How to Start Investing in 30 Mins

How to Start Investing in 30 Mins

 

No matter what part of the world you are in, investing is one of the best ways to build up your cash assets. When you invest money, you are putting cash into something that will generate a return in the future. If done properly, investing can be a great way to increase your wealth.


Now if you are from the Philippines, you are already privileged! Because in the Philippines there are many ways you can invest and grow your money! In this article, we will be talking about some of the best ways you can grow your money through investing. We will also share some of the best tools that you can use to start your investing journey. So let's get started!


What is investing and how does it work?

Investing is the process of putting your money into something that will generate a profitable return. Let's take the example of a business. Let's say your friend is starting a cafe and needs funding. You liked his idea and you gave him a certain amount of money.
Your friend promises to pay you back in one year with a 25% return on your investment. So you give him 100,000 pesos and the next year he gives you 125,000. As you can see, investing is a very simple process and the returns can be great.

What are some of the best ways to start investing in the Philippines?
As we mentioned there are many ways you can invest in the Philippines. Some of these methods are simple and quick to execute while others might be slightly more complex but will provide you with much higher returns.

1. Stocks:

Stocks are the most common and popular investment vehicle in the world. When you buy stocks of a company, you will become a part-owner of a small percentage of the company. Now when the company does well, the value of your stocks will increase and you can sell it for more than what you paid. But if the company does poorly, you might lose some or all of your money.

2. Mutual funds:

Mutual funds are also a very common and popular investment tool. A mutual fund is a collection of stocks and other assets that you can buy into. The best part about mutual funds is that your money will be handled by highly qualified professionals.
They will invest your money in the stocks of multiple companies and you get a good return from the collective performance of all the assets. Since your money will be handled by professionals, it will be in good hands. However, you have to pay a fee for the professional processing of your funds.

3. Government and corporate bonds:

When you buy a bond, you are lending money to an institution or the government so they can finance their projects. Once they are done using the money, they will pay you interest and return your principal. Since these bonds are backed by an institution or a government, there is very little risk of losing money.

4. Index funds:

Index funds are also a great way to invest in the Philippines. An index fund is a mutual fund that tracks an index, like the stock market index of your country. Now there are various advantages to investing in this kind of funds. They include (but are limited to) low fees, high returns, and diversification among many other benefits.

5. Cryptocurrency:

Recently the Philippine government has approved the use of cryptocurrency in the country. This means you can now buy and sell cryptocurrencies like Bitcoin and Ethereum. More and more people are starting to invest in this type of asset because it is relatively new and offers great returns in a short period. But they are also very volatile and can be risky. So make sure to do your research and then invest.

6. BDO Securities:

If you are looking for an even more advanced platform, BDO is the answer. It offers a platform that allows you to invest in stocks, ETFs, Index Funds, Forex, and even retirement plans like Roth IRAs. It has a fairly simple and easy-to-understand interface, which is great for beginners.
 

How do I start investing?

Now that you know what kind of investment vehicles are available in the country, you can start investing. Here are some of the necessary steps you need to follow to start investing.
1. Create an investment account: It is always a good idea to create a separate account for your investments. That way you can keep track of everything yourself without the need to rely on anyone else.
2. Sign up for online brokers: You can sign up for an online brokerage account and you will be provided with a large list of investment vehicles.
3. Research: You need to research which investment vehicles are best for you and your situation. Don't just rely on the advice of others but do your homework.
4. Start investing: At this point, you should have a good idea of which investment vehicles are best for you. You can now invest your money and make it grow over time!
5. Diversify your investments: Since you are investing, make sure to diversify. Diversification is the best way to limit your risk and maximize your returns. So if you invest in multiple stocks, even if one fails, you should still have the others to rely on.
6. Be patient: Finally, the most important part of investing is to be patient. You won't see returns immediately, so if you need money right now, don't invest it. Wait until you have enough time for your investments to grow and accumulate. That way you can attain financial success over time!
 

Top online brokers in the Philippines

Each platform offers different benefits and features, so you should compare all the different ones available. You can then sign up through their respective websites and start investing today!

1. First Metro Securities:

This broker is well known in the country because they are one of the first companies to offer trading accounts to Filipinos. This means they were pioneers in the industry and have lots of experience when it comes to investing in ETFs, stocks, and mutual funds.

2. COL Financial:

This is another well-known online broker that has been around for quite some time now. They offer very low fees, much lower than others. It is dedicated only to stocks and offers a user-friendly interface and multiple features.

3. eToro:

This broker is relatively new in the industry, but it offers very low fees and an easy-to-navigate interface. You can invest in Stocks, crypto, forex, commodities, ETFs, and index funds through its mobile app. It also has a lot of great features and resources to make your day easier.

4. BPI Trade:

This broker is known for its very low minimum deposits and offers an online trading platform that allows you to trade stocks, ETFs, Forex, and futures. It also has a built-in risk management tool and offers some of the lowest fees in the industry

5. GCash Invest Money:

If you are planning to invest in Mutual funds, Gcash is the app for you. You can invest in some of the best mutual funds out there like Emerging, Balanced, and Growth funds through this platform. It is really easy to use, intuitive and comes with a great interface that allows you to manage your investments efficiently.

Conclusion

Now that you know about investment vehicles available in the country, you can now start investing. Remember, investing does come with risk. So make sure to do your research and create a plan before diving headfirst into the market. It may take a while to get the hang of investing but once you do, everything will become much easier and you can start making a good amount of money!
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