What’s the difference between Mutual Fund and UITF?

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What’s the difference between Mutual Fund and UITF?

Certainly, a lot of people ask this question nowadays. Now, I am going to share their major differences. 

They are almost the same as both are pooled investment, managed by fund managers and their types (money market, bond, balanced etc) are usually the same too. 

However, in Mutual Fund, the investor buys shares while in Unit Investment Trust Fund (UITF), he buys units. Thus in MF, they report NAVPS while in UITF it’s in NAVPU. 

• NAVPS – Net Asset Value Per Share
• NAVPU –  Net Asset Value Per Unit

UITFs are offered in banks like BDO, Metrobank, BPI and the likes. On the other hand, MFs are offered by companies like Rampver Financials, Soldivo Funds, Sun Life, Philam Asset Management Inc. and many more.

UITF and Mutual Funds also vary in redemption fees.

Bottom line, your concern is always the return so it’s important to learn and check their past performance before you open an account. 

Start a relationship – get to know a mutual fund company and let a mutual fund company get to know you.

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