Many of our young working Filipino professionals are inclined to work abroad and apply for a foreign citizenship via the immigration process because they think that it is hard to make money and get rich in the Philippines.
There is a wide range of choices depending on your appetite for risk or comfort level. If one invests early in life, most likely he gets rich faster and much earlier than those who started late. Although this is not the rule of the thumb but this is likely true when compounding of interest works.
Now Is The Best Time To Invest
Now is the best time to invest in the Philippines, more so because the business confidence in the new administration is quite high as indicated by the more than 13 times over subscription of the Peso-
denominated bonds worth US$ 1B that was offered to foreign investors last week. The 13x over subscription is a strong statement of support and confidence in the current administration so far.
The Philippine Stock Exchange trading has also been experiencing a sustained rally in the past weeks sans minor corrections, the index has lately reached its record high of 4,096.66 points and it is well on the
way to break the 5,000 mark.
The Peso is also gaining so much ground that it is approaching to breach the psychological level of P43.00 = US$ 1. Now is the best time to invest in the Philippines.
You can either make investments in the traditional brick-and-mortar type of direct investments or the quick and fast-lane type of portfolio investing. There are also many types of investment vehicles to make
passive income, depending on your risk appetite, such as:
1) MUTUAL FUNDS
One of the safest and low-risk way to invest is in Mutual Funds. This one is one of the best and most commonly affordable because you can start with a very small capital. Your investments, in multiples of
P5,000 is pooled together with that of the other investors into common (mutual) fund which is managed by professional fund managers and it will be invested as equity into different industries like real estate, telecommunications, power and energy, and other equally attractive issues; and also into foreign exchange trading, treasury bills and government bonds, and corporate stocks and bonds. You just have to wait
when the NAVPS (Net Asset Value Per Share) goes up at a much higher rate than when you brought your shares, sell your shares when it does and you make money in that instant. The professional fund managers do the work for you to raise the value of your shares.
2) CORPORATE STOCKS
This is a relatively highly rewarding type of investment but it carries some high risks too. You ride on the Company's ability to make profits and its favorable market perception or possible appreciation in value
when you buy a share of a Company listed in the Philippine Stock Exchange (PSE). As a share holder of the Company, you become partly an owner of the company and you get to share the companies' profits by way
of stock dividends and also its losses which can be just a paper loss when you hold on to your shares until it bounces back. A good example is that of Vista Land (VLL) by Manny Villar which went down sharply
during the election campaign when news about alleged corruption issues went around but later on recovered and its steep climb sustained by the strong market rally recently. The guy must have made billions and has
recovered his election expenses many times over.
3) FOREIGN CURRENCY TRADING
This option carries with it a high degree of risk, but highly rewarding too. In forex trading you buy different currencies such as the US Dollar, the Euro, Yen or other foreign currency that you think will appreciate in value against the Peso. It is like betting on a US Dollar by buying it at say P44.10 and wait for that time when the exchange goes up to say P44.90 to a US Dollar, and you make P0.80 per US Dollar when you unload. And this can happen in a day or two, especially when there is bad news in the country.
4) REAL ESTATE
This one is my favorite and I have been doing this for years. It is also highly rewarding but you cannot pull out your investments very easily unlike the other options. An investor can buy real estate at pre-selling prices which is discounted by around 20-30% off from the regular price, pay the downpayment in 12-18 months with no interest and then unload the property at prevailing market rates once the property is ready for turnover. Another approach is buy foreclosed and highly depreciated properties in favorable locations, introduce some repairs, modifications and upgrading to make it more like brand new and sell it at market value, or it can also be offered for rent. I will expound on this in my future posts, this being my favorite.
5) TRADING OF GOODS AND SERVICES
Produce or buy a product at wholesale prices and sell them at a higher price either in wholesale or retail. This is mostly where the Filipino-Chinese taipans started to make money in the early days. The same also
applies when selling services, especially in contracting.
6) TREASURY BILLS & GOVERNMENT BONDS
The Philippines is now on the road to progress again. The National Government is now focused in investing in the area of infrastructure, health and basic services, upgrading the military and police capability in terms of training and equipment. This implies that a huge fund is needed by the Government to fast track their implementation and tends to increase the budget deficit so they have offered T-Bills and Bonds that carries attractive and guaranteed rates because they need that much money to cover the gap.
101 More Ways To Make Money In The Philippines
There are still a hundred and one ways to make money in the Philippines especially in the current robust economic environment, like in tourism and recreation, infrastructure, education, mining, power generation
especially those tapping the renewable energy sources because they enjoy attractive perks and tax exemptions, food services, wellness & fitness, housing development for the low income and middle class
market, and many more.
Start It Now
The best thing to know which is best for you is to come to the Philippines and make your own feel of the situation. We encourage our Overseas Filipino Workers (OFWs) to learn the world of investing, rather
than just allow their kids back home spend all their money in gadgets and branded clothing and vices just to fill in that deep void in their hearts longing to be with their Moms and Dads.
Investing is maybe new to some and that is understandable because investing is not taught in school. They trained us to be very good professionals, engineers, doctors, technicians, scientists, researchers, accountants, financial analysts but all we learned were about academics. They never taught us how to become entrepreneurs and money makers. They never trained us how to put up and profitably run a business as a nurse, engineer, academician, doctor or accountant.
Feel free to post comments and ask questions on some of the things mentioned here that you need to clarify or need to be informed further, and I will be glad to help you and my bias is more on the side of the investor because I do not sell or broker for anybody, but I do invest myself.
Other Related Articles:
1) How To Make Money In Real Estate (Even If The Market Is Down)
2) Make Money Online
3) Kids Can Learn To Make Money Too
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