Time to invest in UITF – EastWest

MANILA, Philippines - The country’s economic prospects in the Year of the Fire Monkey bode well for investment-seekers, East West Banking Corp. said.

Angel Marie Pacis, first vice president and trust officer at EastWest, said now is the time to invest in equities or shares of stock as prices are down after financial markets in the Philippines and Asia have taken a beating since the start of the year.

“There are a lot of opportunities for both individual and corporate investors although it is going to be a roller-coaster ride. Since hot money is going out, financial markets are correcting. Stock prices, in particular, are down,” she said.

However, Pacis pointed out investors should do an overview of the stock market and pick companies that are doing well but whose prices are at a discount. “Know that good companies aren’t always good stock investments. If the trading price is already high, price appreciation and return on investment will be limited. Investors really need to assess potential upside,” she said.

According to Pacis, the market decline is but temporary since the real economy is doing well.

“There are jobs especially in the BPO sector, OFW remittance growth remains positive, and election spending is starting to pump prime the economy. These are signs that equities, for one, will surely recover. The strong economy and the stock market will synchronize at some point,” she said.

But investing on your own can be daunting, especially if you are not knowledgeable about stocks or bonds.

On the other hand, you may know enough, but don’t have the time to monitor your investments. More importantly, diversifying investments to protect oneself from a roller-coaster ride will require big investment amounts when done directly, on your own.

It is thus good news that there are a number of easy investment options that address these concerns, such as unit investment trust funds (UITF). These are investment products wherein money from various investors are pooled together, invested and managed by a trust entity, such as the EastWest Trust Division.

Investors can just walk into any EastWest store to invest in UITF for as little as P10,000. And with bank officers to give you advice, choosing the right UITF is relatively easy.

Being “open ended” investments, UITF investors can withdraw their funds when the need arises, subject to fees, in some cases.

“There’s no one best investment; it always depends on the situation of the investor. People with money to invest should choose the UITF that matches their time horizons, the kinds of returns they need, and their risk appetites. Our branch people are equipped to guide them in doing so,” Pacis said.