PERA or Personal Equity & Retirement Account was launched by the Bangko Sentral ng Pilipinas last Dec. 16, 2016 which aims to facilitate Filipinos to save for their retirement.
When choosing a UITF, investors should identify their needs and goals and match them against the investment parameters of the product. To determine the clients’ suitability to a fund, the following factors have to be considered:
- Investment capacity – the amount available for investment
- Investment horizon – how long a client can stay in the fund
- Risk profile – how much risk the client is willing to take
- Investment objective – what the investors seeks to achieve by making the investment, e.g. whether client wants income or capital growth
The investor should likewise be comfortable with the trustee of the UITF in terms of their expertise and skills in fund management.
A Unit Investment Trust Fund (UITF) is an open-ended pooled trust fund denominated in pesos or any acceptable currency, which is operated and administered by a trust entity and made available by participation. Each UITF product is governed by a Declaration of Trust (or Plan Rules) which contains the investment objectives of the UITF as well as the mechanics for investing, operating and administering the fund.
Most UITFs are considered medium to long term investments. Clients considering to invest in UITFs must have the financial resources to stay invested in them for a reasonable period of time in order to maximize earnings potentials. If the funds to be invested will be needed by the client in the immediate future, the UITFs may not be a suitable investment vehicle for such client.
Source : http://www.uitf.com.ph
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