Skip to main content

Why I Feel Investing Money in UITFs Might Be a Good Idea While Studying DIY Stock Trading

It's said anybody can do stock trading. However, the idea can be very suicidal if one decide to rush into stocks without studying how to effectively do it. Some people can even recklessly borrow tons of money and end up harming themselves when the trade was at a loss. They might've borrowed the money from a loan shark for all we know. I'm trying to study the stock trade though there's a good option. AXA Chinese Tycoon is a managed fund. Now, there's also Unit Investment Trust Fund (UITF) which could be a good alternative while one is learning to do stocks. Stocks can be learned but remember--no investment is ever a walk in the park. Stocks need some time to learn. 

I haven't started direct stock trading it. Meanwhile, I'm aware that funds like the AXA Chinese Tycoon or the UITFs are powered by stocks. The pandemic has prevented me from doing direct translations. Instead, I decided to use GCash and ATRAM (linked to GCash) to start another trading portfolio. Since I already have bonds--I decided to invest some excesses right into some accounts. Before that, I'd like to share the differences based on Seedbox Philippines to find out the two baskets to put money into:

Pretty much, these are two alternatives for those who feel that they don't have the time, expertise, or the courage to do Do-It-Yourself (DIY) stock trading. The UITF (as its name suggests) is based on Net Asset Value Per Unit (NAVPU) while mutual funds would be about shares. The AXA Chinese Tycoon Fund is based on units from blue-chip Filipino-Chinese owned company stocks to which the value goes up and down according to the market performance. After I decided to get GCash to be able to pay people who don't use third-party deliveries - I decided to get into GInvest. I didn't know how to understand it yet so I placed a small amount to see how it goes. What I foolishly did was not thinking that if the performance is low--the NAVPU is low. A low NAVPU means that I'll be able to buy more units than when it's high. 

Let's take the ATRAM Philippine Equity Smart Index Fund. This fund is focused on the 30 companies that comprise the Philippine Stock Index. You can start for as low as PHP 50.00. However, I suggest saving up until you get a PHP 1,000.00 or even save up to PHP 5,000.00 and see how much the NAVPU is. It would be wise to see how much the NAVPU is and see how many units you'd buy. For example. investing PHP 1,000.00 when the NAVPU is 108 will mean you only get 9.2593 shares while investing it when the NAVPU is 101.21 means you get 9.88 shares meaning a few more shares than usual. Though, I might prefer to do value averaging because buying more units at a discount may mean getting more when the value rises up. It might be wise to invest PHP 2,000.00 or more when the market is down and only PHP 1,000.00 when the market is up. Other funds would involve foreign companies which can also be a good thing.

Right now, UITF costs are rather low as I've checked on GInvest. The stock market at an all-time low means stock prices are low. UITF portfolios are dependent on stocks. It would mean that if I bought more now--I'll be able to take advantage of future increases later. Going for PHP 3,000.02 per month may not give me what I want. Maybe, I pledge to at least invest a certain amount per month. However, it might be wise not to buy some units if the NAVPU is too high. Instead, it might be best to sell it or just let it grow. Though, one might consider the UITF if the price is so high then save up some money should the market go low again. Some people are still willing to buy at a higher price such as those who choose to buy high to sell higher or buyers who do money cost averaging. Some people invest the same amount per month regardless. Others choose to put more than usual when the market is low and put the default amount when the market is high.  

A discipline I need to develop is just to check the investments monthly or quarterly. What would be important to take note of is this--invest only what I don't need right now. I need to keep learning to save as well. I shouldn't invest the money needed to pay bills. Instead, I should invest whatever small amount is there first then make it a habit. That's what I've been taught but need to learn some more. I think investing every quarter would mean I may have some more money to spare. It would mean looking at the horizon if it's time to buy or time to sell. As said, I'm not selling any UITFs right now (though I did sell some older ones to test my skill). Now, it might be time to focus on growing the petty cash investments on GInvest into bigger cash investments. 

Popular posts from this blog

The 2026 Iran War Audit vs. OFW-Reliant Pinoy Pride Economists

It's a shame, really, that I didn't think about writing this article on OFWs again. I got somewhat fixated on the  gas prices , and my mind was exhausted. I thought about how I even asked, " Will #SahodItaasPresyoIbaba economics even lower down the prices of gasoline? " It's one thing that the Philippines has been overly reliant  on the Middle East for gasoline. What I overlooked was the OFW phenomenon again . It was so easy to hype on the OFW phenomenon, like what happened with the Filipino nurse, Ello Ed Mundsel Bello, way back in 2015. The OFW hype would've compounded the Philippine economy's "reliance model" to a whole new level of bottleneck!  Analyzing the bottleneck of relying on the Middle East It's already a known fact that several OFWs are sent to the Middle East. I even remember running across a presumably retired dancer who would be 64 today, on Facebook. The guy actually bragged about how he was a dancer at the Excelsior Hotel in...

A Destructive Obsession with Ayuda (Cash Handouts)

IBON Foundation Yesterday, I decided to write about how Pinoy Pride won't help pay that enormous PHP 13.42 Trillion debt . I thought I'd probably take a bit of a break to do some more research. However, I feel the need to write this post today since one of IBON Foundation's articles says that there's a destructive fetish for foreign investment . Then, another of IBON Foundation's articles says that there's money for Ayuda . I really feel insulted reading these since I'm a Masters Degree graduate in the School of Business and Economics. This really shows the destructive obsession with ayuda (cash handouts) and protectionism. IBON Foundation Above is one of IBON Foundation's charts. Some people on Facebook have gone as far as to call them Birdbrain Foundation. So what if there's money for ayuda or cash handouts? The problem here is that "think tanks" like IBON Foundation want to make it look like ayuda is more important. If asked to account ...

How is IBON Foundation Viewing and/or Representing FDI in Their Articles?

Some time ago, I wrote about why I can't take IBON Foundation seriously . As the battle for economic charter change is on, I believe it's time to tackle them again. They're tweeting here and there. Okay, I'm no researcher or organization. However, it doesn't mean that I can't do some basic research, share the research of others, and read other books. Even an intellectually stupid person can actually make sense if they gather the best materials. I even recall someone I know who's not intelligent but he actually spoke well about career opportunities, in the very school where he wasn't performing well! Trying to understand IBON's data presentation  I would like to address how IBON Foundation presents FDI growth. They would say stuff such as the claim job creation weakened despite FDI growth .  I was looking at IBON Foundation's claim (above) where it says that job creation allegedly weakened despite FDI inflows. Sure, they named sources but do they ...