Rat Race Running

Last Updated on April 16, 2023

No, this is not a joke and is definitely not a scam! You can start investing in mutual funds with as little as P50, cheaper than some ice cream!

But a word of caution, before diving into investing, I would remind you that it is still advisable to follow the hierarchy of a strong financial foundation.

Having life and health insurance and an emergency fund is crucial before investing. Doing this will allow you to ride the market tides of any investment.

Don’t Just Save. Invest!

It is part of Filipino culture that we should save a portion of our income if something wrong happens.

However, this is no longer the case today. Sure, having something saved in a bank or stored in your house is still better, but keeping your hard-earned money alone is not enough if you want to build wealth and beat inflation.

With the rising inflation rate, your money saved in the bank loses its value over time since the interest rate in traditional banks is usually less than 0.5%. The inflation rate normally ranges from 2-4% but now reaches more than 6-8%.

That is why it is essential to invest. Just ensure your investment is legitimate so you won’t fall victim to investment scams.

Start Small, Start Young

As the saying goes, the best time to invest was yesterday, but the second-best time is today.

It is simply saying that time is as important, if not more important, than money because of the power of compound interest.

So, this is great news for students and low-income earners. P50 is now the minimum investment in mutual funds in the Philippines.

For this minimum amount, it is already enough to start building your investing habit and your financial future.

Start Investing With Only P50.

For as little as P50, you can now start investing in a mutual fund.

Mutual Funds are financial instruments that ‘pool’ the money of many investors and are invested in various financial assets by a professional fund manager.

There are plenty of mutual funds to choose from in the Philippines. Just be sure they are registered with the Securities and Exchange Commission. You can check them at this link.

For starters, here are some of the Mutual Fund Companies where you can start with P1,000 or less:

• GCash GInvest – P50
• Investa Trading Platform – P100
• COL Financial – P1,000
• Soldivo Funds (Rampver Financials) – P1,000
• SeedboxPH – P1,000

If you want to start investing through mutual funds, you can check the links included above. More companies are offering mutual funds that you could also check.

Mutual Fund Investing For Beginners

There are four types of mutual funds in the Philippines, depending on which financial assets are invested. So, align your choice with your financial goals, time horizon, and risk tolerance.

First, we have money market funds. It is a low-risk, low-reward, and short-term investment where your money is invested in different fixed-income securities and bank deposits.

Second, we have bond funds. It is a low-risk, low-reward, short-term investment where your money is invested in debt instruments or bonds.

The third type is equity funds. It is a moderate to high risk, with higher rewards and longer-term investment. Your money is invested through the stock market.

Lastly, we have balanced funds. It is the moderate risk, moderate rewards, and medium-term investment. Fund managers can invest their money in any combination of the first three types of mutual funds.

Final Thought:

There are so many investment instruments available today that you can start with as little as P50, so it is easier to start investing as soon as possible.

Remember that with any investment instrument, there are risks involved that you should know and that there is no guaranteed investment. Even the funds performing well today can’t ensure they will continue to grow at the same rate tomorrow.

Also, age is crucial in investing, so starting as early as today is important. Do your future self a favor and start young, even if you can just start small.

Aside from the money you can slowly build up through time, you are also building up your discipline and investing habits.

Good luck, and God bless! Happy Investing.

Trust in the LORD with all your heart, and do not lean on your own understanding. In all your ways acknowledge him, and he will make straight your paths. 

Proverbs 3:5-6