A Guide To Investing In Bdo Mutual Funds

BDO offers a range of investment options for those looking to grow their money and achieve their financial goals. One of the most popular options is the BDO Easy Investment Plan (EIP), a wealth build-up program that allows individuals to automatically invest from their savings regularly and affordably. With the EIP, investors can choose how much and when to invest, starting from as low as ₱1,000 or $200 a month. The program provides access to a wide range of Unit Investment Trust Funds (UITFs), which are pooled investments allowing investors to participate in assets typically available only to larger investors. BDO also offers other investment options, such as the BDO Personal Equity and Retirement Account (PERA) for retirement planning and various UITF products, including peso-denominated and dollar-denominated funds.

How to open a BDO UITF account

To open a BDO UITF account, you can either visit a BDO branch or log in to your BDO online banking account. Here are the steps to open an account online:

• Log in to BDO Online Banking via a web browser.
• Access BDO Invest Online by going to "My Accounts" on the sidebar navigation menu, then click on "My Trust Account/Invest Online".
• Go to "Transaction" and choose "Regular UITF Subscription".
• Answer the Client Suitability Assessment (CSA) to determine your investor personality and identify the BDO UITFs that fit your risk appetite.
• Start investing by choosing the BDO UITF you want to invest in.

The minimum investment amount for BDO UITFs is ₱10,000 or $500. However, with the BDO Easy Investment Plan (EIP), you can start investing for as low as ₱1,000 or $200 per month. The EIP allows you to automatically invest from your savings regularly and gives you control over how much and when to invest in the UITF of your choice.

BDO's Easy Investment Plan (EIP)

Here's how the EIP works:

Decide on the details of your investment program:

• Determine how much you want to invest regularly. You can start with as little as ₱1,000 per month for Peso-denominated UITFs or $200 per month for U.S. Dollar-denominated UITFs.
• Choose how often and when you want to be debited for this investment. You can schedule your debit either once or twice a month (every 5th, 10th, 15th, 20th, 25th, or 30th of the month).
• Select the UITF that aligns with your short, medium, and long-term goals.

Once you've decided on the amount, frequency, debit dates, and chosen your UITF, the program will automatically invest from your savings at your chosen frequency.

The EIP offers several benefits:

• Automatic Savings and Investment: The auto-debit facility ensures that a specified amount is saved and invested each month, saving you time and effort.
• Access to a Wide Range of UITFs: UITFs (Unit Investment Trust Funds) allow investors to participate in a pooled investment, investing in assets typically available only to larger investors.
• Professional Fund Management: BDO's experienced fund managers oversee the UITFs, ensuring that your investments are prudently managed.

You can easily open a BDO EIP account online or by visiting any BDO branch. Enrollment is free, and you can start investing for as little as ₱1,000 or $200 per month.

How to choose a UITF fund

When choosing a UITF fund, there are several factors to consider. Firstly, it is important to assess your financial goals and determine how much time you have to invest. Generally, funds invested for longer periods have higher returns but are also riskier due to exposure to price movements and interest rate volatility. On the other hand, short-term investments are less volatile and risky. Thus, you should consider how long you can afford to keep your funds invested and your risk tolerance.

Secondly, it is essential to understand the different types of UITF funds available. BDO offers various funds, including Money Market Funds, Bond Funds, Balanced Funds, and Equity Funds, each with varying levels of risk and return. Money Market Funds are suitable for moderate investors seeking short-term investments, while Bond Funds cater to those with longer investment horizons. Balanced Funds target investors seeking higher returns by investing in both fixed-income securities and equities. Equity Funds are designed for aggressive investors aiming for long-term capital growth.

Thirdly, it is recommended to seek professional advice and conduct a Client Suitability Assessment (CSA). This assessment will help you understand your investor profile, including your investment objectives, experience, risk tolerance, and liquidity requirements. The results of the CSA will guide you in selecting the most suitable UITF fund that aligns with your financial goals and risk appetite.

Lastly, consider the fees and charges associated with investing in UITF funds. While enrollment in the BDO Easy Investment Plan (EIP) is free, there may be management fees, trust fees, and early redemption fees. It is important to understand all the costs involved before making a decision.

By carefully considering your financial goals, time horizon, risk tolerance, and seeking professional advice, you can make an informed decision when choosing a UITF fund that aligns with your investment objectives.

How to enrol in EIP

To enrol in the BDO Easy Investment Plan (EIP), you can either open an EIP account online or visit any BDO branch.

If you are enrolling through a BDO branch, bring two valid IDs. If you already have a BDO Personal Online Banking Account, you may access BDO Invest Online to enrol in EIP.

• Log in to your BDO Online Banking account
• Access BDO Invest Online
• Go to "My Accounts" on the sidebar navigation menu, then click "My Trust Account/Invest Online"
• Go to "Transaction", then choose "EIP Contribution / Unsubscription"
• Answer the Client Suitability Assessment (CSA) to find out what kind of investor you are and which UITFs could suit your investment style
• Input the following contribution details:

• Fund
• Amount per contribution – a minimum of PHP1,000 or USD200
• Frequency – once or twice a month
• Day(s) of contribution – 5th, 10th, 15th, 20th, 25th, or 30th
• Contribution start date – first contribution date
• Account number – savings or checking account where your funds will be automatically debited

Check the details, then click submit

Enrolling in EIP is free, and you can start investing for as low as ₱1,000 or $200 a month.

How to monitor your investments

Monitoring your investments is an important part of managing your financial portfolio. Here are some ways you can monitor your investments with BDO:

• Utilize the BDO Invest Online Facility: BDO offers an online platform that allows you to monitor your Unit Investment Trust Funds (UITF) performance. You can log in to your BDO Online Banking account to access this facility and view the latest updates on your investments.
• Subscribe to BDO's Research and Reports: BDO provides regular reports and commentaries to keep you informed about the financial markets. These include daily news, weekly assessments, and market trend analyses. By subscribing to these, you can stay abreast of market movements and make more informed investment decisions.
• Review the Key Information and Investment Disclosure Statements (KIIDS): BDO publishes monthly KIIDS for each UITF, providing insights into fund performance and features. These statements offer valuable information to help you understand your investment choices better.
• Monitor Your Fund's Performance: BDO's Trust and Investments Group provides updates on how your funds are performing. You can refer to these updates to track the growth of your investments and identify areas that may require adjustments.
• Stay Informed with Portfolios and Perspectives: BDO's fund managers provide recommendations on portfolio allocation. By following these insights, you can gain a better understanding of how your investments are distributed across different assets and make more strategic decisions.
• Seek Guidance from BDO's Investment Professionals: BDO has a team of seasoned investment professionals who can provide guidance and address your queries. You can contact your assigned Trust Marketing Officer or the Branch Manager/Marketing Officer at your servicing branch for personalized assistance.
• Enroll in the BDO Easy Investment Plan (EIP): The EIP is a wealth build-up program that helps you develop a habit of saving and investing. It provides solutions to common concerns faced by rookie investors and allows you to monitor your investments conveniently. You can enroll through any BDO branch or via the BDO Invest Online platform.
• Utilize the Client Suitability Assessment (CSA): When enrolling in the EIP, you will undergo a CSA to understand your investor personality, including your investment objectives, experience, risk appetite, and liquidity requirements. This assessment helps determine the most suitable UITF products for your investment strategy.

Frequently asked questions