Skip to main content

Why I'm Currently Using GInvest's UITFs over Mutual Funds as Additional Baskets

I remembered wanting to invest in stocks but didn't have the money or expertise. Sometimes, it's advised to stay safe and get involved in stocks indirectly. There's the mutual fund and there's the Unit Investment Trust Fund (UITF). I remembered when I wrote about how it might be wiser to save up first before investing in GInvest. Another one that I wrote focused on investing money in UITFs while studying stock trading. GInvest funds are UITFs since they are measured by Net Asset Value Per Unit (NAVPU). There are two that involve government securities. Others involve stuck (such as the Philippine Stock Index Fund and the Philippine Equity Smart Index Fund). Every time I purchase means I get a receipt as proof of purchase. There are also feeder funds which Banco De Oro (BDO) describes as a UITF that invests 90% of the money in a collective scheme. These would involve the use of foreign stocks such as Apple or Samsung--depending on which feeder fund one's investing in.

Meanwhile, Nerdwallet actually has presented the differences. Index funds try to match the performance of the stock market. Mutual funds try to outperform it. What happens is that a more aggressive approach to mutual funds means higher management costs. Meanwhile, management feeds of an index fund are significantly lower because of the less aggressive approach. Index funds are in a fixed set of securities. Mutual funds are in a changing list of securities. In short, the more aggressive approach requires higher fees due to how difficult it is. It's pretty much like choosing between delicious food that's moderately priced vs. super-hard-to-make delicious food.

For example, the ATRAM Philippine Equity Smart Index Fund is invested only in the 30 companies of the Philippine Stock Exchange Index. The ATRAM Global Consumer Trends Feeder Fund is invested in foreign companies involved in consumer needs such as Amazon, Sony, Electronic Arts, and General Motors. I think the fund picks change depending on which is ideal for the portfolio of these funds. So far, I reached my ideal minimum target for one (which is worth one month's salary) while the others may be subjected to either getting a minimum of PHP 1,000.00 for a month or slightly higher if the NAVPU is lower. It would be best to combine both money cost averaging and value cost averaging to get the best results. 

I won't post the exact figures. Financial figures should remain confidential no matter how small or how big. I'll just suggest that if you have GCash and some cash to spare--you may consider adding into GInvest. If not, there's still other great services out there too. 

References


"Index Funds vs. Mutual Funds: The Differences That Matter" by Dayana Yochim (April 27. 2021)

Most read posts this week

The Philippines, Apple Inc. and the BOTTLENECK with Article XII of the 1987 Constitution

Inquirer A day ago, President Ferdinand "Bongbong" Romualdez Marcos (above) was seen ceremonially  giving away 209 Apple MacBook Neo units in Dagupan City, Pangasinan. This was news from the Inquirer . On GMA News , I thought about the DepEd deal with Apple Inc. I will give an excerpt  from the  GMA News   article on the deal itself: " We welcome Apple's participation in this procurement to bring MacBook Neo to our teachers. It isn't just about handing out world-class hardware with five-year warranties; it's about giving our educators the best tools, backed by robust training so they can focus on what matters most: teaching our children ," he (Sonny Angara, emphasis mine) added. Apple Chief Executive Officer John Ternus also spoke about the deal during Apple's Financial Results Conference Call for 4th Quarter 2026. Ternus said he was excited for the opportunities that Apple had ahead of it, including services to fields such as health and education. H...

Is IBON Foundation Making Their Analysis Based on Revenues Equals Profits and Blaming FDI for Joblessness?

I was looking at Facebook this morning. It isn't too surprising that the IBON Foundation posted this with hashtags like #BuildFilipino, #StriveForIndependenceAndSovereignty, and #ASEAN2026PH along with it. I looked at this recent graphic made by IBON and I want to ask myself, "Is IBON Foundation treating revenues as profits?" It's because IBON has been calling for #SahodItaasPresyoIbaba, which literally means, "Increase salaries, lower the costs of goods." It's as if the salary doesn't affect the overall cost of production.  Mistaking revenues as profits?! It's probable that IBON may be presenting revenues as profits . If that's so, then how can an economic think tank make such a common-sense error? It's really laughable some people on Facebook insult me repeatedly on Facebook, while praising IBON. However, I'd like to present this common sense analysis. Business & Plans If we look at this sample accounting plan alone, we realize ...

I Can’t Expect More Filipinos to Do Proactive Healthcare under the Filipino First Policy

Presidential Communications Office Yes, it's almost Christmas, and I expect Filipinos to ignore their health . It's easy to get caught with the symptoms, right? I wrote a Throwback Thursday post where I discussed the wrongness of the slogan, " An apple a day keeps the doctor away. " This has resulted in the reactive healthcare side, where people  avoid seeing the doctor. In the case of the dentist, I remember growing up with the threat of the dentist, such as, "If you eat too many sweets, we will have to go to the dentist." The result was that the dentist and the doctor aren't seen as friends but as boogeymen.  Midland Sports Rehab In fact, proactive healthcare is something I'm switching to right now. I had a visit with a cardiologist who put me on 24-hour ambulatory blood pressure monitoring (ABPM). It was discovered that I had asymptomatic hypertension . The doctor said, "We shall not wait until you come here holding your chest." In fact,...