5 Reasons why you should Invest your Year-End Bonus in UITF
October 28, 2017
Saving alone is not enough to make your money grow. You need to invest your money wisely and see it grow over time. With its many advantages, Unit Investment Trust Funds or UITFs offer attractive opportunities for investors.
Here are five reasons why you should invest in a UITF:
1. UITFs give you higher potential returns.
Based on historical fund performance, UITFs have provided higher returns than traditional deposit products. For example, a P5,000 investment in a time deposit will only earn P203¹ in five years versus P2,842² if invested in an equity fund.
¹Based on top 3 banks’ average Time Deposit rate 0.80% per annum (p.a.) as of September 30, 2017.
²Based on Manulife’s Equity Fund average performance from 2012 to 2017 of 9.42% p.a.
2. UITF is your weapon against inflation.
Inflation affects your purchasing power. The Bangko Sentral ng Pilipinas (BSP) forecasts inflation to average at 3.2% in 2018. If this will be the trend in the next few years, your P5,000 today could be P800 lesser in value after five years.
To beat inflation, you need to make investments that can yield returns higher than the inflation rate.
3. UITFs are managed by investment experts.
You don’t need to burden yourself and spend your valuable time researching, analyzing, and keeping an eye on the market. You don’t need to make big financial decisions on your own too. UITFs are managed by professionally-trained investment experts who can do this for you.
4. UITFs allow you to diversify your investment.
Diversification is very important when it comes to investing. Why invest in just one or two stocks when you can diversify and invest in more than 20 stocks? UITFs are invested in stocks, bonds, treasury bills, debt securities, high-yield savings account, and other fixed-income instruments.
5. UITFs are affordable.
Compared to stocks and other investment instruments, you can start investing in UITF for as little as P5,000.
Think of making an investment in Manulife Asset Management and Trust Corporation’s UITFs as an early Christmas gift for yourself. Don’t you agree that now is a good time to invest for your future?
To learn more about UITFs and how it works, click here.