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Trust Funds in the Philippines May 21, 2008

Posted by James in Balanced Fund, Bond Fund, Equity Fund, Money Market, UITF, trust fund.
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A couple of months have passed since I started my research on trust funds. What started as a research on time deposits opened my horizons to a better way of investing my savings. At first I was looking for ways to start my savings and to place it on an investment. My problem during that time was that, I just passed the board exam and was just starting my career. I didn’t have any savings during that time but I was determined to start my own savings for my future.
I did my research on the internet and I read one article which was all about Trust funds. As soon as I finished that article I said to my self this is perfect for me. There was just one problem, I never realized that only a few people in my country realize the potential for this type of investment, even my dad had no idea what is a trust fund. After failing receive any advice from my parents I decided to broaden my understanding of trust fund by myself.
There are mainly three types of trust funds which are Equity Trust Fund, Bond Trust Funds and the Money Market Fund. Here in the Philippines they offer the peso and dollar trust funds.
Equity trust funds are invested mostly on stocks, this type of trust fund can offer the highest possible return for your investment. The disadvantage with this fund is the risk is proportional to the return. Bond funds are invested mostly with government bonds and treasury notes. This type of fund offer more security for you investment. The third which is the money market is probably the safest among the three. The funds are used for loans by the bank. There is also a balanced fund which is a mixture of the three and differ from every banking establishment.
If you are interested with the performance of the Trust funds here in the Philippines I suggest you visit this www.uitf.com.ph.