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Investing in Philippine Market Guide for OFW’s

Investing in Philippine Market Guide for OFW’s

Philippine economy is booming and our stock market is reaping the benefits of it. With more cashflow from foreign and few local investors, our current market is expected to surge even more in coming years. This is a good new for all Filipinos. However, sad to say, ordinary Filipinos and OFW’s won’t benefit from it. In fact, for OFW’s, the effect is the other way due to rising peso.

The only way to ride on the rising economy is thru investment in the Philippine market. Here’s how you can invest in the Philippine market especially for newbies.

STOCKS

invest-in-stocks

Who do you think owns SM? You might answer Henry Sy, but he is not the only one. All the shareholders own it, and that includes you if you have at least 1 share of SM company.

There are around 294 companies listed in our Philippine Stock Market. These are companies that are selling shares to public. That includes our beloved companies like Jollibee(JFC), Globe(GLO), PLDT(TEL) and the rest.

When you buy a company stock, you become a share holder and a business partner for prominent businessmen in the country. To buy a stock, you need a stock broker that will buy the shares on your behalf. Since I am an OFW, I prefer Citisec Online as the are very convenient to use. Buying stocks is like shopping online, just enter the number of shares and the price. Registration also can be done while abroad. Monitoring on your portfolio is also via their website.

For more information on how to open account with Php 5K minimum deposit, click here.

MUTUAL FUNDS

mutual-funds

When you invest in mutual fund, you let the fund manager handle the investment on your behalf. If you engage in stock market, you are the one doing the buy and sell. In mutual fund, all you have to do is give your money investment and they will take care of everything. You just sit down and relax while you can monitor your share price daily on their website. The top 3 mutual fund companies in the country have great growth in the past years. Also, opening account requires a minimum investment of Php 5K only. Check my previous post for FAMI and PHILEQUITY mutual fund details.

There are various funds offered by the investment company. They have specific fund that are invested in the stocks market, you can choose that fund as well to indirectly participate in the current market growth.

Investing always comes with a risk. However, by taking that risks also you will have the best option for your money to grow. You can always check the fund companies previous record and earnings as reference, though it is not a guarantee that they will perform the same.

Opening mutual funds account can be done while abroad. I have opened mine in Singapore by just filling up their form and send it to them. For detailed instruction on how to open account, check my FAMI and PHILEQUITY post.

UITF

invest-in-uitf

UITF function the same as mutual funds. You just need to give your investment to the fund manager and they will handle the rest. This type of investment is only offered by bank, unlike with mutual fund that is offered by investment company. Application can only be done thru personal appearance in the bank, you cannot open while abroad. Most also requires minimum Php 100K initial investment, except BDO which offers for as low as Php 10K initial investment.

Banks offers various funds that are linked to different investment vehicles. Like mutual funds, they also have a fund that is linked to the stock market. Choosing this type of fund will make your money participate in the stock market indirectly.

During the past years, UITF gains in the country has been great as well. If you decide to choose one, try to check their portfolio and past performance. For more information about UITF, check my previous post.

Before you start to invest in any of these, try to learn as much as you can. Remember, there are risks in investment. But it can be minimized and avoided thru knowing what you are investing.

P.S. A year ago, I do not know anything about investment. Then I joined Truly Rich Club by Bo Sanchez. It was the best decision I ever made in my life. Brother Bo is a spiritual preacher and at the same time, financial literacy advocate whose purpose is to help people become rich in order to serve the LORD with the money that they have. He guided me along the way, explaining how I can manage my money and make it work hard for me. Now I’m investing in stocks and mutual funds and have a clear path for my future. Soon I’ll open UITF account as well. All are made possible by his guidance and teachings on every steps to become an investor. Being OFW isn’t forever, this is my EXIT PLAN. It’s amazing how his teachings change my life. I’m inviting you to join the club too, JOIN TRULY RICH CLUB. If you have any question, feel free to leave your comment below. CLICK HERE TO JOIN

About Richard Macalintal

Hi my name is Richard. I am a Registered Financial Services Consultant in Singapore. If you have any queries or you need help on your insurance policies and investment linked products, feel free to message me :-) We can have a cup of coffee while I do financial review and give advice with regards to your finances :-) Contact me thru email rlmacalintal(at)yahoo.com or SMS me +65 82235186. Disclosure: I am a Financial Consultant of AIA. The statements or opinions expressed on this site are my own and do not necessarily represent those of AIA.

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