How to Open a UITF or Unit Investment Trust Fund Account

There are so many benefits to enjoy from a UITF investment.

From high returns to expert fund management, you have a better chance of getting an ROI.

To enjoy these benefits, you will need to open a UITF account.

See below for a guide on how to do this.

 

Choosing a bank and UITF product

UITF is a generic term for this type of investment.  When checking for a bank to invest your money in, be prepared to see it called by different names.

Banks offer a variety of UITF products to fit all types of investors ranging from moderate to aggressive.

 

Starting with Money Market UITF

If you are just starting and would like to get a feel of this kind of investment, you can start with Money Market UITF’s.

This is ideal for moderate investors who want to see an ROI within a year.  Although since it is a short term investment, the returns will be much lower than more aggressive UITF’s.

Feel free to discuss it with a representative at the bank you choose.  Most banks allow you to open an account online if you already have an existing deposit with them.

When applying online, you will be asked to fill out a survey to determine what type of UITF will be applicable to your investment goal.

 

Do your research

One great way to pick out a financial institution and product will be to do research.  The web offers a lot of resources to show which banks have had success in each UITF products.

 

Opening a Unit Investment Trust Fund Account

  • Online Application

As mentioned above, some banks allow you to apply online if you already have a deposit account with them.  These are usually available on your online banking menu.  However, you will still need to visit the bank to complete the application and present the necessary documents.

  • Physical Application

Most banks will require that you visit one of their branches to open a Unit Investment Trust Fund (UITF) account.

 

Step 1

Approach one of the trust employees (not the tellers) to get assistance.  They usually sit on desks beside the counters for the tellers or in separate offices visible from the lobby.  Some banks have made it easier for us by putting up signs next to the employees’ desk to let us know who handles what.

 

Step 2

Present your documents to the trust employee and fill out the UITF application form.  These are usually actually better referred to as kits because they contain much of the information you need.  The employee will then discuss with you the different types of Unit Investment Trust Fund products available to match your investment goals.

Always check what the cut-off time for the funds.  Some banks have it before lunch while others have it at the end of banking hours.  This will ensure that you get the daily NAVPU posted.  NAVPU is the total cost of the fund minus the expenses divided by the number of units available.

 

Step 3

Review the COP or certificate of Participation that will be provided to you once you purchase your desired number of units.  Take your time in reading the Trust Agreement included as this serves as the terms and conditions of your participation.

 

Step 4

If you registered at a bank location, it will be ideal for you to register your account with the bank’s online services.  This will allow you to regularly check on your investment at your convenience.

Some banks offer the option of setting up an appointment with you to discuss your investment.

Simply visit their websites and fill out the needed information and a representative will contact you at a later time.

 

All in all, a Unit Investment Trust Fund (UITF) is a great way to invest your hard earned cash.

With different types of products and different ways to apply for an account, you can find one that is most convenient and profitable for you.

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