Are you looking for a bank product that could give you money higher than what time deposits could give you? If yes, I will introduce you to our new friend here: Money Market Funds.
Let’s face it, we can’t almost feel the interest income earned from our regular savings account. Sometimes ATM and bank transaction fees are much higher than these little interests. And if you less withholding taxes, you barely earn a thing.
That is why people turn to time deposits. But there are other bank products better than time deposits. One of them is money market fund and I’m making a review here about one of the best money market funds from the banks Trust Empire, PNB Dream Builder Money Market Fund.
What is PNB Dream Builder Money Market Fund?
Money Market Funds are suitable for conservative investors because they have the lowest risks among all types of investments. They are usually invested on short-term deposits and government securities making them suitable for short-term investment horizon.
PNB Dream Builder Money Market Fund is one of their 3 money market funds. Unlike the two, Dream Builder Fund is the most affordable fund in terms of initial investment, with only P2000 minimum requirement to open an account.
In addition from the requirements above, this fund also allows minimum additional participation of P2000 which is very cool. If you make an initial placement of 5,000 for example, you can add up more funds of 5000 if you wish via PNB Auto Investment Plan (AIP) using PNB UITF Online banking facility.
I honestly don’t know if other banks allow that for their UITF unless what you opened was AIP or EIP type at the beginning of your UITF opening.
How to Know If PNB Dream Builder Money Market Fund is Suitable for You?
- You can only take small risk
- You want to keep your money in the bank and gain income higher than TD and SA at the same time
- You are only investing for short-term
- You used to like Time Deposits so much
By the way, this investment is not for OFWs and non-residents. The good news is that you can open this UITF account online via PNB online banking if you have existing PNB account.
Am still waiting for the Good News that you have said from one of your post.
Really cool learning this stuff. I did actually enrolled in PNB UITF, just waiting for approval..
God Bless!
The good news is now posted. It’s in our homepage. You can also visit http://dailypik.com
always like to read your blogs..thank u for always giving a tips for financial status..
Godbless always..
My pleasure to share them 🙂 Thank you for reading and visiting!
Hi Miss Fhel,
I can’t emphasize enough how addicted I am in reading your blog ever since I came across it a few days ago. I haven’t been able to read any other blog than yours I feel like I’ll be able to finish your whole blog anytime soon as I spend hours and hours here. Thank you so much for having this site, I have learned a lot in just a short span of time. Keep it up, Hun.
Anyway, I have a question. I’ve been doing my research for weeks, probably months now about investing in the Philippines. I am a 28 year old guy working abroad (Filipino obviously), and don’t have much options but the recently launched online UITF program offered by PNB. I say I don’t have much options because of several factors like not having a Philippine bank account and could not open one here in Saudi Arabia since all the Philippine banks here have stopped their services for unknown reasons, and also could not apply for an account in COL since they require TIN which I don’t have yet (or maybe I had one since I worked for a month in a call centre in Makati before I went abroad but lost it). Anyway, PNB is the only Philippine bank offering their services here, so that’s the only option I have. I’ll open an account with them and I plan to invest in UITF high dividend fund. I have half a million pesos I’m more than willing to invest right now so I’m thinking if it’s smart to invest all that money in the UITF I mentioned (as I later on plan to open an account in COL and BDO once I visit the Philippines sometime next year). I know that diversification is important but I plan to do that next time once I get my COL and other accounts running. I just don’t wanna waste precious time as this money sits in my bank and not doing anything. Please give me an idea on what I should do in my situation right now. Should I invest that much money in the high dividend fund on a one-time deposit? Looking forward to hearing from you!
Also, is there a chance you would know if high dividend fund is offered for OFWs?
P.S. I’m the same guy who last asked a question on this link (Paul). I figured I change my name to have a distinction and opted to subscribe to your blog too since I know I’m gonna be staying here for good and gonna be commenting and asking hundreds of questions soon. :p
Thanks in advance!
Hi Paul. Wow, I’m so flattered with your comments here. Thank you for that. 🙂 I want to say congrats to your investment plan. Hardworking people like you deserve rewards from the fruits of their labor. PNB is one of the big banks I always like sharing here as you noticed coz I had and have impressive banking experience with them. Their UITFs are also performing great. Since their online facility favors your situation, I would recommend you invest with them. I always say to everyone to complete this pack: UITF + MF + Stocks for paper assets and investments. PNB Dream Money Market Funds however are not offered to OFWs and non-residents because BSP prohibits investments with SDAs for non-residents. You can choose their other UITFs like High Dividend Equity Fund or Enhanced Phil-index Reference Fund which follows PSEi components. If you have 500K, I suggest you open different investment products. 300K to 2 Equity funds would be great and 200 for your own stocks. You can open COL account even if you’re OFW and non-resident. But you really need your TIN. You can ask your family or relative here to verify your TIN on your behalf. Just send them authorization letter I think that would work. I think you already ahve existing TIN because you were working in the call center like you mentioned.
I have one upcoming great news about investments here soon. You will not missed anything when I announced if you subscribe here. God bless and thanks a lot!
Thanks Miss Fehl! I’ll definitely follow your advice. I’m just happy to hear that High Dividend Equity Fund is offered for OFWs as it is my planned investment. May God bless you! Will be waiting for your next posts! ^_^
My pleasure! 🙂 Happy Holidays!
Hi. What do you mean po by not for OFW’s? I’m an OFW po, how would they categorize that? If I had an account in PNB, they would never know if I’m in the country or not right? How does that work? Does it depend on whether or not the account was opened in the Philippines? Coz I plan to open an account here in Saudi Arabia in PNB for my UITF investments.
And may I ask if you know if High Dividend Equity Fund in PNB is in offered to OFWs as well? Thanks po.
Hello po. Pwd po ba ito sa mga bata? Like 14 and 9. Thank you po.
Yes, open In-Trust-For account for them
Ty po miss Fehl. I really like reading po your blog. Im an ofw, but by jan balik abroad na. Before balak kong pumasok sa stocks at invest sa mutual funds for my siblings. Is his possible pokahit low money as start tapos hulugan after? Hope to read more blogs from you here po. Thank you at Godbless.
yes, you can invest even if you only put 1k and above what is important you do it regularly
Good day pwede po bang magtanong? salamat po.
Hi again, Fehl.
How much is the earning for this Money Market Fund compared to TD and Savings? How short is the time? 1 month? I’m reading your articles every now and then, while working so I can know where to allocate my 13th month. haha.
Thanks again.
In experience, we invested 150K in PNB Prime Peso Money Market Fund 5 months ago and it earned 1,010.94 as of now (looking at my PNB online banking). Compared to Time Deposit, we can redeem this anytime and online. PNB Dream Builder is also Money Market Fund.
Good day po.. Ask lang po.. non-resident? not available sa non-resident sa philippines ba ang ibig sabihin nyan ? :0
This investment product is not offered and available to OFWs and non-residents