Arteng Pinay II: On Pooled Funds

10:13:00 AM Rhea Mocorro 0 Comments


As stated in yesterday’s post, I was invited along with two lovely bloggers, Des and Krissy to Arteng Pinay, a financial workshop for artists and musicians a few Sundays ago. Yesterday I shared what Des has shared during that time and now I am going to share Krissy’s lecture that afternoon.

Krissy’s talk is all about Pooled Funds. She discussed in detail regarding mutual funds and UITF or Unit Investment Trust Fund. These two although the same in terms of collected funds from different investors, they are still very different.

For one, mutual funds are guarded by SEC and managed by mutual fund companies. The price of the fund is based on NAVPS or Net Asset Value Per Share. These are sold by licensed mutual fund agents. There are also charges in line with this kind of investment. 1% to 5% for sales charge, 0.5% to 3% for redemption fee and 1% to 2.5% for investment advisory, distributor and administration fees.

UITF or Unit Investment Trust Fund is guarded by the BSP. When you opt for this kind of investment, you are buying units. These are managed and sold by commercial banks and the price of the fund is referred to as NAVPU or Net Asset Value per Unit. The charges are as follows, 0% to 2% sales charge, 1% to 2% redemption fee and 1% to 1.5% trust fees.

There are many advantages of opting in for pooled funds. For one, the investment is very small. You can actually start investing even at 5,000. Plus, since the funds are pooled in from different investors, the money managers tend to diversify it among different investments. This is also managed by top managers of the bank. You can top it up every month at 1,000 and you can also monitor it online.

Yet just like any other investments, there are still advantages that go with it. For one, we cannot eliminate the risks involved. Second, would be the costs not to mention the charges that are stipulated by the banks. Plus there is that uncertainty in terms of returns and lastly you have no control over management decisions since again the decision making is in the hands of the one in charge with the money.

If you are interested to start with pooled funds, it is now made very easy to open such. Simply read the bank’s prospectus and go there to invest. They have tellers who would be glad to enlighten you about their investment services and even more they will walk you through with the entire thing.


Thank you to everyone who attended Arteng Pinay. I am forever grateful for the opportunity. To Sir Burn, Kassy, Carmi, fellow speakers, Des and Krissy, to Sir Marvin for being there, to the participants and everyone, you realized a dream of mine. 





P.S. To those doing the 52 Week Money Challenge and 52 Week Money Challenge Version 2, it is Week 11 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too.

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