If you are planning to open a BDO UITF account but have no time to spare to visit their branches, then this post might help you.

Recently, I have just opened one using my online banking and I must say,boy oh boy was that a breeze! 😁 Compared to years ago when I had to visit the branch to apply for one,which by the way took me hours- applying for one online saved me time and money.




Read on and I’ll share the simple steps on how to do it online.

But before you read the step-by-step guide, here are 3 things you need to do:

1. Have the Basic knowledge of UITFs

A Rule of thumb is that before you put your hard-earned money in any investment vehicle, ALWAYS ALWAYS ALWAYS learn how it works until you reach that level of comfort you need to push through with investing.

There is no sense in putting your money in something you know nothing about. If you are able to explain a certain investment vehicle to a kid and he understands, then you’re good to go!

If you are a newbie in UITFS, to know more about the ins and outs of it, here’s my post for beginners :

2. Have an Emergency Fund

Financial preparedness begins with having an emergency fund, which is your back up fund against unforeseen, usually undesirable events.

Investing is indeed a risk. Always be open to the possibility that the money you invested is subject to gains and losses. Where will you pull out funds in case you lose the money you invested? The answer: Emergency Fund

A rule of thumb is to build an emergency fund amounting to around 6 months of your monthly expenses.

3. Have an investment goal in mind

The clearer the goals, the better! Are you investing for your future house, your dream vacation or for your retirement?

How long is the duration of your investment?

How much will you set aside?

How often will you set that money aside?

What are the adjustments in your everyday life that you need to do to achieve this goal?

These are some of the questions you need to ask yourself to make it a S.M.A.R.T Goal.

Learn the correct and effective way of creating a S.M.A.R.T goal here:

MONEY MANAGEMENT for Beginners : 6 EASY TIPS TO MANAGE YOUR MONEY WISELY

Given that you have a BDO savings or current account and it is enrolled to online banking, you can now open a BDO UITF Account online!

Steps on how to open a BDO UITF account online

Here are the simple steps you need to do if you want to open one and start investing.

1. Login to your BDO online banking account. Click HERE to redirect to BDO login page.

BDO login page

2. In your BDO Online Banking account, go to “My Accounts” then click “My Trust Account /Invest Online” then click “Transaction“.

3. Click Transaction and select the investment option you wish to make. In this case, it is the UITF/EIP.

4. Notice that there are multiple tabs for the different UITFs you can choose from. You can choose Regular UITF Subscription or EIP Contribution.

In my case,I chose to invest in Peso EIP Contribution, as seen below:

In Regular UITF Subscription, you need to have a minimum of P10,000 to invest. So every time you want to add-up your investment, you need to have at least P10,000.

In EIP Contribution, you can invest for as low as P1,000 per month. It will be deducted to your savings account automatically on the schedule you chose.




5. Do take note that BDO will require you to read and agree with several agreements. Some of these are the Online Facility Service Agreement, EIP Joining terms and Auto Debit Arrangement.

Take time to read each document and then click Proceed. You need to read these for additional knowledge. Below is the list of documents you will encounter:

6. Take the Investor Profile Questionnaire (IPQ)/Client Suitability Assessment. This is used to assess your risk appetite and financial situation which in return will help propose what kind of UITF suits your personality.

If you already know what type of UITF fund you’re going to invest, you just have to answer this for formality.

After answering the questionnaire, as mentioned, the BDO system will measure your risk profile and offer you the type of UITF you can invest in. You can see below what BDO has recommended for me.

But if you still have no idea on what type of UITF fund is best for you then please answer the questions honestly and it will suggest what’s the best type of UITF for you.

7. Now comes the application details. You will be asked to choose which Savings account or Current account (SA/CA) is to be debited, the type of Fund, amount per contribution, frequency and date of contribution.

In my case, I chose the BDO Equity Fund since that is in line with my risk appetite which is Aggressive.

I chose to be debited twice a month on every 5th and the 15th because I am leaning towards the Peso Cost Averaging Strategy of Investing (PCA)

PCA is investing small amounts consistently over a long period of time. Kumbaga, you are spreading it out.

I prefer PCA instead of investing one big amount in just one time,which others call Lump Sum.

It’s an easy strategy to use. Because I believe having a strategy, no matter how simple it is, is better than no strategy at all.

Curious?? Read more about it here. I’ve also included an example of PCA versus Lump Sum:

https://thethriftypinay.com/2020/05/24/table-of-investments/

This portion varies per person as you may choose to be debited once a month only and perhaps every 10th or the 20th. It really is up to you with what you are most comfortable with 😊

Click Submit.

So every 5th and 15th of the month, BDO will deduct the amount I set from my savings account and will invest that in my UITF account to buy units.

The best part is, it happens automatically, like it’s on autopilot.

Do remember to check from time to time your SA/CA being debited to see if you have fallen below the maintaining balance. Of course if that happens, not only will you not be able to buy units for your UITF, you may be even charged a Below Maintaining Balance Fee.

8. After you have submitted it, just wait for your Contribution date and you will see that BDO will automatically deduct it from your account to purchase units for your UITF.

Don’t forget to check that all the details are correct before you submit.

And that’s just about it! If you’ve made it this far then I congratulate you for working your way to open an account online.

A few pointers:

  • Why did I invest in BDO UITF Peso Equity Fund?

Because for me, this is the best type of UITF that suits my Investment goal. To each his own. Personal Finance is once again, personal.

  • Why did I opt to apply online?

To save time and effort from waiting in line and signing a ton of documents. Why go to the bank when you can do it online?Thanks to online banking, I can do these kind of transactions in the comfort of my own home.

  • Is there a way to know if my fund is earning or losing money?

Yes there is. As soon as you log in, you can see your Trust accounts at a glance. There is a column named Unrealized Gains/Loss that changes everyday and reflects if your fund is earning or not.

 

If you’ve read this far, I hope I provided the Info you need to open a BDO UITF and get started.

I’ll share and provide update on my BDO UITF investment in the future.

I hope this has been informative. Let me know if you have opened one too.

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By Ameena Rey-Franc

Recognized as one of the Top Finance Blogs in the PH. Ameena Rey-Franc (founder of TTP) is a former Banker and BS Accountancy graduate turned Blogger, Keynote Speaker, and entrepreneur. Currently an RFP delegate, she is also the Author of a book about Financial Resilience and has held seminars for reputable companies like GrabFoodPH, Pru Life UK, VISA, JPMorgan Chase& Co., Paypal, Fundline, Moneymax, and many more. The Thrifty Pinay's mission is to empower women to LEARN, EARN, and be FINANCIALLY-INDEPENDENT no matter what life stage they are in.

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