Bpi Short-Term Fund: A Smart Investment Strategy

The BPI Short Term Fund is an open-end unit trust incorporated in the Philippines. The fund aims to generate liquidity and stable income through a diversified portfolio of primarily short-term fixed-income investments. It is ideal for first-time investors as it is primarily invested in time deposits and money market investments. The fund offers stable price movement with minimal volatility and no early redemption penalty. To start investing in the BPI Short Term Fund, you can open an investment account through the BPI app or online platform and review the minimum initial investment requirements.

How to open an investment account with BPI

To open an investment account with BPI, you can start your investment journey by opening an account online through the BPI app.

BPI offers a range of investment funds, including the BPI Short-Term Fund, which is ideal for first-time investors. This fund seeks to provide liquidity and stable income through a diversified portfolio of primarily short-term fixed-income investments, such as time deposits and money market investments. It offers stable price movement with minimal volatility and the freedom to withdraw your investment on demand without pre-termination fees and charges.

The BPI US Dollar Short-Term Fund is another option, which is ideal for first-time dollar investors or those looking to park funds for future investments. This fund is invested primarily in low-risk fixed-income assets and is denominated in US dollars.

BPI also offers moderately aggressive and aggressive funds for investors seeking higher returns and willing to take on more risk. These funds aim to increase the value of the investor's portfolio while protecting their assets or achieving long-term capital growth.

Before investing, be sure to understand the risks and benefits associated with the products. Earnings are not assured, and the principal amount invested is exposed to the risk of loss.

The minimum investment amount for BPI short-term funds

To start investing in the BPI Short-Term Fund, you must first open an investment account. The minimum initial investment amount for the BPI Short-Term Fund is Php 1,000. This amount can be used to build up your wealth by investing regularly and growing your investment.

The BPI Short-Term Fund is ideal for first-time investors as it is invested primarily in time deposits and money market investments. It offers stable price movement with minimal volatility. You can top up your investments automatically monthly or quarterly through the Regular Subscription Plan (RSP).

The fund seeks to provide liquidity and stable income through a diversified portfolio of primarily short-term fixed-income investments. The benchmark of the fund is the 91-day Treasury Bill, net of tax.

It is important to note that Unit Investment Trust Funds (UITFs) are not deposit products and are not an obligation of, or guaranteed, or insured by BPI Wealth or Bank of the Philippine Islands (BPI). The yield and potential yields cannot be guaranteed, and any income or loss arising from market fluctuations is for the account of the investor.

The benefits of investing in BPI short-term funds

Investing in BPI short-term funds can be a great way to build your wealth and achieve your financial goals. Here are some benefits of investing in BPI short-term funds:

Liquidity and Stable Income

The BPI Short-Term Fund seeks to provide liquidity and stable income for investors. The fund invests primarily in short-term fixed-income instruments, such as time deposits and money market investments, to generate consistent returns with minimal volatility. This makes it an ideal investment option for those seeking stable and predictable returns.

Diversification

The fund offers a diversified portfolio of investments, which can help to mitigate risk. By spreading your investments across various assets, you can reduce the impact of market fluctuations and protect your capital. This diversification can provide a more stable investment journey and potentially enhance your overall returns.

Ideal for First-Time Investors

BPI short-term funds are well-suited for those who are new to investing. The low-risk nature of the investments, combined with the stable price movement, makes it a less volatile option for beginners. You can start investing with a minimum initial investment and gradually build your wealth over time.

Flexibility and Accessibility

BPI short-term funds offer a high level of flexibility. You can top up your investments automatically through the Regular Subscription Plan (RSP) on a monthly or quarterly basis. Additionally, you have the option to withdraw your investment on demand without incurring pre-termination fees and charges. This accessibility allows you to manage your investments according to your financial needs and goals.

Benchmark Performance

The BPI Short-Term Fund has a benchmark of the 91-day Treasury Bill, net of tax. This provides a reference point for investors to evaluate the fund's performance. By comparing the fund's returns to this benchmark, investors can assess whether the fund is meeting its objectives and make informed decisions about their investments.

Investing in BPI short-term funds offers a range of benefits, including liquidity, stable income, diversification, flexibility, and accessibility. It is well-suited for first-time investors seeking a low-risk and stable investment option. Remember to consider your financial goals, risk tolerance, and conduct thorough research before making any investment decisions.

How to withdraw your investment from BPI short-term funds

To withdraw your investment from BPI short-term funds, you can follow these steps:

Online

• Log in to your BPI Trade Online account.
• On the main dashboard, click "Services", then select "eWithdrawal".
• Click "Withdrawal Request" and enter the amount you wish to withdraw.
• Click on "Withdrawal Details" to review the terms and conditions.
• Tick the "Acknowledge" box and then click "Submit".
• Enter your 6-digit trading pin and submit again.

Via the BPI Trade App

• Tap "Services" in the upper left corner of the app.
• This will open the eWithdrawal screen.
• Click "Withdrawal Request" and enter the amount.
• Click on "Withdrawal Details" to review the terms and conditions.
• Tick the "Acknowledge" box and submit.
• Enter your 6-digit trading pin and submit again.

Note that the amount to be withdrawn cannot be greater than the withdrawable amount, and it is advisable to keep at least PHP 1000.00 in your BPI Trade Settlement Account to cover any necessary fees.

Understanding the risks associated with BPI short-term funds

BPI short-term funds are not deposit products, and as such, they come with a certain level of risk. While these funds are ideal for first-time investors, it is important to understand the potential risks involved before investing.

One of the primary risks is the possibility of losing some or all of the principal amount invested. Market fluctuations and price volatility can impact the value of the units of participation in the fund, and when redeemed, they may be worth less than the initial investment. This means that there is no guarantee that you will get back the same amount you put in.

Additionally, the yield and potential yields of these funds cannot be guaranteed. Any income or loss arising from market fluctuations and price volatility is for the account of the investor. This means that even if the fund invests in low-risk fixed-income assets, there is still a chance of losing money.

Furthermore, BPI short-term funds are not an obligation of, or guaranteed or insured by, BPI Wealth or Bank of the Philippine Islands (BPI) or its affiliates or subsidiaries. They are also not insured by the Philippine Deposit Insurance Corporation (PDIC). This means that if BPI Wealth or BPI fails or is unable to meet its obligations, investors may lose their investment.

It is important to carefully consider these risks and seek to understand the investment products before investing. Investors should read the Declaration of Trust of the relevant fund and contact BPI Wealth for any inquiries or concerns.

Frequently asked questions