Stocks vs Mutual Funds vs VUL vs UITFS

[Sebastian Bach]

Hello

Need advice from the experts, which of these 4 will be the best place where I could allocate part of my funds that will be redeemed in exactly 5 years from now? In terms of cheap admin fees and easier to pull out. I will allocate a portion of my emergency funds + add monthly increments then pull them out after 5 years.

Currently I am invested in blue chip stocks and high dividend equity UITF from BPI where I am planning to let it sit there for 15-20 years and no plans of pulling them out anytime soon. I have no experience in selling my stocks or redeeming funds from these so I have no idea which are cheaper in terms of managements/admin fees. This will be a separate pool for just 5 years.

Thank you for those who could help.

[Walter]

Subscribing ...

[1D4LV]

personal experience ko ito, but with Sunlife, i had the best yields for 5 years. Pulling out is 48 hours.
Good thing here is that if you put in your investments with any life insurance company (e.g. Manulife, SUnlife, PruUK, Insular), may life insurance factor ka pa. However, as far as i know, si Sunlife lang ata ang may MF placements lang na pwedeng walang life insurance factor.

banks sa UITF also give good yields, yun nga lang, madaming chechebureche. daming documentations dahil sa AMLA. i did that once with BDO, gave the same yields as Sunlife, pero daming tanong and documentations. Pulled it out and nilagay ko yung laman sa Insular Life.

suggestion ko. shop around. talk to financial planners. mas maganda kung personal mo silang makakausap.

0.02.

[Sebastian Bach]

personal experience ko ito, but with Sunlife, i had the best yields for 5 years. Pulling out is 48 hours.
Good thing here is that if you put in your investments with any life insurance company (e.g. Manulife, SUnlife, PruUK, Insular), may life insurance factor ka pa. However, as far as i know, si Sunlife lang ata ang may MF placements lang na pwedeng walang life insurance factor.

banks sa UITF also give good yields, yun nga lang, madaming chechebureche. daming documentations dahil sa AMLA. i did that once with BDO, gave the same yields as Sunlife, pero daming tanong and documentations. Pulled it out and nilagay ko yung laman sa Insular Life.

suggestion ko. shop around. talk to financial planners. mas maganda kung personal mo silang makakausap.

0.02.

Alright, thanks sir. How's the management fees compared with the 2? Minimal difference lang ba?

[1D4LV]

Alright, thanks sir. How's the management fees compared with the 2? Minimal difference lang ba?

if you park your money there for 5 years, management fees are free.
minimal, if below 5 years. i think wala pang 1% per annum.

[badkuk]

The thing about mutual funds/UITFs, you have to sell them before you actually make money. e.g.

- you buy into a mutual fund/UITS today, NAV at 100 pesos
- you check it after 1 month, NAV rises to 150 pesos = *paper gain* of 50 pesos
- you redeem it after 2 months, NAV drops back to 100 pesos = you gain nothing, plus you have to pay the fees.


The good question here is when to sell. e.g. if you already have a paper gain of 10% on your equity fund, do you sell now? What if the PSEi goes up to 7800-7900 tomorrow?

imho, mutual funds/UITFs, except maybe money market funds do need to be managed...it' not like time deposit where you just wait for the interest to accumulate.

i used to have an investment in BDO's $ Money market fund. afaik it invests the money in deposit instruments, t-bills, etc. -- super safe, super liquid. Based on previous performance over the years the NAV steadily goes up, but you gain on average around 1.++%.

[1D4LV]

The thing about mutual funds/UITFs, you have to sell them before you actually make money. e.g.

- you buy into a mutual fund/UITS today, NAV at 100 pesos
- you check it after 1 month, NAV rises to 150 pesos = *paper gain* of 50 pesos
- you redeem it after 2 months, NAV drops back to 100 pesos = you gain nothing, plus you have to pay the fees.


The good question here is when to sell. e.g. if you already have a paper gain of 10% on your equity fund, do you sell now? What if the PSEi goes up to 7800-7900 tomorrow?

imho, mutual funds/UITFs, except maybe money market funds do need to be managed...it' not like time deposit where you just wait for the interest to accumulate.

i used to have an investment in BDO's $ Money market fund. afaik it invests the money in deposit instruments, t-bills, etc. -- super safe, super liquid. Based on previous performance over the years the NAV steadily goes up, but you gain on average around 1.++%.

tama bro. however, for 5 years, medyo nil ang chance na you lose, perhaps except if the stock market crashes big time....and that would be a financial turmoil.

for example you get one now at 10 pesos nav, in 5 years, parang malabong maging 10 pesos or lower per nav pa din yun.

[Sebastian Bach]

The thing about mutual funds/UITFs, you have to sell them before you actually make money. e.g.

- you buy into a mutual fund/UITS today, NAV at 100 pesos
- you check it after 1 month, NAV rises to 150 pesos = *paper gain* of 50 pesos
- you redeem it after 2 months, NAV drops back to 100 pesos = you gain nothing, plus you have to pay the fees.


The good question here is when to sell. e.g. if you already have a paper gain of 10% on your equity fund, do you sell now? What if the PSEi goes up to 7800-7900 tomorrow?

imho, mutual funds/UITFs, except maybe money market funds do need to be managed...it' not like time deposit where you just wait for the interest to accumulate.

i used to have an investment in BDO's $ Money market fund. afaik it invests the money in deposit instruments, t-bills, etc. -- super safe, super liquid. Based on previous performance over the years the NAV steadily goes up, but you gain on average around 1.++%.

Thanks for your input.

Actually no matter what their values are after 5 years, I will still have to pull them out no matter what coz that's my time-frame. I can't assume it will be higher that's why I'm taking a risk rather than just let them sit in my savings account. I'm more concerned on which are easier to pull out with minimal management/admin fees (which of those 4).
Coz this will serve as my short term + semi-emergency funds, I have target date and amount to complete within 5 years. Fixed amount of my monthly net pay will go here. Gains will just be perks and for possible losses, I am willing to take the risk. I have long term investments that I maintain every month so it's ok.

AFAIK, with UITFs you need not to sell them back coz you can just redeem your units (with fees) anytime. Stocks yes, they're all just unrealized gains without those management fees, commissions, taxes yet.

[yebo]

re sunlife, dati 48 hours. now they will tell you it's 5 working days. pero siguro pag wala silang ginagawa mas mabilis, like i just "borrowed" from my funds last year and it was in my bank account after 3 days.

[StockEngine]

Stocks... crude oil
Investment funds: oil companies. Shell Ph still has to make IPO. This will be huge...
Warren B just bought billions into oil..its about to go up.