In my previous post, I talked about why I got a Critical Illness Plan and why you should too. A Critical Illness Plan is something that would protect you, your family, and your investments if in case you get critically ill.
This time, I'll be talking about another investment that, instead of giving you health or life coverage, it will help you grow your money. Everybody is talking about inflation and we always get angry when prices go up and high. We all know that before, you can already buy a lot with just P100.00 but now, it is not even enough for a one-day meal. This is because we are not taught on how to manage our money and invest wisely. What we know is that when prices go up and taxes go high, it would affect us in one way or another.
So, how do we really grow our money? There are many ways and I would love to talk about all of them but for this blogpost, I will only talk about one way of growing our money. First, we must remember these 3 reminders from billionaire hedge fund magnate, Ray Dalio:
" Just holding your money in cash is a bad idea."
"That's the worst thing you could do because it is the surest tax on your money."
"You will bleed slowly to death, because the after-tax returns are lower than inflation by a little per year."
That basically means, we need to put our money somewhere so we cannot use them for something that we don't really need. It could be putting it in a bank (I will talk more about this on my next blogposts), making it as a capital for a business venture, or investing it in the stock market through mutual funds.
I'll talk about the latter.
Last year, I had a savings account in one bank and the money reached 5,000 pesos but I was so disappointed because it only incurred very small interest. I made a post on Facebook asking my friends what I can do with 5,000 pesos and where should I invest it to make it grow. There were many suggestions and one of my colleagues posted about mutual funds and I got interested right away.
According to Investopedia.com,
"A mutual fund is an investment vehicle made up of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets. Mutual funds are operated by professional money managers, who allocate the fund's investments and attempt to produce capital gains and/orincome for the fund's investors."
It simply means that by investing in mutual funds, we get to invest in different companies like Jollibee, BDO, SM, Universal Robina Corp., and San Miguel. We become shareholders in a way. You can actually invest in these companies on your own by means of trading but if you're a newbie like me, let professional fund managers do it for you and make passive income year after year.
So where did I invest my 5,000.00? I invested it with Sun Life Prosperity Funds. They assessed me in terms of being a risk-taker and my priorities in terms of investment. With this, they then suggested a particular mutual fund that suited me. You can even check the status of your investment real-time through their mobile application.
That time, 5,000 pesos was the minimum amount to invest but I was so happy to know that they lowered it down to 1,000 pesos. This is to accommodate more people from different walks of life that would want their money to grow.
So, if I were you, consider investing your money to mutual funds. You can start with 1,000 pesos and add more as you go along.
Happy investing!
Note: I am in no way connected to Sunlife Financial. I only shared based on experience.
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