One of the most pursued investment instrument in the recent
months is the BSP Special Deposit Account. It is offered by the Bangko Sentral
ng Pilipinas through the banking institutions.
BSP SDA is preferred by investors mainly because of its high
liquidity features and interest rates higher than the regular deposit accounts.
Most people has the notion, too, that it is safe and secure since it is offered
by no less than the BSP itself.
Since most of the banks that offer BSP SDA to the public accept
a minimum of 1 million pesos, a large number of investors favored the BSP SDA offered
by Bank of the Philippine Islands because of the very low minimum investment
amount. BPI Trust SDA has P50,000 as its minimum investment amount which favors
small investors.
Starting this month, however, BPI upgraded its minimum
investment amount of its BPI Trust SDA to P500,000 pesos.
Dissuaded by this development, some investors seeks
for a better investment alternative which can offer same high liquidity and
interest rates yet lower minimum investment capital.
One of the best alternative investments in lieu of BSP SDA
is the BPI Short Term Fund. It has
the same liquidity, higher interest rates yet lower minimum investment capital compared
to BSP Special Deposit Account.
BPI SHORT TERM FUND –
AN ALTERNATIVE TO BSP SDA
BPI Short Term Fund is a money market unit investment trust fund
being offered in the trust market by BPI. 97% of its portfolio was on deposits and
other receivables. Majority of these deposits were invested in the BSP SDA.
BPI Short Term Fund favors investors with small capital
since the minimum initial investment is very low at P10,000 pesos. You can
add-up your investment capital later on with a minimum of P1,000 pesos per
transaction.
BPI Short Term Fund is design to be liquid as well since it
has no minimum holding period. Redemption of your investment is easy with your
money deposited in your settlement account one day after your redemption
request is approved by the bank.
FUND PERFORMANCE
BPI Short Term Fund was launch as a Money Market UITF by the
Bank of Philippine Islands on April 5, 2005.
Within the span of five (5) years, BPI Short Term Fund
achieves an annualized performance of 3.13%. It is expected to end the year 2012
above the 3% ROI mark. See the figure below for your reference.
FUND FEATURES
The fund features
of BPI Short Term Fund are stated below for your investing reference and guide.
Type of
Fund: Money Market
Minimum
Initial Investment: P10,000
Minimum
Transaction Amount: P1,000
Minimum
Holding Period: None
Trust Fee:
0.50% per year
Redemption
Settlement: End of trading day