There are many types of investments you can do in the Philippines. Most of us only need to have a proper understanding and learning on how to carry out and enter these available investments.
If you have no idea and you don’t know how to start investing, all of it can be learned from the Internet. You simply need to research and have lots of patience when searching.
Investments can come in different forms and types according to goals and nature where the money is invested. Investors are not only for rich people, even if you are an employee you can start to invest as long as you have a regular income and you know how to save. The only way for you to earn more money aside from employment is through investing.
Types of Investments in the Philippines
In general, there are various ways, types and forms of investments you can start depending on your goals and your capability to invest.
Obviously, you should have money that you need to use for investing. If you don’t have the money, you may start to save money first and then once you have a sufficient funds, you can start investing.
You don’t need to have a big amount of money to enter the world of investing. For as little as P10,000, you can begin to invest in some of the legitimate investments available in the market today. Here are some of the investments you can consider:
1. Mutual Funds
Mutual funds is the collection of money from individual investors. Normally, the funds are invested in stocks or securities, commodities, bonds or bank deposits.
If you want to start investing in MF, the normal initial deposit for opening an account is P10,000 and after that you can buy MF for as low as P1,000.
Stocks are not a common investment in the Philippines because maybe of the wrong notions of the people about it and the lack of financial education among many Filipinos. Basically, if you invest in stocks, you directly invest in the company holding the stock.
For example, when I buy the stock of Jollibee, I invest in the business and company of Jollibee as a whole. It is not form of gambling for me because you invest in a business not in lack or fortune.
Basically, Unit Investment Trust Fund is almost similar to mutual funds. The differences are the company managing the fund and regulatory body overseeing the funds.
For UITF, normally the banks are the ones that manage and operate for it while investment companies issue and manage mutual funds. Both funds are usually invested in stocks, bonds, or bank deposits.
Central Bank of the Philippines oversees and regulates UITF while Securities and Exchange Commission monitors the mutual funds operating in the country.
Both the Philippine government and private companies issue bonds to raise money for their future projects or to supplement a budget deficit. Bonds are low-risk sure returns unlike stocks and mutual funds.
Normally, companies like MF and UITF firms also invest in bonds but it’s hard for you to invest directly in it because you need to have a big capital. However, for small-capital individual investors, you may try to invest in retail treasury bill which you can buy or get from the banks.
5. Business Franchising
If you don’t have any experience about building a business or you don’t have enough time and big capital to start a business, you can consider business franchising as one form of investing.
Usually, you franchise a stable and popular business like Jollibee, McDonalds and other famous brands. Most of the first-time businessmen choose franchising because it is already established and known by many people for its good products and services.
Of course, there are advantages and disadvantages when franchising a business. It’s up to you to weigh these things but in general, a business franchise is more likely to succeed than setting up a new business from scratch.
6. Online Business
Many people now are getting their income from the Internet. Some of them have blogs and online stores that gives them recurring income from the advertisements in their websites or from the products that they sell.
Online business is easy to set up and has low initial capital unlike traditional businesses or business franchising. Just like any other businesses, you need to build a reputation and have satisfied customers to be successful in doing business online.
The list above shows only some of the common investments you can begin with. There are other things that you can invest not discussed in this article. Make sure all of your investments are legitimate and you study it first before you put your money on it.