The best way to make your money work for you and accumulate wealth is through investing. When you invest your money wisely, it increases in value and yields returns for you. Hence, it is crucial to select the appropriate investments based on your short-term or long-term financial goals.
With so many options available, how do you start investing? If you’re just starting out, we’ll walk you through some of the best investment options that are low-cost, low-risk, and easy to manage. Here are some of our recommended investments for beginners.
1. Pag-ibig MP2
This is by far one of the most low-cost investments for beginners. Basically, it’s a savings account for Pag-ibig Fund members with a 5-year maturity. You can invest a minimum of P500 monthly or go for a one-time investment of a bigger amount. Although there isn’t really a set amount, Pag-ibig advises investing at least P30,000 in order to receive a larger dividend.
With a dividend rate of up to 8% annually, the Pag-ibig MP2 has a significantly higher annual dividend rate than other banks. Plus, it’s safe and tax-free because it’s managed by the Philippine government. If you’re an Overseas Filipino Worker (OFW), you can also explore how MP2 could benefit you.
2. SSS PESO Fund
Under the Philippine Social Security System (SSS), the PESO Fund (Personal Equity and Savings Option) is the equivalent of Pag-ibig’s MP2. You can start investing in a SSS PESO for as low as P1,000. While the MP2 allows you unlimited investments, the PESO Fund puts a cap of P100,000 at most per year. It also has an interest rate of up to 3% per annum based on Treasury Bond and T-Bill rates. While SSS Peso may seem low in dividends vs MP2, it’s still higher than the savings account interest offered by the majority of banks.
This investment feature in the GCash app is one of the easiest and cheapest investment options for beginners. With just a few clicks, you can invest for as little as P50. You can also choose your investment options based on your risk appetite. Your investment is managed by the ATRAM Group., a trusted asset management and financial advisory company. Learn how to get started on GInvest and check reviews to see if it’s worth it.
4. VUL Insurance
Variable universal life insurance (VUL) is a policy offered by insurance companies that combines investing and life insurance. A portion of the premiums you pay are invested, so in addition to receiving life insurance coverage, you also receive dividends. It’s a great idea for beginner investors because you have professional fund managers to handle your investments.
These are just a few investment options that are easy, low-cost, and relatively safe for beginners. Always do the proper research for the investment you’ve decided to make, regardless of how much money you’re saving. So, take the first step, and good luck!