Will I Lose My UITF Investment When The Bank Closes Down?

From a blog inquirer: “Interesado po ako na mag-invest sa sinasabi ninyo na UITF sa bangko. Pero madami na po akong nabalitaan na mga bangko na nagsarado. Hindi po ba ako mahirapan na kunin ang pera ko kung sakaling magsarado ang bangko na pagkukuhanan ko ng UITF?”

One of our favorite investment vehicles in the Philippines are the UITF’s or unit investment trust funds. This type of bank product that allows the bank’s clients and other investors to avail of affordable pooled funds that are invested in various financial instruments. However, these are not insured by the Philippine Deposit Insurance Corporation or PDIC.

So if and when a bank goes bankrupt and its owners decides to close it down, your investment in their UITF product will also become part of the history, right? Continue reading Will I Lose My UITF Investment When The Bank Closes Down?