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In laymans term, Mutual fund and UITF will invest your savings or money
in different financial instruments catering to your financial needs and appetite.
They will invest your money in bonds, stocks, money market securities. Mutual
1 http://www.investopedia.com/terms/m/mutualfund.asp
2 http://www.uitf.com.ph/faqs.php#gsc.tab=0
funds are usually offered by a licensed mutual fund agent and is regulated by
the SEC (Securities and Exchange Commission), while UITF are offered by Banks
and is regulated by the PSE (Philippine Stock Exchange).
Stock Investing
Meanwhile, according to Investopedia, a stock is a type of security that signifies
ownership in a corporation and represents a claim on part of the corporations
assets and earnings. There are two main types of Stocks. Firstly, a common
stock which entitles the owner to vote at shareholders' meetings and to receive
dividends. Secondly, Preferred stock generally does not have voting rights, but
has a higher claim on assets and earnings than the common shares. For
example, owners of preferred stock receive dividends before common
shareholders and have priority in the event that a company goes bankrupt and
is liquidated.3
A person would need to open up an account with a stockbroker in order to
participate in the Philippines Stock Market.
Banks An ordinary bank savings account usually gives .25% per annum
rates in its minimum while a time deposit would give out .25% to 1.125% per
annum
Mutual funds and UITF varies from -5% to 16%4
Stocks - -59.62% to 674.55%5
4 http://philpad.com/
5 http://www.pinoymoneytalk.com/top-pse-stocks-performance-2014/