Mutual Funds Philippines

If you ever hear someone say that “It’s hard to be rich in the Philippines”, you should start thinking if that person even have any knowledge of investing. Contrary to popular belief, its easy to invest in the Philippines and has a wide range of different flavors for different person. Like for example, a risk tolerant worker of 20 years old may have a different investment plan to a person reaching his retirement age. Of course the earlier you start, the faster you get rich. But the point of this post is to let you know that there are different types of ways where you can earn money passively. This is not a secret and was well known by people since the beginning of time. Since Magellan learned to explore the world to gather spices is the same business that we know now. Investing - the act of making money without working.

Here’s a little trivia for you. Magellan is an explorer yes. But the people behind it are also investors. As you see, explorers need to hire and buy materials needed for exploration and it spans from months to years. Can you imagine how much money they would need to buy things they need to survive those long months in the ocean? When they get back with the spices, it will be sold and the investors will get their money back plus an interest for lending the money. Too bad for Magellan though, but I hope you get the point.

Here are some of the most popular investment vehicles in the Philippines.

Mutual Funds

Are good and safe investments.

Investing in mutual funds is one of the safest way to earn. It is where your money will be invested into different sources such as real estate, forex, stocks and bonds together with other mutual funds investors. The money is handled by a professional financial manager. The good thing is that you can start slow and with little money.

Currency Trading (Investing in Currency)

For people that can tolerate high risks.

Also known as Forex Trading or forex investing. Where you buy different currency such as $ dollar in the hopes that it will appreciate in value versus the peso. Remember the time where the dollar was Php30.00 ? You bet a lot of people became millionaires when the peso plummet to Php49.

Stock Investing

For people that can tolerate high risks.

It is where you buy a share of a company or a stock. Being a stock holder allows you to be a part owner of the company. Part owner of its profits and its liabilities as well.

Real Estate Investing

More for the long term investor.

I’m sure that many people would claim that this is the best investment vehicle as land and properties will always appreciate in value. This is also a good investment if let’s say you own an apartment or condominium. Those are passive income and you don’t have to work once the building is done.

Doing Business

The good ol’ fashion way of making money.

Sell a product and put on the price tag. Sell a service and charge for it. This is the old fashioned way of making money. It’s fun and can be really lucrative.

The most important part here is to never stop learning. Investing is not taught in school. Nor the richest people in the Philippines was not taught by their professor how to be rich. Therefore, never stop learning and thinking of ways where your money will grow. Once you think of it that way, you’ll see opportunities so clearly.

Did I missed something? Let me hear your thoughts by commenting below.