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.