Where to invest? Saan ba ako mag-iinvest na safe?
Saving money is just part of your financial journey. You cannot beat inflation by simply saving money but you can beat it by investing. Investing is really essential in reaching your financial goals.
But first, here are some friendly reminders. Before you invest in anything always remember that:
1. Risk comes from not knowing what you’re doing.
2. Your investing success is measured by how you put a financial plan and discipline in place.
3. An investment in knowledge pays the best interest.
Now, here are some of your investment options:
1. Pooled Funds: Mutual Funds, Unit Investment Trust Funds (UITF), Exchange Traded Funds (ETF)
Features:
Low investment costs
Can invest through investment companies directly, online brokers, or banks
Managed by professional fund managers
Better potential returns than deposit products
No withholding tax due to investors
Online brokers: COL Financial, First Metro Securities
Download Rex Holgado’s eBook on Pooled Funds at:
2. Stocks
Features:
Easiest way to take advantage of a growing economy
Can invest through the ease of online brokers
One of the best performing assets
You can be a shareholder of the company you invest in
You can earn through dividends and price appreciation
Beware in choosing companies to invest in
Online brokers: COL Financial, First Metro Securities
Also read: New to Investing?, Basic Terms, Beginners’ Guide
3. Bonds: Government, Corporate
Features:
Being issued by the Philippine government and SEC-registered companies
Banks are the selling agents; specific banks per offer
Tenor, rate, and minimum investment depend per offer
Interest payment depend on the schedule or maturity
Earnings subject to 20% withholding tax
Invest in Pooled Funds, Bonds, and Stocks through GCash Mobile App: Invest Money
Ideal for low-income earners (also students)
Can invest for as low as P50.00
Invest in Bonds, Stocks, Investment Funds
Frequently Asked Questions
Invest Money Primer
4. Real Estate
Features:
Can be used as an asset diversification
Good option as a hedge to inflation
Can generate a steady flow of rental income (or you may just flip it or buy and sell)
Location of the property as an investment plays a critical role
Do your homework and prepare an investment plan
Also read: Guide to Real Estate Investing, Ways to Earn in Real Estate
5. Cooperatives
Features:
Be critical on choosing a cooperative and choose only from those with high performance standards in financials and compliance
Make sure the cooperative is registered in Cooperative Development Authority
Dividend rate or interest depends per cooperative
Tax-exempt earnings
Usually membership is required
Investments are not insured
6. Long Term Negotiable Certificate of Deposits
Features:
Banks are the issuers and selling agents
Tenor, rate, and minimum investment depend per offer
Tax-exempt earnings if held for at least 5 years (must be in the name of individual investor)
Interest is higher compared to other traditional deposit products
PDIC-insured investment up to P500,000.00
7. Modified Pag-Ibig 2
Features:
Pag-Ibig 1 member
Voluntary
5-Year Placements
P500.00 minimum per month
Sovereign guaranteed (payment is guaranteed by the government)
Also read: MP2 FAQs, MP2 Brochure
8. SSS Flexifund
Features:
Must be OFW and SSS member
Voluntary
Pension top-up
P200.00 minimum per month
Sovereign guaranteed
Also read: SSS Flexifund Brochure
9. Own Business
Features:
Earning potential depends on your ideas, skills and management
Capital requirement depends on how much you are willing to invest
Also read: Small Business Ideas, Guide on Starting Small Business, 21 Steps on How to Start
10. Alternative Investments: Paintings, Gold, Venture Capital, etc.
Features:
Some are complicated / less efficient market
Can be emotionally and/or intellectually satisfying
Return varies widely on market supply and demand
So, there! You cannot just work to make money because you can indeed make your money work for you too. You can invest in many instruments. In fact, if you are just getting started investing, diversification or investing in various instruments can help you reduce investment risk.
You will find more investment options out there other than the mentioned above. But don’t forget to do due diligence beforehand and don’t get into any investment out of mere excitement — that is one way to avoid scams.
The most important thing is you study and understand very well what you are getting into. At the end of the day, you are the one who’s responsible for every decision you make — no one else.