Last Updated on June 30, 2020 by Marie Bautista
I probably have written about how much I love Mutual Funds and UITFs as investments for beginners, but some people need a point-by-point explanation.
So, are Mutual Funds and Unit Investment Trust Funds good investments?
Also Read: Mutual Funds and UITFs 101
Mutual Funds and UITFs are basic investment tools for growing your money.
Because MUTUAL FUNDS AND UITFs are your basic investment tools to GROW YOUR MONEY!
What are Mutual Funds and UITFs?
ONE – Mutual Funds and UITFs are investment products where money is pooled from investors.
TWO – The money is handled by a professional fund manager.
THREE – The money is invested in specific investment option classifications.
You can choose from equity, balances, and fixed-income funds. There are peso or dollar funds.Each type has different rules, so it is important to ask the fund manager or the bank. ✅An Equity Fund is mostly invested in the stock market, and therefore offers higher gains, but is also riskier. ✅A Fixed-Income Fund (bonds or money market) is mostly invested in government securities and other fixed-income securities and therefore offers modest returns because it is less risky. ✅A Balanced Fund is invested both in the stock market and in fixed-income funds. The returns here are moderate, but so is the risk.