REVIEW ON BDO UITF VS. BPI UITF

I have been invested for a year in BDO Easy Investment Plan, particularly in BDO Fixed Income Fund. It started out as a monthly automatic debit in my savings account until i completed the 10 months of subscription, which gave me a block of P10,000.00 based Certificate of Participation. To my surprise when I got the Certificate of Participation (its a certificate given by BDO, that will serve as your receipt/claim upon redemption of your investment), it already earned of about P502.28 in ten months time or with an annualized return of 6%. To date, the Net Asset Value of my P10,000.00 (principal) is worth P10,836.633 or with an appreciation of P836.633 in one year of placement.

Since then, I decided to increase my contribution to the same fund, making it doubled. After completing again of another block of P10,000.00, in five months it earned already the P70.68 added on the principal amount that was deducted in my savings account. It encourage me more, when I realized that I am partly saving and investing all at the same time. I didn't even feel the pressure of contributing P2,000.00 per month, divided into two cut-offs (every 15th and 30th of the month). I am quite happy with the start of investing with BDO.

Oh well, being happy with my earnings and banking relationship with BDO, I suddenly thought of diversification, plans on up to what extent should I invest and where else can I park some of my idle funds. A  friend, recommended me to try BPI's UITF. I went in one of BPI branches and inquired about it, like in BDO, they did this risk assessment test, and found out that I am a conservative investor. Conservative investors do have an appetite to invest in low-risk kind of products such as TIME DEPOSITS, SAVINGS DEPOSIT and SHORT-TERM MONEY MARKET FUNDS. With that, I finally decided to put my first placement in their ALFM Short-term money market fund, and after two months of placing my P20,000.00 latest Net Asset Value equivalent of my investment is about P20,072.33 or with a Annualized Return of  0.22%.

Both banks do have experienced trust management team, and as far as their returns are going both are performing very well. With the good start that I did, I am more determined to follow the guidelines of a friend  when it comes to follwing the steps of a millionaire;

                 1. As much as possible be DEBT-FREE.
                 2. Pay yourself first. Reward yourself out of your hard-worked earnings be it from your employment of from your business.
                 3. Save
                 4. Incline yourself with entrepreneurship / business
                 5. Invest. Let your money do the work for you.