If you are wondering where to invest in the Philippines, then this article is exactly for you. Before jumping into the fun facts about investing, where to invest, and how much to invest, let’s educate your first on what investing really means and what you should undertake before you use your money to build an investment portfolio.

What Does Investing Mean?

In the simplest of terms, investing means you set your spare money into an asset management company for them to distribute and manage or you commit yourself to secure your own investments to allocate and manage the money. Investing, in addition, presents you two things to confront: the risk that you must recognize when committing your money to invest and, the potential return you must expect in exchange for the risks.

In summary, investing delivers you the chance to gain the most out of your savings while you focus on your real job. Investment is not an earning vehicle that you must consistently observe and pour all your time into. Investing in blue chips, stocks, bonds, and other forms of investments is considered passive income because you are generating revenue from the money you have already invested.

Why Invest?

As the need for money grows rampant for people due to the increasing expenses we have as we turn into adults, we start to question where to invest in the Philippines. This is your best cue to start learning more about investing. In this section, we will discuss why you should start investing today.

It encourages you to attain your financial goals in a sounder manner

Aside from your business and nine to five jobs, investing is another way to aid you in achieving your financial goals in a shorter timeframe. By all means, investing does take a while to grow but when you retain other ways to earn, you can accumulate money faster than when you just rely on one source of income.

It helps you be prepared for retirement and emergencies

The most sensible investment for beginners in the Philippines is one that should be able to perform earning capacity to build retirement and emergency earnings. Many people think that investment is merely for constituting wealth, there are more benefits to it than just that. For one, retirement is the most where you can benefit from your investments.

It supports you to have better money habits

Gone are the days when you just save your money by putting it in a bank account or savings can. As an adult, there are far more other opportunities to save and increase your money. Investing helps you earn more and grow your money for when you require it the most.

What are the Risks?

Investing comes with potential risks. Like expending your money as capital for a business. There is a risk that you will lose money along the way, but as you work harder, earnings come right after. These risks cannot be prevented.

The soundest investments for beginners in the Philippines are conservative but moderate-yielding investments. One where they would be comfortable investing their money considering that it would be their first time. Indeed, the first step to investing is not knowing your budget but learning about your risk appetite. In this section, you will find out the risks that come along the way.

Risk of expending capital

The risk of capital loss is inevitable when it comes to investing your money or retaining it invested by asset management companies. This is where the leap of faith comes in as well as other options on where to invest in the Philippines.

Considerable risk of not meeting expected returns

Historical data do not fully predict future returns and projections do not ensure authentic performance. When you set your expectations, you must always be lenient and ideal. Once you step foot in investing, there is inevitably a decent chance of not receiving your anticipated returns, especially if you are looking forward to a more significant return. The best you can typically do is consult an Investment Specialist where you can find out whether you are setting yourself at greater risk or having a steady and moderate return.

What Should You Do Before Investing?

The best investment for beginners in the Philippines comes with significant planning and practical knowledge. While there are plenty of things to consider when investing, the things we have listed down below should help ease you into investing.

Establish a financial plan

Having a great and well-thought-out financial plan should help prepare yourself for future challenges and allow you to expect an ideal return depending on your investment portfolio. The financial plan should direct you in appreciating why you’re doing it, the duration, and what you’re expecting to get from it.

Wisely determine your goals

How much do you ideally want to achieve by when? What remains of your goals for the foreseeable and indefinite future?

Acknowledge your current financial status

It will be challenging to achieve financial goals if you have no idea of your current finances. Can you accommodate enough to secure investment? Would you not demand the money you invested in other expenses?

Devise a stable financial plan

This is the stage where you are instantly discovering effective ways and other means to improve your present situation in life in order to reach financial stability. Do you have any other streams of income? If so, are they helping you achieve financial success?

How much capital do you require?

One of the most appropriate and proven financial distributions is 50/30/20. Where 50% goes to your needs, 30% goes to your wants, and 20% goes to your savings. As you are developing your financial plan; it is critical that you understand how each of your financial goals would amount to as well as how long you are planning to attain them. Combining cost and timeframe formulates an actionable plan. The subsequent course of action would then be knowing whether you have the capital for it or not.

Where to Invest?

In the concluding section of this article, we will share with you some investment vehicles that you can jump into depending on the timeline of your goals – short-term or long-term. Whether you are seeking the best investment for beginners in the Philippines or finding other ways of investing.

Securities

To set it simply, securities represent financial investments with monetary value. Investors are provided paper assets proof of partial interest or ownership of a publicly-traded company such as stock, debt obligation, or bond.

• Company stocks
• Preferred shares
• Corporate and Government bonds
• Treasury bills
• Long term negotiable certificate of deposit

Managed funds

Asset management companies like Cocolife Asset Management Co., Inc. manage funds on behalf of investors. For beginners and active individuals, the best way to invest is to put money in managed funds like mutual funds, unit investment trust funds, or exchange-traded funds.

• Mutual Funds
• Unit Investment Trust Fund
• Exchange-traded Fund
• Personal Equity and Retirement Account (PERA)
• Variable Universal Life Policy

Government savings program

Government-run entities created savings programs for Filipinos who want to gain passive income. Here are some of the funds you can get into if you are looking to secure your money from the government.

• Pag-ibig MP2
• SSS Flexi Fund
• SSS PESO Fund

Bank products

Banks offer conservative clients, high-yield savings accounts, savings accounts for kids, and time deposit products with above-average interest.

• High-yield savings account
• Peso time deposit

Investing 1,000 Pesos Right Now with Cocolife Asset Management Co., Inc.,

Start today and reap the benefits tomorrow. The best investment for beginners in the Philippines is one that would wholly enable you to experience the risks and challenges so the next time around, you will be more confident in investing your money.

To cap off, knowing where to invest in the Philippines as well as how to prepare yourself for it, should encourage you to earn and invest to reach your financial goals.

Click here to learn more about Cocolife Asset Management Co., Inc. Funds.