Four Ways to Invest in the Philippine Stock Market
Disclaimer: This article was originally posted on my Steemit account, a FREE blockchain-based blogging platform which allows its users to earn cryptocurrencies (Steem and Steem Dollars). Minor changes have been made for this post.
Do you want to start investing in the Philippine stock market but you don’t know how and where to start? Don’t you worry for this guide is made specifically for you.
2. Mutual Funds
3. UITF (Unit Investment Trust Fund)
4. VUL (Variable Universal Life Insurance)
Ages ago, the way of investing in the stock market is through a traditional account where a broker will do the buying and selling of stocks for you.
It will only take one phone call to execute the trading of your favorite stocks.
You just need a computer or a smartphone, an online trading account, an internet connection, a bank account, and of course, the necessary capital, then Viola! You’re all set!
Here are some of the most recommended online stock brokers in the Philippines:
I just picked the ones with the lowest capital to start with. Currently, I am using COL Financial with an initial investment of P5,000 (100 USD).
You can always top-up your online stock market account with a minimum of P1,000 (20 USD). When it comes to security, you don’t have to worry about your investments since online trading accounts are secured through SSL and TSL certificates which are also used by major banks.
But if you’re not confident enough because you still lack the fundamental and technical skills to do so, then you have the option to let other people do it for you.
In mutual funds, investors pool in their money and entrust the total accumulated amount to a fund manager, who is an experienced stock market investor.
The pooled capital from different investors will then be used to buy the top and established companies in the overall stock market.
Afterward, the returns being generated will be passed back to the investors depending on the proceeds of the invested stocks or securities.
These are the different types of mutual funds with their corresponding composition, horizon, objective, and risk type:
Here in the Philippines, there are Mutual Fund companies that could cater your investment needs such as Sun Life, FAMI (First Metro Asset Management Inc), and COL Financial.
With as low as P5,000 as an initial investment and P1,000 per top up, you can already invest in mutual funds.
Almost all banks offer UITF investments, so as long as you have a bank account, you can always start investing in UITFs with a minimum investment of P10,000.
Here are the other differences between Mutual Funds and UITFs:
Having an online-banking account is also an advantage for you to see the current value of your UITF investments.
If you’re just starting out towards your journey to investing, I highly suggest having VUL as your wealth protection and at the same time as your stock market investment.
Unlike other insurance plans, VUL is more liquid for you can always withdraw the investment side anytime you want. You can have a VUL premium plan of at least a thousand pesos per month to be paid for 10 years at most.
So there, I hope you find this article informative enough for you to start investing in the stock market.
In my next posts, I will tackle more on the technical aspects including how to earn, how to signup with an online broker account, and how to do the basic buying and selling of stocks.
If you have questions regarding this article, and if you wish to know more about a certain investment or financial topic, kindly reach me through my email sheila@pinayteenvestor.com
Sheila
Sheila is a civil engineer by profession but has switched careers to become a copywriter. She loves making sales through stories that are relatable to the average person. She's also a sucker for memes and thinks she’s the funniest person in the world (even though she knows that’s not true). Her favorite drink is Kopiko Brown coffee, but she'll also take tea or beer if it's offered.
One Comment
Pingback: