Last Updated on December 18, 2021 by Rat Race Running
No, this is not a joke, and this is definitely not a scam! You can actually start investing with as little as P50, cheaper than a magnum 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.
It is crucial to have life and health insurance and an emergency fund before investing. Doing this will allow you to ride the market tides of the investment that I will introduce.
Don’t just save; invest!
It is part of the Filipino culture that we should save a portion of our income if something wrong happens.
However, this is no longer the case today. Sure, it is still better to have something saved in a bank or stored in your house, 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 are usually less than 1%, while the inflation rate is ranging from 2-4%.
That is why it is essential to invest. Just make sure that 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, even as a student or a low-income earner, P50 is already enough to start building your financial future.
Start investing with only P50.
For as little as P50, you can now start investing through mutual funds.
Mutual Funds are financial instruments that ‘pool’ the money of many investors and are invested in various financial assets by a professional fund manager.
In the Philippines, there are plenty of Mutual Fund to choose from, and be sure that 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 (coming soon) – P1000
- 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.
Basics of Mutual Funds
There are four general types of mutual funds depending on which financial assets are invested. So, make sure to 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 types of 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, higher rewards, and longer-term investment. Your money is invested through the stock market.
Lastly, we have the Balanced Funds. It is the moderate risk, moderate rewards, and medium-term investment. The fund managers can invest your money in any combination of the first three types of mutual funds.
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 you can.
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 that they will continue to grow at the same rate tomorrow.
Also, age is crucial with investing, so it is important to start as early as today. Do your future selves 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