Investing allows you to make money work for you rather than the other way around. When Filipinos think of investing, the most common deception is that one is required to be equipped with an overwhelming knowledge of the stock market and that it could only be made possible if you have a major in economics or other finance related courses. With this prelude, Filipinos are intimidated causing many to refrain from venturing into investing.
The concept of one size fits all does not apply to the investment. You alone can determine what kind of investment is good for you. Your goal plays a very large role in choosing the right investment. Be smart and you should be willing to take a financial venture. Be aware that every investment has certain risks; this is why you must never put all your eggs in one basket.
Investing is a long term process. Feasibly, what makes a high yield investment is when you start early. But what is the right age to start investing? Several studies and surveys show that the earlier you invest the more profit you gain in the long run. When you invest at an early stage in life, you learn a pattern of financial independence and discipline. Let’s discuss some of the top and best investments in the Philippines.
- Unit Investment Trust Fund (UITF)
UITFs are pooled investments but at a more affordable amount. You also get to have a fund manager that takes charge of your money. The best thing about it is that it is liquid, which means that you are allowed to withdraw your investment in the event of a financial emergency. Like all other investments, this type also has its own risks. It is known that UITF has higher returns compared to savings accounts and time deposits.
- Mutual Funds
A mutual fund is a collective pool of money provided by individuals that are handled by fund managers and used to invest in different securities (like stocks and bonds). Since it is collective, every investor and shareholder benefits and loses an equal portion. Professional fund managers make the toughest decisions when it comes to allocating the funds into different securities. Before investing in mutual funds, you should have knowledge of how this works. Always keep in mind that risks are inevitable.
- Crowdfunding
What happens here is that you invest in a start-up business, and depending on the performance of the business, your returns can be very rewarding. There are several platforms that are involved here. You have to be keen in choosing a platform. Review their site and make sure that they give you complete and detailed information about what they would do to your money and present you with facts and legit testimonies why it is a great investment prospect. And since there are several platforms, find a way to invest in a wide range of areas and business types.
- Business
Putting up a business is one of the best investments in the Philippines. You must understand though that it is risky and would usually take a lot of time. Having capital to start a business is one of the biggest challenges. If you are creative enough, you’d realize that there are some business ideas that won’t require a huge capital. Online selling is a popular type of business that you can actually start.
It is important that you invest with a purpose. Keep in mind that the earlier you start investing, the better the chances of growing your hard earned money. No matter what type of investment you choose, it best to take action now.
