Another Unit Investment Trust Fund was introduced recently
by the Bank of Philippine Islands for its growing UITF investors. The said fund,
which was launch on May 20, 2013, is named BPI Philippine Equity Index Fund.
The said index fund intends to provide a return that tracks the performance of
the Philippine Stock Exchange Index (PSEi), the main index of the Philippine
Stock Exchange.
An index fund, by the way, is a trust fund that aims to match
or shadow the performance of a certain market index. The market index is composed
of different securities that represent the market’s different segment. The portfolio
manager of the index fund replicates the performance of a certain market index
rather than actively trading securities based on his view of the market to
accomplish the given fund’s objectives.
The BPI Philippine Equity Index Fund has the following fund
features:
Type of
Fund: Equity Index Fund
Launch Date:
May 20, 2013
Minimum
Investment Amount: P10,000.00
Minimum
Transaction Amount: P1,000.00
Trust Fee:
1.50% per year
Minimum
Holding Period: NONE
Since the said
fund deals mostly with equities, the BPI Philippine Equity Index Fund is more
appropriate for investors with an aggressive risk profile and with long term
horizons.
Existing BPI fund investors can readily subscribe to this new fund by
visiting their BPI branch.
However, if
you are a new client, you are required to open a BPI deposit or savings account for the purpose of settlements for your investment fund transactions. You are also required to take the Client
Suitability Assessment Test (CST) to determine your risk profile. This will
help the BPI Marketing Personnel to advice what types of funds are suitable for
you given the result of your client suitability assessment.
The BPI Philippine Equity Index Fund is also available under
the Regular Subscription Plan (RSP) where you can regularly invest with the fund for
as low as P1,000 every month or every quarter depending on your preference.