Investment Options

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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)

  • 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 FinancialFirst Metro Securities

Pooled Funds eBook (to be uploaded on August 31, 2019)

2. Stocks

  • 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 FinancialFirst Metro Securities

New to Investing?Basic TermsBeginners’ Guide

3. Bonds: Government, Corporate

  • 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

4. Real Estate

  • 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

Guide to Real Estate Investing, Ways to Earn in Real Estate

5. Cooperatives

  • 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

  • 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

  • Pag-Ibig 1 member
  • Voluntary
  • 5-Year Placements
  • P500.00 minimum per month
  • Sovereign guaranteed (payment is guaranteed by the government)

MP2 FAQsMP2 Brochure

8. SSS Flexifund

  • Must be OFW and SSS member
  • Voluntary
  • Pension top-up
  • P200.00 minimum per month
  • Sovereign guaranteed

SSS Flexifund Brochure

9. Own Business

  • Earning potential depends on your ideas, skills and management
  • Capital requirement depends on how much you are willing to invest

Small Business IdeasGuide on Starting Small Business21 Steps on How to Start

10. Alternative Investments: Paintings, Gold, Venture Capital, etc.

  • 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.

To #FinanciallyLiteratePH

Disclaimer: This article is provided for information purposes only and should not be interpreted as investment advice. Under no circumstances does this information represent a recommendation to buy or sell any of the mentioned above.


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