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)
Labels:

Popular posts from this blog

Davide vs. Mahathir: Which Lolo Should Filipinos Take Economic Advice From?

The real issue isn't that something is old or new. Instead, if something old or new still works, or doesn't work! Many modern laws are built on some ancient principles, while adjusting to the current times!  The Constitution of Japan is actually older than the 1987 Constitution of the Philippines. However, it's more effective for the reasons that (1) their constitution is silent when it comes to regulating economic activities (ex., protectionist measures), and (2) it's a parliamentary system. Honestly, it's a pretty straightforward constitution compared to ours! As Mahatir Mohamad turned 100 today, I would like to raise up Atty. Hilario G. Davide Jr. once again. The problem isn't Davide's age but his unwillingness to embrace change when needed (read here ). This time, it's time to bring up a contrast between wise old people and unwise old people. A young person can be right where the old person is wrong. A young person can be wiser because he or she lea...
Read more

Overspending as a Narcotic of the Filipino Masses

Harvard Health Publishing It's almost time for the New Year, right? However, there's the problem that so many Filipinos just refuse to do any financial New Year's resolutions . It's a continued series of broken New Year's resolutions year after year , such as not doing anything about one's financial and economic literacy . Then again, can Filipinos learn financial literacy when the school environment is  too theoretical ? As I observe the same cycle in the Philippines, from January to December, it has always been a financial mess for many Filipinos. The problem starts with mishandling money, such as how paychecks are often handled by people .  There's always some joy in spending, whether we want to admit it or not We can't deny that if we bought what we want (especially with one's own money), there's some feeling of satisfaction . For example, a person who stops begging from their parents and starts buying what they want, with  their money , can ...
Read more

Don't Complain About the PHP 500.00 Noche Buena Remark While Supporting the Filipino First Policy

It's that stupid  when I read the remarks of DTI secretary Cristina Roque made a really tactless remark . Sure, the remark had people angry because, in reality, the whole noche buena at PHP 500.00 for a family of four will not match, given these ingredients: ham, P170 to P945; fruit cocktail, P61.76 to P94.41; all-purpose cream, P36.00 to P72; “nata de coco,” P52.50 to P62.50; “kaong,” P76.50 to P84; “queso de bola,” P210 to P470; cheese, P16.50 to P310; and mayonnaise, P20.40 to P245.85. /dda As I read through the list above, I'm reminded of how much I don't like December because it's the season of abounding toxic positivity . The song "It's the Most Wonderful Time of the Year" is in full blast, even after Andy Williams died of old age in 2012 . I tend to drive the road and when traffic hits, I always think about the problem of last-minute Christmas shopping , and scream it, "Isn't it any wonder why the Philippines doesn't improve?" It...
Read more

Warren Buffett's Principles NOT Taught in Business School?

I'm a graduate of a business school. I felt ashamed (to a certain extent) that I wasn't accepted into the Bachelor of Science in Information Technology (BSIT) course. I decided to pursue business school instead as planned after my first year in my Associate in Computer Science (ACS) course. I decided to take a master's degree to impress others or to convince them I'm not a fool. Later on, while taking my Masters in Business Administration (MBA) degree--I fell into a scam by a family friend and later didn't even know what Cash 2 Go in the Metrobank credit card was. After a heated argument with someone questioning my course, I was finally told the hard truth I needed to hear, "That proves the Filipino education system really sucks !" I finally had my MBA. Later, I discovered a lot of stuff that I was never taught . One of them was actually the best investment to put into even in the finance classes! Sure, finance classes are needed but shouldn't we teach...
Read more

Why the Old Chinese Education System in the Philippines Can't Pass the HSK Standard Today

Bahay Tsinoy, museum of Chinese life in the Philippines There are a lot of cavemen-minded people out there. Some would argue that Pinyin is making things too easy, never mind that Mainland China was the first to  move to abolish Zhuyin. I was looking at the comments on the Bahay Tsinoy Facebook page, and I was not surprised by them. I try to talk about Pinyin and even ask, "Can you get your business permit with Zhuyin?" I guess I was being too blunt in what I did or not. Those old books above were useless . It's because they required people to learn Chinese first and an overdose of memorization . Memorization helps but without understanding, it doesn't help. Besides, you can't even use those textbooks above to teach Mandarin in the language centers (read why here ). People who graduated from Chinese schools talk about their experiences. Some of them even said, "We just memorized so we don't get whacked at the ruler by the siansi (Hokkien for teacher). Fo...
Read more