GCASH, the country’s leading mobile wallet powered by Globe, is now offering GInvest which is an investment product that lets you invest for as low as Php50, with no commission or sales fees. But is it worth it?
My GCASH Experience
Back in May 2021, this writer invested Php1,500 on GInvest while writing the GInvest guide article for Business News Philippines. The small investment was something I did to test the system and check whether my money will actually grow (or not) using GInvest.
But just a little over 1 month later, I withdrew my money. Here are my reasons:
- I badly needed some cash.
- My money didn’t see any growth the past month, only losses.
Of course, investments like this aren’t guaranteed and it’s always possible to incur losses unless you’re willing to let your money sit until you get a good interest rate before you withdraw.
Lessons from My GInvest Experience
My time with GInvest was really short, but it made me realize some things – not just about investing on GInvest but investing in anything, whether another investment vehicle or a business.
Lessons and insights that I learned from my GInvest experience:
- Only invest money that you’re willing to lose because interests are never guaranteed. Just like me, you might end up losing some (or even all!) of your money.
- Only invest your extra cash or, like me, you’ll end up withdrawing your investment if you badly need some cash. That said, make sure to build your emergency funds first.
- Be patient. Your money won’t grow overnight. It could take a couple of months, even a year (or years!) before you can see some profits. I wasn’t able to wait because I needed the money.
- Things aren’t as quick as GCASH promises it to be. Though GCASH says it’s easy to do it, the investment was actually processed and accepted after 5 working days – and withdrawal took 7 banking days! There are no fees, but getting your money back isn’t going to be quick.
- Because I withdraw my money early, I ended up incurring losses instead of gaining any interest. My initial Php1,500 investment ended up becoming just Php1,488.82 when I withdrew it.
So, do I recommend GInvest and will I invest again? Well, I’d take up my own advice and build my emergency fund first before trying to invest again.
But if you have some extra cash, then you can wait for your money to grow before you withdraw it – and that might mean you’ll gain some profits from this investment vehicle.
Frequently Asked Questions (FAQs)
Can I lose money in GInvest?
Investing in financial markets usually carries some amount of risk. That risk is minimized on GInvest because the funds are professionally managed. In comparison to investing directly in the stock market, this entails less risk.
Returns on investment in financial markets are not guaranteed. The market value of investments can also decrease depending on market performance. Thus, the money are not depositsand are not protected by the Philippine Deposit Insurance Corporation (PDIC).
When it comes to our earnings as well as for our losses, the same principle applies. It will exist only on paper until we sell our shares. Thus, it is not recommended to sell your shares when the price is down.
Is it good to invest in Gcash?
GCash investment is ideal for beginners because it does not require a large initial of money. The app assists you in selecting a suitable investment option based on how much risk you are willing to face. This prevents you from biting off more than you can chew. You can start at a minimum investment of P50.
Real estate, mutual funds, stocks, and bonds are just a handful of the investing alternatives available to you. Keep in mind that not all investments are suitable for beginners. Certain risks are associated with certain forms of investments.
How do you earn money from GInvest?
According to GCash, investment funds are pools of money from multiple investors who agree to invest collectively by committing their money to a professional fund manager, who invests the money in various financial assets such as stocks and bonds.
ATRAM Trust Corporation, one of the country’s largest independent asset managers, and SeedBox Philippines, a business that pioneered digital investing in the Philippines, handle the GCash investment funds.
Under GInvest’s lending investment products, funds will be utilized for short-term or long-term loans, and we earn through the interest it acquires. The investment is normally safe, although it generates less profit.
Under the equity investment products, Our money here enables us to become part-owners of various businesses. When the firm succeeds, we as shareholders receive a part of the profits. However, we also suffer losses when they flop. Equities is considered as a high-risk, high-reward investment.
How to withdraw GInvest in Gcash app?
When you withdraw your investments on Gcash, it means you are selling your orders. To sell your orders, follow the steps:
Step 1. On the GInvest Dashboard, click on view investment products.
Step 2. Select the fund that you have an investment in by tapping view details.
Step 3. Tap on “Sell”
Step 4. Enter the amount you want to sell then tap “Next”
Step 5. A User Agreement will pop-up that shows the Redemption or Sell Order Disclaimer, you just have to confirm that you agree to sell your shares.
Step 6. You will proceed to the confirmation page.
You will receive a text message confirming your Sell Order. You will have to wait for 7 business days for the transaction to be completed. There is a link where you can track your order.
If you haven’t received your funds after the processing time, you can reach Gcash help center and prepare the following:
- GCash number
- Amount of redemption
- Transaction number (As seen on SMS from 2882)
- Order number (if available)
How much is the interest of Gcash investment?
GInvest’s interest rates are arbitrary and can fluctuate based on the fund’s performance. A fundamental investment principle is “High return, high risk. Low return, low risk.”
On the other hand, the GSave powered by CIMB is assured and fixed–at 3.1% to 4%