Unit Investment Trust Fund is Not a Good Way to Time The Market
My first experience of redeeming my participation went sour. I hit the trigger too early. Ibinenta ko ang aking ALDUPEQ para ilipat sa Index Fund. It’s around P600 gains the last trading day when I hit the trigger. Kinabukasan, when the order was executed, I lost P134.95. Kaya kung mag-trade ka na rin lang, get yourself a good broker. At least you can time the market much better.
UITF’s net asset value is only as good at the end of the day. Hindi mo alam kung anong magiging resulta during the remaining trading hours. So for a better margin, go for a long term holding with your UITFs as it is intended.
But for me, if I meet the purpose or reason for selling, that’s success. If I got with gains, that would be the icing of the cake. Unfortunately, the cake was smucked on my face.
Redeeming ALDUPEQ and moving it to Equity Index Fund will concentrate all my investments in Index funds. Although my UITF funds are in different banks – PNB, Security Bank and BDO, they are all Index Funds. Magkakaroon lang ng slight differences sa kanilang results.
Another addition will be First Metro Exchange Traded Fund which is also an Index Fund of its sort. While my UITF is in auto-invest mode, I will use BDO Nomura to execute my Limit Order (Good Til Cancelled) to time the market buying FMETF. I will try the ETF and see if this will be a better option for a long term investment over UITF.
Sabi nga, “Don’t change your goal and time, you change your vehicle” kaya I keep finding better ways to do my “passive” investing. Although MFETF is a holding company, it is not the same as the other companies traded in the stock market, its fund is intended to mirror the PSEI Index.
Of course, this is only my point of view. Your opinion will mean more to you.
So what are you using as your vehicle to attain financial freedom? Again, let me remind you, how ever good your vehicle (a Ferrari maybe) but if you don’t know how to drive it, you’ll end up in the ditch. Get my Pinoy Millionaire Game Plan to learn my strategies to financial freedom.
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Here’s to your success!