The BDO Easy Investment Plan (EIP)

I was looking at the website of BDO to check on the Net Asset Value (NAV) when I saw this:

Correct me if I'm wrong but is BDO the first bank to introduce this new scheme for UITFs?  Please enlighten me.

Before I expound on BDO's Easy Investment Plan (EIP), I would like to refresh you on UITFs.

UITF or Unit Investment Trust Fund is actually an improved version of the existing Common Trust Fund (CTF) which is a collective investment scheme similar to a mutual fund that pools the investments of small investors into a larger fund under professional management that is able to access more superior investment opportunities that are not normally available to individual retail players. The investors share in the gains and losses after expenses of the fund, proportionate to their respective participations in the pool. 

Source: BSP website.

Most banks offer UITF products.  Personally, I invest in BDO Bond Funds for my short-term fund since this is a safer investment among UITFs.  

Going back to BDO's EIP, this is indeed good news to all investors and depositors.  With just a small amount of investment, your money can grow and earn higher interests if done regularly over a period of time. 

Under this arrangement, an investor enrolls his savings or payroll account in a BDO automatic debit facility wherein a fixed amount/s (with a minimum of Php1,000.00) per month is/are deducted for the purpose of immediately investing in selected BDO UITFs.

Advantages of the EIP:

• The power of “compound interest” which refers to interest earned on principal plus interest that was earned earlier.  

  To reiterate, the great Albert Einstein said that compound interest is "the greatest mathematical discovery of all time and the most powerful force in the universe."

  
  
  
  image source
  

• Your regular, fixed amounts will build your portfolio in the long term, effectively averaging costs over time.  This is called "cost averaging."  This simply means that you need not monitor market conditions.  Just continue to invest regularly whether the market is up or down.

Here’s how to join the EIP, in just three easy steps as stated in BDO's website:

1. Fill out the EIP Application Form and enroll your BDO Savings/Checking Account in the EIP at any BDO branch.

2. Decide on the following details of your contribution:

     • Amount: Minimum of Php1,000.00 per contribution

     • Frequency and schedule: Once a month (5th, 10th, 15th, 20th, 25th or the 30th) or Twice a month (every 5th & 20th, 10th and 25th, or 15th & 30th)

3. Choose what type of UITF is best for you: BDO Fixed Income Fund, BDO Peso Balanced Fund or the BDO Equity Fund

Rush to your nearest BDO branch today!

For inquiries, please call Trust and Investments Group at 840-7000 locals 4265, 4244, 4255 and 7032 or send an e-mail to trustandinvestmentsgroup@bdo.com.ph.