How to Compute Gain or Loss from BDO EIP Investment

You might have a UITF (Unit Investment Trust Fund) through BDO EIP (Easy Investment Plan) or you're just planning to get one (that's why you already have an idea perhaps), but the computation of gain/loss from this investment is still foreign to you.  Well, hope this post will shed some light.

First, investment status can be checked through online banking as shown below (just click the photo for a larger view).

Transaction Date >> the first row is the date of COP (Confirmation of Participation) which will be provided every time investment reaches P10,000 in value.  >> second and succeeding rows are the date account was debited.

Invested Amount >> P1,000 every 20th of the month or the last banking day before the 20th (if 20th falls on a weekend or holiday).

No of units >> computation will be shown here.

Amount as of (03/23/2016) >> the first row is the present value of COP if redeemed on said date.  >> second and succeeding rows are the present value of each amount invested.

Btw, this is a BDO Peso Balanced Fund transaction and shown for illustration purposes only.  Data may vary depending on investor's preference, e.g., amount to invest/debit from account, date of ADA (Automatic Debit Arrangement), etc.

Computation of No of Units (Units of Participation) and Unrealized Gain/(Loss)

In the first row (above photo), the original (actual) participation amount is P11,000, sum of amount debited which is P1,000 each from 10/20/14 to 08/20/15.  While, computation of units of participation using Excel is illustrated below (just click the photo for a larger view).

Current and historical NAVPU (Net Asset Value Per Unit) can be obtained from BDO Website.  Each row (transaction) No of Units is computed as Amount Debited divided by NAVPU on the date of actual debit, e.g., P1,000/3,923.1780=0.2549 (#1).  And, any gain or loss is a paper gain/loss unless COP is redeemed.

You may notice that the sample above incurred a paper loss.  This was maybe due to stock market's bearish period from China woes and Fed talks of rate hike.  At present, the NAVPU is increasing/stabilizing with strong PSEi (Philippine Stock Exchange Index).  Still (IMHO), investing in such fund is not a bad idea.  Caveat :)

P.S.

This post is for educational purposes only and is neither a paid advertisement nor an endorsement of such financial product.