Last Tuesday, the day after we received our Christmas bonus, the hubby and I realized another financial goal. Along with my sister Jodie, we opened a Peso Balanced Fund with Banco de Oro (BDO). It’s one of their Unit Investment Trust Fund (UITF) offerings. Our branch of choice was the one nearest to our place, SM Manila. Slowly but surely, this little investment, along with our other ones, will grow. We are already claiming it!
It was quite easy to sign up. I just brought two valid IDs and that’s it. (We have decided to put this account under my name for easy monitoring.) Oh wait, another requirement is having a savings account with BDO which I do have. Anyway, the account officer had me fill up an application form and a signature specimen form. She also had me answer a Client Suitability Assessment (CSA) form to find out what type of investor I am and if the product I was eyeing suited me. She also took a photo of me through a camera attached to her PC (no need to bring 1×1 pics!). Then I handed my initial investment and I was issued an official receipt. I got the Certificate of Participation (COP) after three days.
One could also choose to sign up to BDO’s Easy Investment Plan (EIP) where you are required to put a certain amount of money (say P1,000 to P5,000) monthly and when it reaches the minimum for additional investment, they would automatically transfer the money to your UITF account. It sounds good, right? It could motivate you to set aside investment money on a regular basis. But we didn’t avail of it, for now. Maybe when we’d have a steady supply of spare cash, we will.
Now, why not a Peso Equity Fund instead of a Peso Balanced Fund? Or why not Mutual Funds? The reason lies in the fact that we are already investing directly in the stock market thru COL Financial. We also have some Retail Treasury Bonds tucked away. We think that a Peso Balanced Fund, with its moderate risks and moderate returns, is best suited to our needs.
Our bank of choice is BDO primarily because I have a savings account there. (This is what we use in paying some of our utility bills and in transferring money to our COL Financial account). They even have branches almost everywhere which makes investing with them very convenient for us. Plus, their required minimum investment is just P10,000. (It’s the same amount for the additional investment.) I’ve researched on the performance of their UITF products in the past years and the figures looked good enough to me. I know past performance is not a guarantee or indicator of future results, but BDO somehow got me curious and interested.
I’m just glad the hubby trusts me when it comes to money matters. He listens to me when it comes to investment decisions like this. He lets me manage my own money and whatever spare funds he has, he gives to me so I could add it to our investment portfolio. The small size of our investment at present doesn’t really matter. What matters is that we have already acquired the mindset to save and invest. Soon, our investments will grow and will continue growing. We will reap the rewards at the right time.
Do you also invest in UITFs? What kind and which bank? 🙂
May you choose happiness always,
very good edel,kaka inggit naman. wala pa kaming ganyan,we’ll do some research muna siguro para ma maintindihan namin maigi. Ang complicated kasi ng usaping investment pero magandang move yan.
sa ngayon ang goal ko is saving muna sa piggy bank. Thanks for always inspiring me with your financial posts, edel. nakaka engganyo. =)
Thank you, Joy. Oo mas maigi na handa at may alam sa anumang papasukin natin. Si Baby A turuan nyo rin magsave sa piggy bank ha. Hehe. 🙂
Wow, eto pala yung sinasabi mong additional investment! congratz ms edel 🙂
Oo yan nga. Nairaos din. Thank you, Grace! 🙂
Informative post! I’m also eyeing venturing to a UTIF with another bank. Yun lang, I’m worried that they have a requirement of opening a savings account pala. Do you have any idea if such policy is carried over other banks?
Sa BDO, yes dapat may savings account. Pero may nabasa ako blog before, wala sya savings account with BDO pero pinayagan sya, sinabi nya lang kala ko ba “You find ways,” ba’t hindi nyo ako ma-accomodate. Tapos ayun, after those magic words, inaprub na ng manager kahit walang savings account. Haha. 🙂
With other banks, I think the same policy applies para siguro mas madali mamonitor ng client lalo na pag merong online banking ang bank of choice mo.
May na-remember mako divan sa “we find ways” na yan… I remember a professor relating to her student about a negative experience with the bank. The professor said, “you are claiming, you find ways. how can you cannot help me” The student who works for BDO in return said, “ma’am we only find ways. it doesn’t necessarily mean we find solutions” Winner!
Anyway, I plan to open at Security Bank. If such is the case nga, then I have to prepare Php 5,000 additional pala for the savings account.
Thanks!
Winner ang sagot ng student na taga BDO ah! Yes, better prepare 5k for the savings account. If pde namang hindi mag-open, dagdag pa sa investment mo yun or pangshopping kaya? Hehe. 🙂