UITF or Mutual Fund?

Discussion in 'Trade Journals & Stock Tips' started by gracer, Apr 29, 2015.

  1. gracer

    gracer Senior Investor

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    I've been trying to figure out which option would be better for me. I have tried putting my savings in time deposit before but I want to try other options now. Which do you think would be a better and less riskier option, UITF or mutual fund? Both have almost similar offers and I'm thinking of investing in UITF because I feel more secured in banks than in agencies. What are your tips and suggestions on this?
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    The only real difference is that you're not an actual shareholder in the companies owned by the UIT the way you are with a mutual fund.

    You can also buy mutual funds through banks, and the larger banks (as well as many smaller ones) also have internal brokerage firms as part of their business.
     
  3. gracer

    gracer Senior Investor

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    Thank you for giving me an idea. So it means that if I want to be more involved with how my investment works it's better to choose mutual funds? The yield percentage of the two are almost the same right?
     
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I think what you'll want to do is compare the historical performance of the UIT to the market, better mutual funds, etc. And find out how long they've had the same manager or committee. You don't want to invest in a UIT or a mutual fund that constantly changes managers, and you probably wouldn't want to fool with one that has a brand new manager, at least not very much at first.

    You also want to make sure the financial institution itself is in good shape, and that they have some sort of insurance in place such as SIPC that insures each investor up to a certain amount if the institution becomes insolvent. Better institutions also insure against things like employee theft.
     
  5. crimsonghost747

    crimsonghost747 Senior Investor

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    It's not really important to decide between what type of fund you want, rather take a look at WHICH fund you want. Read the tiny details, read about the management, see how they have done in the past. In the end what matters is the performance of the investment instruments in that particular fund, not if they call themselves UITF/mutual fund/ETF etc.
     
  6. gracer

    gracer Senior Investor

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    Thanks a lot for the enlightenment. That was also a concern for me at first because I'm entrusting my money to fund managers whom I have high expectations with but I hardly know to fully entrust majority of my investment.
     
  7. gracer

    gracer Senior Investor

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    Thank you for the idea. So it means it doesn't really matter whether it's MF or UITF right? I really had a hard time choosing at first so I thought of investing in both to see which performs better. The results are yet to be known but I hope I would not be on the losing end by choosing both.
     

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