BDO ERP (Easy Redemption Plan) – UITF Review and Requirements

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A Unit Investment Trust Fund (UITF) is an open-ended trust fund denominated in pesos or any acceptable currency. This is operated and administered by a trust entity and made available by participation. When we say open-ended trust fund, it allows clients to invest or redeem their investments at any time subject to guidelines set forth and governed by a Declaration of Trust (or Plan Rules) which contains the investment objectives of the  UITF as well as the mechanics for investing, operating, and administering the fund.


Most UITFs are considered to be medium to long-term investments. Clients considering to invest in UITFs must have the financial resources to stay invested for a reasonable period of time in order. Why? Because it is for them to maximize earnings’ potentials. If the funds to be invested will be needed by the client in the immediate future, the UITFs may not be a suitable investment vehicle for such client. Most banks offers UITF investments and one of these banks is Banco De Oro (BDO); it is called BDO ERP.

Read: How to Invest or Buy Stocks in Philippines Stock Market

What is BDO Easy Redemption Plan (BDO ERP)?

BDO ERP is a type of UITF that allows participants to automatically receive regular cash pay-outs from their Unit Investment Trust Fund.

The available UITF for ERP as of now is BDO Peso Money Market Fund which you can use for a variety of reasons.

The target market are:

  • Individuals and Corporations with programmed disbursements
  • Retired individuals who want to program their retirement / investment funds to give out regular cash for living expenses.

For instance, you have 1 million BDO Peso Money Market Fund and you want to use this trust fund to give monthly allowance for your son but you don’t want to withdraw or redeem all of your units in your UITF; you want your remaining UITF to be earning at the same time. If you want something like this, then BDO ERP is perfect for you.

The minimum cash out for BDO Easy Redemption Plan is P1,000/pay-out. The maintaining balance is the same as the participant’s designated pay-out amount but not lower than the minimum pay-out amount of Php1,000.

The frequency and schedule of Pay-outs is 1x or 2x a month – every 5th, 10th 15th, 20th 25th or 30th.

So if you have 1 million for example and you want to redeem 20,000 monthly (say every 10th of the month) from your Peso Money Market Fund UITF and you want this 20,000 to be credited to your chosen savings account, you can do this opening BDO Easy Redemption Plan.


I know you are wondering what will happen if there is no more cash equivalent remaining in your UITF or what will happen when the remaining amount in your ERP falls below the designated pay out? To answer that, BDO will automatically unsubscribe you for the ERP. If there are any proceeds remaining on your account, the units will be redeemed and will be credited back to your assigned current or savings account.

What are the requirements for BDO Easy Redemption Plan?

  • You must have an outstanding BDO Peso Money Market Fund
  • Your COP (Confirmation/s of Participation) from your BDO Peso Money Market Fund
  • Accomplish all forms required at your BDO branch (ERP Enrollment Form, Change/Request, ERP joining Terms and Conditions)
  • Enrollment fee of P500

How do I Open BDO Easy Redemption Plan?

In opening a BDO easy redemption plan you need to first prepare all the necessary requirements then fill out the required forms as mentioned above. Although you would need these requirements forehand, the process won’t take that long. 

  • Choose where you would link your BDO ERP account – it can be BDO CA/SA account.
  • Select your pay-out amount and the schedule of pay-out – one or twice a month, 5th, 10th, 15th, 20th,25th, 30th.

Why should you open BDO Easy Redemption Plan?

  • If you want flexible cash out from your existing UITF;
  • It automatically allows redemption regularly following your own schedule;
  • If you do not want to redeem all your units from your investment
  • You want to retain some of your units in order to earn some more

Although BDO ERP can give out a lot of benefits, investing in UITF have certain risks and benefits. The client should be prepared to absorb potential risks as losses; due to change in interest rate, change in market/price, and the inability to sell or convert assets into cash quickly. But even if that’s the case, it gives clients great benefits like better earnings potential which are achieved without having to invest large sums of money. Plus, you can moderate or monitor the amount of money that gets withdrawn in the pool.

This can be useful in both allowances, investments, or just for money-keeping purposes. Who knew that there’s some plan like this available for Filipinos?

So what are you waiting for? Why not open a BDO ERP now?

Read Also: How to Fund COL Financial Account using BDO Online Banking


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