Ano ang investment options na para sayo?

From Investment 101, natutunan mo na you don’t need lots of money for investment options. Anyone with the right knowledge and patience can invest!

Now, you’ll learn how to choose investment options for your risk profile at investment goal. You’ll see na maraming investment options in and out of the country (more on this later). Therefore, it’s best to group them by financial characteristics and market behavior. Ang grouping na ito ay tinatawag na asset class.

Remember the common investments from Investment 101? You’ll encounter them again as we discuss asset classes. Check out these notes before we proceed!

What you’ll learn
  • The four main asset classes
    • Equities and stocks
    • Fixed-income
    • Money Market and Cash
    • Real estate and fixed assets
  • What should your first investment be?
  • Table of asset classes
The four main asset classes
Equities and stocks
  • Best for: Aggressive long-term investors
  • Investment time frame: 5 or more years
  • Initial investment cost: P50

Equities are investments that deal with company stocks. Stocks are high-risk dahil pabago-bago at unpredictable ang kanilang value. You can lose some or all of your investment sa stocks from companies that perform badly. But, if these companies grow over time, tataas rin ang kanilang value. You profit by selling your stocks habang mataas ang value.

If you invest in an equity fund, your fund manager will buy stocks from companies in the Philippine Stock Exchange (PSE). An example is ATRAM Philippine Equity Smart Index Fund. May equity funds din such as ATRAM Global Consumer Trends Feeder Fund na nag-i-invest in US stocks. Their stocks include Amazon, Alibaba, and Netflix.

Most equity investments mature in a span of five years and longer. While stock values change daily, most blue-chip companies generally perform well over several years. They survive and even thrive through economic hardship. In addition, inaabot din ng ilang taon ang stock markets to recover from financial crises tulad ng pandemic.

  • Best for: Moderate short-term investors
  • Investment time frame: 1-3 years
  • Initial investment cost: P50

The fixed-income asset class are made up of investments that involve bonds and debts. Kapag nag-invest ka sa bond fund, your fund manager will buy bonds. These can be from the local government and private companies. For instance, ATRAM Total Return Peso Bond Fund is mostly composed of government bonds. Once the investment reaches maturity, bond issuers pay back the fund. Most bond funds mature in one to three years.

Para kumita ang investment, magbabayad ang bond issuer ng interest rate monthly or quarterly. Kaya ito tinatawag na ‘fixed-income’. Bond funds are low-risk and stable dahil may repayment ka ng iyong capital upon maturity. In the long run, however, they are low-income investment options dahil debt interest lang ang iyong income.