Author Topic: Best Investment Instruments in the Philippines  (Read 570 times)

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MoneySensePH

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Best Investment Instruments in the Philippines
« on: May 16, 2014, 09:56:47 AM »
Best Investment Instruments in the Philippines

One common queries that some people ask me since the start of this New Year is “What is the best investment to invest into this year?”

Through PISO Ni Juan, I would like to share my thoughts about some investment opportunities you can lay your resources for modest income.

The three main sources of good investment income can be from the following;
Business or Entrepreneurship
Real Estate Assets
Portfolio or Paper Assets


BUSINESS OR ENTREPRENEURSHIP


Business involves the trading of goods, services or both to satisfy consumers’ needs. Business is not for everyone, though. I have known some highly successful professionals in the corporate world yet when they decided to start their own business ventures, all their capital and efforts went into scrap.

One of the major reasons a business fail is due to high overhead and operation costs especially during the startup period. Due to strong market competition, a start-up business should maintain low operations cost in order to compete in the market.

Having said this, the following businesses are good to consider.


Online Retail Shop

Online Retail Shops are almost zero in overhead costs. You can set up this business initially from your home. You can sell goods virtually like RTWs, electronics, books, jewelries and appliances without maintaining an inventory since these goods are mostly pre-order in nature  where a customer pay in advance for the goods. Once the payment is complete, the online shop will order the goods from the wholesaler; pay the goods through an online payment facility and drop-ship the goods directly to the customer.

Most Online Retail Shops in the Philippines utilizes existing merchant platforms and social networks to market their goods like Multiply, Facebook, Sulit, OLX, Buy and Sell Philippines and other free ads internet sites.


Internet Services

With every business today going online, the demand of certain professional services is rising fast. Among these professional services are related to web design and development, search engine optimization, web site content editing and article writing. If you have the skills and knowledge to fill these market demands, you might consider opening a business offering such services.



REAL ESTATE ASSETS


Real Estate is one of the best sources of income whether it is your primary source or your source of passive income. If you wanted to be successful in this type of venture you must have good skills on the following:
Property evaluation and appraisal skills
Construction costs estimates
Marketing skills to promote your real estate portfolio on sale


The three ways to monetize in Real Estate are the following:


Rehabbing And Selling

Rehabbing is the process of buying homes usually foreclosed properties, repairing or remodeling the property and selling the property to a motivated buyer at a higher price. This type of real estate business demands considerable amount of time and money. However, the investment returns is very high.


Flipping

Flipping is the method of buying a property usually at low cost and quickly reselling it as-is to another buyer for a profit . This selling process involves the so-called assignment or the transfer of rights over the property held by the seller as the assignor to the buyer which will be the assignee.  This method of real estate selling practice is growing fast among the Philippine real estate selling community.


Property Renting

Renting is the practice of buying homes or properties for the purpose of renting to tenants. Being the owner of the property, you will profit from the rental fees of your property’s tenants.



PORTFOLIO OR PAPER ASSETS


Portfolio or paper assets are best for investors who don’t have time to manage a business. These paper assets can be shares of stocks of PSE listed companies, units of participation of a unit investment trust fund or shares of a mutual fund.


Stock Market

To invest in stock shares, you need to have an online trading account before you can buy shares of stocks of PSE-listed companies. You buy your shares portfolio through your online trading platform and sell them at a future time to gain profit.

One of the best methods used in long term stocks investing is the Peso Cost Averaging method. Peso Cost Averaging limits the risks brought by the stock market volatility by buying shares in uniform cost at regular interval whatever the market condition is.


Unit Investment Trust Funds

UITFs are collective investments of numerous investors pooled together with the intention of achieving a certain investment objective.  Investing in UITF involves buying units from a trust fund managed and distributed by banks. You profit from UITFs by buying units of participation today and redeem at a later time when the value of the fund’s units is higher.


Mutual Funds

Same with UITF, mutual fund is professionally managed investment vehicle consists of pooled investments from numerous investors for the purpose of investing in securities to meet certain investment objectives. It is managed and distributed typically by insurance and investment firms and some banks.

There are two ways to profit from mutual funds. You profit by buying shares of participation today and sell your shares at a future time when the share’s price is higher or when you receive dividends issued by the mutual fund company.

credits: pesonijuan blogspot com

PesoRepublic.com | Your smart guide to money matters and entrepreneurship.

Best Investment Instruments in the Philippines
« on: May 16, 2014, 09:56:47 AM »

Mountain View

DonaldTrumpPH

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Re: Best Investment Instruments in the Philippines
« Reply #1 on: July 31, 2014, 04:11:57 PM »
there are many investment instruments that every filipino could try.... one could be the UITF or stock market.

PesoRepublic.com | Your smart guide to money matters and entrepreneurship.

Re: Best Investment Instruments in the Philippines
« Reply #1 on: July 31, 2014, 04:11:57 PM »

 

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