Investing 100,000 in a Mutual Fund vs UITF vs VUL Earnings

We’re sharing here how much 100,000 pesos would earn if invested on 3 investment wheels because a reader has requested a comparison of earnings between investing in a Mutual Fund vs UITF and VUL using his 100,000.

Note that this is for comparison purpose only and it’s not a mean to know which is better between the 3 because each product has different investment substance, fund allocation, strategy and management let alone every investor has different status, risk appetite and money goal.

If you’re not yet familiar with UITF, Mutual Funds and VUL, you can get to know them better by going to this post we made: “UITF vs MF vs VUL.”

But if you’d rather go forward this topic, go on and continue reading…

100,000 Investment Earnings Comparison from Mutual Fund vs UITF vs VUL

We used one of the best, most reliable, most established, and most decent funds in this comparison. Also we used the riskiest type of funds because we’re aggressive but we’re always keeping it calm 🙂

For Mutual Fund we used Philequity Fund, for UITF we chose BDO Equity Fund and for VUL we used Sun Life Variable Life Insurance that is tied up with Equity Fund.

In this comparison, we used 100,000 pesos invested for 3 years, from January 18, 2012 to January 18, 2015 to be exact.

We have used the 3-year period because Equity Funds are suitable for this investment horizon.

Here are the yields we have gathered for each fund.

100000 invested on mutual funds vs uitf vs vul

Again this is just a comparison and it won’t guarantee future results. Each investment has different fund allocation and composition. Each may outperform the other any day. The bottom line here is all of them will give us money in the end.

If that is your revenue investing 100,000, what more if you invested 1 million or more millions? The return is awesome! It’s always the more you invest, the more you will gain. Yes, that is also why the rich becomes richer. They don’t let their money sleep on savings and time-deposits. They invest them or they use them expanding new business.

100k roi mutual fund vs uitf vs vul comparison

There are important factors you have to consider before you decide which investment wheel you will use such as your risk appetite, your financial goal and your financial status.

What is risk appetite?

For the sake of newbies here, it is how you can take risks. Investments are very risky. You may not always gain, you may also lose some. To combat risks, you have to invest for long term and diversify your money.

What is financial goal?

Simply how much do you want to earn. Do you want to become multi-millionaire? Perhaps you want to retire early? Or perhaps you want to use your money to build business.

What is financial status?

It will be answered by the following: do you rely on just regular income from your job? How much is your current networth? If you’re not employed right now, can your cash sustain your needs?

If you’re into investments now, it’s always best to diversify your money to different wheels. Make sure you don’t invest everything on one fund alone or on one account. Also make sure, it’s your 20% or 30% money and make sure you have many income generating assets that can shower you abundance in life.

What are these income generating assets I always mention? They are jobs, business and passive income. I will talk about more of them soon. Subscribe here so you won’t miss a new post. It’s free!

“It’s always better to invest some of your money than not to invest at all.”

investing 100,000 in a mutual fund vs uitf vs vul earnings
About Fehl Dungo

Licensed Career Service Professional, tech investor, founder of Philpad, and published author of a poetry book at Barnes&Noble.

191 thoughts on “Investing 100,000 in a Mutual Fund vs UITF vs VUL Earnings”

  1. Hi.

    No doubt about it, Philequity and BDO are top perfomers in their categories.

    IMHO however, and in the matter of “fairness”, you should have chosen a “well-performing” VUL Fund, like Pru Life’s Equity, AXA’s Wealth Equity or Manulife’s Peso Equity Fund. FYI, Sun Life Equity is a laggard among VUL performers. The aforementioned funds performed quite well with absolute returns above 60% for the same period.

    Maybe you can update the above using current 3-year returns…..

    Cheers!

    Reply
    • Hi,

      This is the most updated that I can find in the internet on the report of annualized returns for the referred funds:

      Prulife Equity:
      AXA’s wealth Equity:

      AXA Wealth Equity:
      Manulife Wealth Equity (Growth Fund):

      Sunlife Wealth Equity: BUT NOTE, there was NO ANNUALIZED RETURN shown in the report:

      For BDO-life:
      But maybe Mr. Manuel was referring to BDO UITF Products

      For Philequity: according to the entrepreneur magazine report, the 5-year Annualized ROI is 9.23% with Assets Under Management (AUM) equal to 10,396. If we compute for the Ratio of Annualized ROI per billion of AUM, we will get 0.887 (9.23/10.396).

      For AXA Chinese Tycoon Fund, the ratio would be 0.54 (11.76/21.679)
      For Manulife Peso Growth Fund, the ratio would be 1.15 (10.02/8.74)
      For Manulife Peso Equity Fund, the ratio would be 7.25 (10.3/1.42)

      Generally, larger funds (AUM) are expected to take better advantage of opportunities by the market, given the bigger investment “bets” they can take. However, smaller funds could be more nimble due to their relatively smaller positions. It is for this reason that fund managers in smaller funds have more of a ”stock-picker” mentality. Thus, if a smaller-cap fund has higher annualized returns compared to its benchmark indexes and peer groups, credit goes to the fund managers who exhibited superior security selection or market timing skills.

      However for bond and index funds, the AUM becomes a critical factor because of expenses. In both these cases, the bigger the better. Large funds can distribute fixed expenses over a number of investors. This can bring down the expense ratio and thus reduce its impact on fund returns. Large funds can also negotiate better rates with issuers of bonds.

      I would say that when Fund Performance is the primary criteria when choosing whether to invest in VUL Funds or Mutual Funds, one should closely look at the Annualized Returns (and Assets Under Management) and not only the Absolute Returns.

      Reply
  2. Just to share a little background of myself, I currently have one (1) Investment-Oriented VUL Product, one (1) Protection-Oriented VUL Product, and two (2) Certificate of Participation for UITF.

    I made a comparison matrix of popular VUL policies in the market (Sunlife, Axa, Manulife, Insular Life, Bpi-Philam/Philam Life, Prulife). But first…..

    Among VUL, mutual funds, UITF, and direct stock trading, only VUL offers simultaneous life protection, growth of money thru investing, and the many supplementary benefits (cash assistance when hospitalized, or upon diagnosis of critical illness, etc.)

    With regards to investment, it would also be prudent for starting investors to enter pooled funds instead of direct stock trading unless he has large capital to invest in blue chip stocks, and has the time and diligence to track market movement from time to time, since one can really maximize earnings by trading.

    With regards fund performance among pooled funds (VUL, mutual funds, and UITF), best fund managers in the country are employed in Life Insurance Companies, which offer VUL products, hence annualized returns are higher in VUL by historical performance. And among several VUL products, there are actually few funds that really stand-out. And these funds are available only in select few Insurance Companies.

    If you are interested in availing VUL policy, I suggest you get as many proposals from different Insurance Companies as possible. DO NOT compare the products by the illustrated projected fund values through the years. As stated, these are PROJECTIONS, and all are mandated by Insurance Commission to show projected earning rates at Low (4%), Medium (8%), and High (10%). Different companies also offer different protection coverage periods. Some guarantees up to 99 or 100 years old, some are only up to 80 to 88 years old, so one may be swayed to get a “less expensive” policy, but this is not actually case and when you do the math, he/she is actually paying more for relatively shorter coverage, and this is not only for the life coverage but includes also for supplementary benefits (critical illness, accidental death benefits, etc.)

    Lastly, keep in mind that when Financial Planners present to you a VUL policy which would require limited-term pay (5-yr/7-yr/10-yr), it is NOT guaranteed that you will only pay up to this period. VUL is investment-linked, and all will depend on the actual fund performance. Same goes with regular pay- it is NOT true also that you will pay continuously, so look for a premium holiday feature (with no premium holiday charges).

    If you are interested to learn more, I was able to make a comparison matrix of all VUL products, and these cover 2-groups – Investment-Oriented and Protection-Oriented Products. I had 19 criterias as basis of for my evaluation when choosing which company gives more value to the premium (investment) that I pay, as one will be suprised that some companies charge more than other companies (and this does not include yet the hidden charges- you will only realize that it is hidden when you understand complex terminologies in the VUL policy).

    Example of my criterias are: fund performance (annualized ROI/assets), market capitalization, pricing policy (single or dual), protection coverages, premium and monthly deduction charges, rules on policy lapsation, effect on short-term non-payments, etc… I also made an analysis about the pros and cons of regular pay and limited-term pay. Actually, a lot of Insurance Agents offer limited-term pay since it requires higher minimum, and with higher premium the more commission.

    Thank you.

    Reply
  3. For reference to fund performance of different investment vehicles (VUL, Mutual Funds, and UITF), you may refer to this link: entrepreneur

    One needs to understand the difference of Annualized and Absolute Return. It would be straightforward to make a comparison of different funds and distinguish which funds are superior or perform better if the inception dates and time duration of subject funds are the same.

    Unfortunately in reality, investment funds have different inception dates. You can actually verify inception dates from Fund Fact Sheets. In the example given from this article, all three (3) funds have the same inception dates, and the author used the equity fund of one insurance company. But you will identify in the link I posted earlier that there are actually VUL Funds that perform better than their counterparts, and these VUL Funds are even superior than Mutual and UITF fund counterparts

    Without knowledge of how investments perform, an investor could be committed to an inferior investment and never even know it. An Annualized Return figures the investment’s average annual return or how much the investment has grown on a yearly basis for a specified period of time, while the Absolute Return measures the overall return for the entire period you’ve held the investment since inception date.

    For example, a 5-Year Annualized Return at Year 2018 will tell you how much return your investment has generated on a yearly basis from Year 2013 up to Year 2018 (5-year duration). On the other hand, an Annualized Return Since Inception will tell you the average annual return of your investment since the inception date, hence if the fund’s inception date is Year 2009, that would be average annual return for nine (9) years. Therefore, Annualized Returns are very useful when you want to compare two different funds or investment vehicles (of the same category) where time duration and/or inception dates are different.

    Each Insurance and Investment Company will show you numbers in the way they look attractive to them to sell it to you. But in my experience, annualized returns (with consideration of Assets Under Management) are the most effective way to calculate the returns and compare fund performance of different Variable Life (VUL)-investment linked products.

    Thanks

    Reply
    • Hi sir keil can you share with us the table that you made for comparison since I am planning to get an insurance within the year.

      Thank you

      Reply
  4. Hi Ms. Fehl
    Base on this article. Is this 100k is just one time investment and only 3 years maturity? No monthly dues? B’coz I want this type of investment if there is no monthly dues. What is the name or type of this kind of investment?
    Tnx&Regards,
    Donnie

    Reply
  5. Hi ms fehl,

    I just read the thread re po sa vuls and other investment schemes. Im being offered po kasi of vul. But a bit hesitant. I am 29 years old, and is about to get married in 2 years time. I am currently employed with insurance benefit kaya im hesitant to have investment+insurance and just invest na lang in uitf/mutual fund. However Im thinking if mag resign ako and mwala yung insurance coverage(both life and health) although iniisip ko rn na im single pa nman. Kindlyhelp advise po. Thank you.

    Reply
    • Hi Christine,
      I hope it’s ok if I answer this one for you po.
      To help you decide, why don’t you ask for a Term Life insurance quote from an agent which equals the Face value of the VUL that you are being offered with. Since you did not mention how much is the Total face value of the VUL that they are offering you, let’s assume it’s approx. 2M at 42K annually (at 3,500 per month).

      You can ask for a separate Level Term Life insurance quote with the same face value of 2M and see how much that will cost you. You’ll probably be surprised that it will be around 10-12 times cheaper compared to VUL, as long as you don’t get too many riders.
      Then you can invest the rest in either UITF’s or Mutual funds. You’ll get higher returns by investing the difference yourself in a separate investment. Just a suggestion po. Hope this helps.

      Reply
  6. hi po, i’m planning sana to invest sa BDO UITF equity fund, will it affect my investment po ba if very little or very basic lng ang knowledge mo about UITF before investing? i have more than 100k po kasi sa regular savings account na natutulog lng more than 5 years na and i regret ngayon ko lng nalaman about sa mga ganitong investments. Is it possible po ba na malugi ang ininvest ko kahit na ilong term investment ko siya? At ok lng po ba na itransfer ko at once yung balance ko or if better mag start ako sa minimum investment like 10k lang? Sorry po if marami akong tanong and sana po maliwanagan nyo ako. thnk you and more power. =)

    Reply
    • U better keep ur money , and dont invest anyone of them ,u better used ur money for a business im sure ur 100k will become 300k in one year ,u only have to do is pray and ask God what kind of business u build God will answer , the anvantage is u see clearly how to flow ur money in ur own rule than to trust to professional fund manager , maliwanag na ba?

      Reply
  7. Hi, I’m curious and want to know if anyone has ever lose money in mutual funds? Like in 3 year span example, i will invest 100k is there a percentage that i will really earn more money than lose? Thank you for the answer.

    Reply
    • From my experience, I didn’t yet lose any money from Mutual Funds. I have 3 right now and they still have gains even though the market is not performing well.

      Reply
      • Hi, may i know where you invested your funds? Im starting to invest in money market soon and would appreciate a good recommendation. Thank you.

        Reply
    • Dear Julio,
      I have saved in several difgerent funds and lost lots.
      Problem is the market cannot be predicted.
      In end of 90s IT was going great, as I saw how nice it was, I decided to invest in IT, in just 1 month + 30 %
      Then came IT crash and in a very short time most money was gone.

      Some other funds I still decided to keep though and thought it come back up again, but then came the bank crash in 2006 and 2008 or so, and lots of that money was gone too.

      Save money and use it for what you need I guess is the best.
      Do not use money for what you want or crave, then it will all be gone.

      Anyways, saving with lower risk is what I do now. Using money market funds with very low interest (but I dont lose money)

      Reply
  8. Hi Ma’am Fehl,

    Just a query, I have a Plan which is Sun FlexiLink. I started to avail this last October 29, 2015 and have paid Php 6,000 quarterly. Now my fund value is only Php18,574.68. Is it possible to withdraw this as I observed that my money is decreasing and not growing. I am planning to withdraw this remaining fund value and will start to invest purely on stock market. Please advise

    And also my fiance have started to avail this plan last November 2015 and have paid Php4,500.00 quarterly however to our surprise we have found out and to our surprise that she has only Php -344.00 (negative fund value when we check her account online website.
    Does she still have a money left in her Sunlife to withdraw?

    Hope you can answer all our queries. Thanks much

    Reply
    • Hi, pag VUL kasi may insurance mix + investment kaya ang fund na pinapasok ay may portion sa insurance and investment kaya usually yung expectation ng investor ay di namimeet. However, pag inexplain yan nang mabuti ng agent, ok yan. I will be making a review about my VUL sa Sun Life here in Philpad para full detailed ko maexplain why I choose to invest padin sa ganong insurance. See you there 🙂

      Reply
  9. Hi mam fehl, 1st i’ll like to thank you & more power. Very informative ung blog mo..
    I just want to ask.
    1. .last year I got a vul in prulife uk ..15 yrs to pay annual prem is 47,227 basic cover is 1m…but now I realise na sobrang tagal po pla ng 15yrs…at my age po last 41 na…prang gusto ko na po i cancell or i widraw…to invest ma lang po sa uitf or mutual fund
    2. I have my 2 kids….gusto ko po sanang ipag lagay sa banko sa uitf kahit 15k what kind png uitf po kya?…or much better po ba sa mutual fund po?
    Please help me or guide me mam….gusto ko din ma secure future po ng kids at same time pagtanda ko po may income padin me..thank you so.much & more power mam

    Reply
  10. hi maam Fehl… good day poh… I am 28 yrs old n poh… last april 2016… I started to invest my 100k in BPI-philam and I decided to pay 100k annually.. this investment is 5 years to pay… after 5 years of paying and already completed my premium. I will wait for another 5 years before I can withdraw all of my money… but in case of emergency especially when my money is badly needed in some cases… can I withdraw all of my money even though I still didn’t complete my 5 years of payment?? and what are the risk of this kind of investment… my investment poh is my ksmang insurance.. and it is belong poh s VUL…

    looking forward poh s inyong advice..
    Godbless and more power….

    Reply
      • question ko ito. halimbawa si fund manager A ng Metrobank, may mga investors (X,Y,Z) invested nya sa mining specific sa Abra, then may another batch of investors ulet (M,V,P) invested naman niya yung pera sa Lepanto. ang tanong ko ito may gainers and losers at the end of the day, paano ko malalaman kung yung investment ko lumago o nalugi?

        Reply
  11. Hi, Fehl, first of all thank you very much for your effort for giving us an ideas about investment its really appreciated.
    Actually, me and my wife have already VUL SGL-Opportunity Fund (RCBC) for almost 3 yrs now (500k/each). Can you please tell us how our money grows at his stage. Thanks!

    Reply
  12. Hello Fehl I would like to know if it is possible to invest 100,000.00 pesos in “one shot” in a UITF account and keep it invested there for few years? I know that in BDO you can invest monthly & they auto debit your money but what if you only want to do it all at once? Would that be possible?

    Thank You!

    Reply
  13. Hi Ms. Fehl. Thanks for the informative post.

    Can you help me with my situation? I have 30,000 which i plan to invest and additional monthly saving of around 3,000-5,000 for the same purpose. I have no immediate plans for this saving, I just want to save and hopefully get a good return from it. Where do you think should I invest it? Thank you in advance Ms. Fehl!

    Btw, I’m more of an average investor when it comes to risk appetite. maybe leaning towards conservative mainly because lack of familiarity of these kind of investments. Again thanks Ms. Fehl.

    Reply
    • You can invest them on Balanced Funds. These funds are suitable for semi aggressive types and if you won’t be needing your money right away because you want to build more profit from it

      Reply
  14. Miss Fehl, last october i invested at bpi, which is philippine high dividend , i deposited 30,000 that time the navpu was 123, thnx God as of today the mavpu is 129.72. thank you Miss Fehl , for your knowledge that you shared to us.

    Reply
  15. Hi Fehl,

    Good day just come across to your blog and am interested to join this idea.

    By the way how to start in Philequity can you help me.-Thank you

    Cheers,

    Ayts

    Reply
  16. Hi there,

    Thanks for the very informative article! I have a little bit of passive income in the Philippines that I would like to invest. Have ETFs and mutual funds here in Canada so my idea is to invest in mutual funds there as they are more familiar.

    But what are the actual differences between mutual funds (in the Philippines) and UITFs and VULs…eg would a UITF pay dividends from equity like mutual fund? Also, are your figures in the article before or after MER and management costs?

    Thanks in advance, will subscribe to this website.

    Regards,

    Eric

    Reply
  17. Hi Fehl, I have all of my savings just sitting in the bank, then around 25% of it is in time deposit (2 accounts – 1 small account that I renew every year and 1 big account that I renew every 6 months). When my friend learned about it he told me to invest my money rather than leave it sitting in the bank. What can you suggest I invest in? Thanks!

    Reply
  18. Hi ms Fehl! Let me thank you first for sharing your knowledge with us, really inspires me to put my hard earned money in the right place.I am currently working here in Qatar and am planning to invest in mutual fund with 5 year horizon when I take my vacation this year. But I’m kinda hesitant because of the global ecomonic instability. Would you recommend me to start investing now considering the global economic status or wait for it to stabilize? any thoughts? Thanks in advance!

    Reply
  19. hi ms. fehl. i just recently invested in sunlife VUL. now that i got my insurance covered. im thinking of investing some money. but im not sure where to invest. which do you think is better, sunlife’s mutual fund or bank uitf?

    Reply
  20. Ms. Fehl

    Please help. Nalilito talaga ako sa UITF and MF.

    Planning to open UITF (money or balance market), kapag nag invest po ako monthly for 1-3 years.

    *ok lang po bang di monthly mag top up or add ng placement?

    * can i get my profit/kita agad or need talaga tapusin holding period?

    * cash ko ba makukuha or do i need to sell pa my units?

    Sana po masagot mo ito. Thanks in advance

    Reply
    • Hi. Yes, for MF you have the choice when to add funds. For UITF, it depends on the kind of UITF. If you redeem before the holding period, you’ll be charged early redemption fee. Converted to cash according to NAVPU

      Reply
  21. Hi Ms. Fehl,

    I just want to clarify. Yung figures po na nasa itaas, ito lang po yung Return of Investment from 100k tama po? Pero hindi pa po dito kasama yung makukuha sa Insurance from VUL in case may mangyari sa isang tao? Kumbaga mas maliit yung profit sa VUL pero kasama kasi sa binabayaran mo yung Insurance? Thank you!

    Reply
    • You could also lose it because a mutual fund company is also considered a corporation in a business sense but if you have chosen one of the best in the country that is very established like Sun Life, Philam (PAMI), Philequity etc. you won’t go that way

      Reply
  22. Hi Ms. Fehl,

    Just wanted to ask, if I do not have an insurance yet but I do really like to invest in stock market, is it right to invest first in the stock market rather than VUL? My friends are always telling me to avail a VUL but I am hesitant as of now.. What advice can you give to me as an experienced investor?

    Thanks a lot in advance and God bless!

    Reply
    • Hi. VUL is Investment + Insurance so you need more funds for it, if you want stocks only, you are free to go below or beyond your monthly budget. The answer depends upon on your objective as an investor, your investment knowledge, your risk appetite and your capital. With VUL, you have to pay premiums and they are usually expensive but the good thing is you are covered with diff. insurance.

      Reply
  23. Hi Ms Fehl.
    Thanks for the informative blog. Im juat learning how to invest in mutual fund same as stocks. If im going to join in mutual fund which company is better?pgilequity or sunlife, because im a bit confuse on the charges in mf.

    Reply
    • It depends on the type of fund suitable to your Risk Profile and investment horizon. You can also check out our review about different Mutual Funds at dailypik.com

      Reply
      • hi ms.fehl,
        your blog is very helpful especially for us OFW’s. i’m planning to invest in mutual fund with a 3-5yr investment horizon..perhaps u could enlighten me do i need to just let it grow there or topping it up monthly is advisable?also ano po ung difference sa redeeming and selling my shares?i read once na if u don’t sell your shares wla dn kita ung investment?

        Reply
  24. I am OFW age 42, I plan to invest 100,000.00 in mutual Fund, long term, Kindly advise me, what kind of mutual fund ang pede kong applyan at anong mutual fund company

    Thanks

    Reply

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