The biggest hurdle in getting most people to invest is at the beginning. Simply getting started is the most important step you can make toward building a financial nest egg.
There are many reasons why people don’t invest, but the most common reason is usually some variation on not having enough money or thinking that investments are only for the wealthy.
While many wealthy individuals indeed use stocks, bonds, and mutual funds as investment choices, even people with less in savings can participate. In fact, all that it takes for you to get started in investing is PHP 5,000. And with BPI Investments Online, you can monitor and track your portfolio at anytime of the day.
So where can you start investing?
1. Mutual Funds
Mutual Funds offer a great way to start investing. Consisting of funds pooled together from different investors, mutual funds are professionally managed, allowing you to focus your time on your career and family. They also offer the benefit of being able to diversify your funds across different stocks and bonds. Even with just PHP 5,000 you can be invested in a broad array of companies, something that you would not be able to do if you were investing in individual stocks.
Unit Investment Trust Funds (UITF) are similar to mutual funds in that funds are pooled together to invest in a variety of instruments. The main difference with a UITF is that investors buy a unit of the fund, whereas mutual fund investors are effectively shareholders of the mutual fund company. UITFs are offered by banks and regulated by the Bangko Sentral ng Pilipinas (BSP), while mutual funds are offered by accredited Mutual Fund Companies and are regulated by the Securities and Exchange Commission (SEC).
Ultimately, both mutual funds and UITFs offer the same advantages of being able to diversify your investment, even in little amounts, and both have professional fund managers to take care of your investments. Investing in UITFs starts at P10,000.
3. Regular Subscription Plan
Investing regularly and consistently is a goal that every investor should aspire for. This practice mitigates risk from market fluctuations, and helps to optimize your investment by cost-averaging your portfolio over a longer period of time.
For those that need a little motivation, BPI’s Regular Subscription Plan (RSP) allows investors to set a periodic schedule of contributions, whether monthly, quarterly, or any other cycle. The investments don’t have to be big amounts — they can be as low as PHP 1,000 per contribution.
RSP’s help make investing a regular habit, which is the best way to grow your investments and increase your portfolio.
Whatever the type of investment you choose, the single biggest step is to simply get started. The sooner you start, the faster you can grow your investments. Open an investment account today and check out the latest investment promos.
This material, which is strictly for information purposes only, is for your sole use, and does not constitute a recommendation or an offer to sell or a solicitation to buy any financial product. Any information is subject to change without notice and BPI is not under any obligation to update or keep current the information contained herein. You are advised to make your own independent judgment with respect to the matter contained in this document. No liability whatsoever is accepted for any loss that may arise (whether direct or consequential) from any use of the information contained herein. Past performance is not a guarantee of future results.
The views expressed in this report reflect the writer's personal views and not necessarily the Bank of the Philippine Islands'. Furthermore, no part of any of the writer's compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the writer in this report.