Math of Investment

Introduction

An investment is an asset that is purchased which is intended to generate

income or appreciate in the future. There are many types of investments from

merchandising to bank funds. There are many products that banks offer investment like

time deposit, regular savings, and checking. Aside from these offers there is another

product that a bank can offer, but unfortunately it is unpopular to many Filipinos and this

is the Unit Investment Trust Fund (UITF). Unit Investment Trust Fund is an investment

product of banks where in the money from various investors were put together into one

fund to achieve a specific investment objective.

UITFs are combined investments of different funds, companies, corporations,

invested and diversified to other investments like stocks, bonds, securities, money

market and other funds that are managed by fund experts and fund professionals. Any

person, association, corporation, entity or firm who/which has the legal capacity to

contract or establish a trust may invest in a UITF product. A UITF is an investment

product that most, if not all, commercial banks offer. There are many kinds of UITF

these are Balance Funds, Money Market Funds, Equity Funds and Bond Funds. UITFs

unlike Mutual Funds are easy to open nowadays.

We are going to evaluate the top 5 most performing banks that are best in UITF

Balanced Funds in the Philippines which are Bank of the Philippine Islands (BPI), Land

Bank of the Philippines (LBP), Philippine National Bank (PNB), Rizal Commercial

Banking Corporation (RCBC) and United Coconut Planters Bank (UCPB).

Objectives

 To explain how Unit Investment Trust Fund (UITF) works.

 To identify which bank is the best when it comes to UITF: balance fund.

 To compare the ROI on UITF using the balanced funds of different banks

particularly BPI, LBP, PNB, RCBC, and UCPB.

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 To know what bank was the least affected on the time of the downtrend of

Philippine stock market.

To further...