Investment Options You Can Start for as Low as P10,000
Where do you put your hard-earned money?
For many OFWs, money is saved in the bank through your savings accounts, which also serves as a remittance account. Some will decide to open a time deposit, which allows them to earn a little bit higher than savings account.
If you want to be wiser about your money, then you need to start considering investment options.
According to Investopedia, investment is economically defined as “purchase of goods that are not consumed today but are used in the future to create wealth.”
In simple terms, it helps you grow your money.
Decades ago, investment are for the rich. Some options even require you a huge amount of cash to be able to have one. Today, the story is different. Investment options are not accessible to everyone, regardless of socio-economic status, to help ordinary Filipinos build their wealth. In fact, all you need is P10,000 and you can start your investment journey.
Below are your options:
Mutual Fund
Mutual fund is a type of investment wherein money from various investors is pooled into a common fund. This common fund is managed by professional fund managers, who in return, will invest the fund into different securities.
The best part is you can start with as low as P10,000.
Read: How to Invest in Mutual Funds
Unit Investment Trust Fund or UITF
UITF is similar to mutual funds, except that the former is offered by commercial banks.
The good news is investing in UITF is safe because banks are supervised by the Bangko Sentral ng Pilipinas. The better news is that you can start investing in this with only P1,000 on your wallet. Not bad, right?
Government Securities
These are investment options offered by the government such as Retail Treasury Bonds and Treasury Bills.
The good thing about this type of investment is that aside from low minimum amount of P5,000, it is guaranteed by the government. After all, do you really think the government will run out of money?
However, don’t expect too much on interest since the return may be slightly higher than time deposits.
Stocks
If you are looking for high-return type of investment, then investing in stocks is a good idea. This is because when the company is earning, the value of the shares increases. The best part is the value of shares typically increases over the years. You can also start investing with P5,000 on your account although this may prevent you from buying high-valued stocks.
The issue with investing in stock market is that the risk involved is higher. When the company is not performing well, their value decreases, which means the price of their stocks decreases too. You could potentially lose a big amount especially if you’re not too careful on where to invest.
Government Savings
Another good option to invest your money at is through government savings.
PAG-IBIG has MP2 savings program that allows you to deposit at least P500 every month. On the other hand, SSS has a PESO Fund wherein the minimum monthly deposit is P1,000.
Since these savings program are guaranteed by the government, then you don’t have to worry about losing your hard-earned money.
Just make sure you are a member of SSS and PAG-IBIG to be able to avail of these savings programs.
READ: PAG-IBIG MP2 Savings vs. SSS P.E.S.O. Fund
So, which among these investment options are you ready to say yes to? Remember, if you start early now, you’ll be able to reap more benefits later.