Looking for investment opportunities in the Philippines? The best investment in the Philippines that will yield maximum profit and returns is just what you need to start your investment journey in the Philippines in 2023.
Do you know that you can invest with little money? You do not need to have all the money in the world before you start investing in the Philippines. You can start investing for as low as PHP 1,000 to PHP 5,000 in vehicles like stocks, mutual funds, and government investment programs.
There are several categories and types of investment plans in the Philippines that you can consider as a beginner.
In this article, you will be enlightened on some investment guidelines that will go a long way to better your investment strategy in the Philippines.
Categories of investments in the Philippines 2023
One thing you should be aware of before investing in the Philippines is that there are three types of investments you can choose from:
1. Ownership Investments
Ownership investment works by contributing to a company’s capital. The ownership depends on the number of assets you put into the company. Ownership investments are computed at the end of each year with an increase in your contribution which earned profit or interest.
Types of Ownership Investment
The following are the types of Ownership Investment:
- Stocks – Stock Investment makes you a part-owner of a company, giving you the right to a portion of the company’s value and income.
- Business – Entrepreneurship focuses on the creation of a product or service that you can sell to others, giving you enormous potential returns.
- Real estate – This is a type of ownership investment where you buy a piece of land or property. You pay for it and expect it to increase in value. You can also use it to earn money by renting it out or reselling it.
- Precious metals and collectibles – Gold, paintings, and signed limited edition merchandise are all examples of ownership investments.
2. Lending Investments
Has someone ever told you that lending money is also a form of investment? You can lend a company money with interest and expect returns, even if they’re modest returns. Lending investments are considered less volatile and low risk because you can take your money back anytime.
Types of Lending Investment
Here are some types of lending investments:
- Bonds – Do you know that when you loan money to a corporation or an organization, you purchase a bond, and you get paid with a fixed interest rate.
- Certificate of Deposits –Certificate of deposits are Issued by banks as proof that you have agreed to leave a certain amount of money with them, Certificates of Deposit are just like savings accounts. But unlike savings accounts where you can withdraw your money anytime, CDs require you to leave your money with the bank for a certain period.
- Savings accounts – The most popular form of lending investment and perhaps the most feasible investment for beginners due to its simplicity and accessibility is the savings account.
3. Cash Equivalents
These are investment assets that are the total value of cash on hand that includes items that are similar to cash.
Types of Cash Equivalents
Here are more examples of cash Equivalents:
- Treasury Bills – Treasury Bills are issued by the government and you can usually invest with a minimum of PHP 50,000.
- Commercial Papers – These are issued by SEC-registered Philippine corporations to fund short-term obligations like inventory purchases and payrolls.
- Certificates of Deposits – CDs are debt instruments that earn interest and are much similar to time deposits.
Investment Tips for the Philippines 2023
There are several guidelines you need to know before investing in Philippines. These investment Tips will help you scale successfully in your investment journey in Philippines:
- Have Savings for Emergencies
When you save up for the future before investing, it will serves as your cushion when any unforeseen expense comes up, and you won’t have to touch your funds for investment.
2. Determine Your Investment Goals
When making the decision to invest, you can also plan to use your investment returns to buy a house or a car in the future, fund your children’s education, build your retirement fund, or serve as an extra source of income
3. Invest Regularly
One of the best strategy for investment is investing regularly, like monthly or quarterly. This is good because it manages risks, especially in long-term stock investing when prices of shares rise and fall. It also forces you to set aside money for investment regularly.
4. Do your research continuously
They say Knowledge is power and it is one of the best tool when it comes to investing in Philippines. If you continue to learn new things about investing, you can make more informed decisions and maximize your profits.
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