11 Best Investments for Millennials in the Philippines [Under 100K]

Got a 100k and don’t know what to do with it? Well, you’re lucky because we’re giving you the 11 best ways to invest and grow that money!

Don’t let it just sit in the bank. With low-interest rates from 0.5 to 1.5%, you’re better off investing it elsewhere.

And even if you don’t have a lot of cash saved up, there are still many ways to let your money work for you.

For many young professionals and entrepreneurs – in this information age – it’s conventional wisdom to consider investments early on.

Especially for young Filipinos, the time to think about investing is NOW.

If you want a more secure and brighter future for yourself, you shouldn’t put investing on hold.

What is an Investment?

An investment is a purchased item or asset that a buyer can identify as something that would appreciate its value in the future and can be sold at a higher price. It can also be viewed as an asset that can enable its owners to generate passive income and create wealth over time.

What is Investing?

Investing is using your money as capital to buy assets that can produce more money for you in the future.

It’s basically letting your money do the work for you.

Types of Investments

Stocks, Bonds, Annuities, Commodities, Real Estate and more. I bet we all scratched our heads the first time we tried to know more about these financial terms. We get overwhelmed with all the technical jargon and get buried with a ton of information that just doesn’t make sense.

This guide aims to shed some light on the different types of investments available out there to help you achieve your financial goals. Learning about them will open up ways and ideas for multiplying your money quickly.

Here’s our quick rundown of the different types of investments:

  1. Bank Products

Perhaps the most popular and common of all investments, Bank Products come in different options. The money you deposited are federally insured to up to a certain limit and can be easily withdrawn. The following are types of Bank Products: Savings Accounts, Certificate of Deposits (CDs), Money Market, and Federal Insurance.

  1. Bonds

Bonds are loans offered by an investor to governments and corporations. In exchange, the borrower will pay the interest on the borrowed money at a predetermined schedule (Annual, Semi-annual) and will need to return the principal on an agreed upon maturity date.

  1. Stocks

Put simply, Stocks are units of ownership in a corporation. This means that if you own or invest in stocks of a company, you become one of its “owners”.

  1. Investment funds

Capital or Money that is sourced from different investors. A mutual fund is one of the most common types of investment fund.

  1. Annuity

Money that gets paid at fixed intervals to an individual at an agreed upon time. That individual will first need to pay for the Annuity in one lump sum or through a series of payments also known as “Premiums”.

  1. College fund

Saving money for college expenses in the future. Earnings of the money deposited in a College Fund are not subjected to Federal and State tax (depending on the location) as long as the funds are strictly used for college expenses only.

  1. Business capital

Simply put, money that you put into a business to gain (active or passive) earnings or income.

  1. Retirement fund

A way to have income cash flow upon retirement. While still able, workers can put money into a Retirement Fund and receive pension once they retire.

  1. Commodity Futures

An agreement or contract designed to buy or sell a specified amount of a commodity at a fixed price and future date. This helps protect buyers by negating risks caused by fluctuations in price of the commodity in the future.

  1. Security Futures

Similar to Commodity Futures. However, instead of commodities, its an agreement to purchase and sell a fixed amount of shares of a particular stock at a specified price on a specified future date.

  1. Insurance

Insurance is essentially protection against potential financial loss, damage or harm. The Insured/Policyholder pays “premiums” to buy a “policy” that states the terms and conditions in which the insurer is required to pay.

  1. Real estate

Real Estate investing aims for the generation of income or profit through purchasing, leasing, managing or selling a piece of realty property for a higher price than it was acquired (when the property’s value appreciates over time).

  1. Alternative and Complex Products

Alternative and Complex products are other optional investment vehicles outside of traditional stock and bond investments. Some examples of this are Notes with principal protection and risky high-yield bonds that have low credit ratings. Most are risky but provide high rates of return.

How Much Money is Needed to Start Investing?

The short answer: Not much.

If you’re just starting out as an investor, you don’t need five or six-digit figures from the get-go. Anyone—even college students and fresh graduates—can start investing with as little as Php 25 to Php 5,000.

The actual initial investment depends on where you’re putting money in and the bank or investment company that will handle your funds.

Here are the required initial investments for the common investment vehicles in the Philippines:

Investment Vehicle Minimum Initial Investment Minimum Additional Placement
Mutual funds Php 100 to Php 5,000 Php 100 to Php 1,000
Stocks Php 5,000 to Php 1 million Php 1,000
Time deposit Php 1,000 to Php 100,000 N/A
UITF Php 25 to Php 10 million Php 50 to Php 1 million

How to Start Investing with Little Money

The advantage of growing your money through investments is that you can start small.

There’s no excuse not to get started even if you’re a breadwinner with a lot of bills to pay, as you can increase the amount you invest later on when you’re more financially capable.

But it’s important to note that you should never begin an investment journey without a solid strategy.

Take these initial steps to invest even with a small amount of money.

1. Determine how much you can afford to invest

This step is crucial if you plan to invest regularly in the long term.

You don’t want to invest a certain amount initially and then stop it altogether after a few months because you could no longer afford the monthly, quarterly, or yearly investments.

Before you start off, set a realistic and reasonable amount to invest, taking into account your income, expenses, and savings.

2. Save up for your emergency fund

A common mistake many first-time investors make is jumping right into investing without having an emergency fund.

When a financial emergency happens (like the hospitalization of a family member or the need for home repairs after a typhoon) without emergency funds stashed away, you’ll have no choice but to withdraw your funds or sell stocks prematurely.

Ideally, you need to build an emergency fund equal to six to 12 months’ worth of living expenses before starting to invest.

Make the process easier by putting away a small amount every week or payday.

The Philippine Stock Exchange (PSE) recommends putting the emergency fund in short-term, liquid investments such as savings accounts and time deposits.

You can invest the rest of your savings in medium-term or long-term instruments, depending on your financial goals.

3. Put your money in low initial investment vehicles

Look for investment opportunities that allow you to begin investing with a minimal amount.

The best investment vehicles for this purpose are mutual funds and UITFs. When you put your money in these instruments, you can invest in a diversified portfolio of bonds and stocks with just a single transaction.

Here are your options in the Philippines with initial investments ranging from Php 25 to Php 1,000.

Mutual Funds
Fund Name Minimum Initial Investment Minimum Additional Placement
Sun Life Prosperity Money Market Fund Php 100 Php 100
Philam Managed Income Fund Php 1,000 Php 500
Philam Bond Fund Php 1,000 Php 500
Sun Life Prosperity Bond Fund Php 1,000 Php 1,000
Sun Life Prosperity GS Fund Php 1,000 Php 1,000
ATRAM Philippine Balanced Fund Php 1,000 Php 600
Philam Fund Php 1,000 Php 500
Sun Life Prosperity Balanced Fund Php 1,000 Php 1,000
ATRAM Alpha Opportunity Fund Php 1,000 Php 600
ATRAM Philippine Equity Opportunity Fund Php 1,000 Php 600
Sun Life Prosperity Equity Fund Php 1,000 Php 1,000
PAMI Equity Index Fund Php 1,000 Php 500
Sun Life Prosperity Philippine Stock Index Fund Php 1,000 Php 1,000
UITFs
Fund Name Minimum Initial Investment Minimum Additional Placement
Unlad Kawani Money Market Fund PHP 25 PHP 25
ATRAM Peso Money Market Fund PHP 50 PHP 50
ATRAM Total Return Peso Bond Fund PHP 50 PHP 50
ATRAM Philippine Equity Smart Index Fund Php 1,000 Php 1,000
ATRAM Global Dividend Feeder Fund Php 1,000 Php 1,000
ATRAM Asia Equity Opportunity Feeder Fund Php 1,000 Php 1,000
ATRAM Global Technology Feeder Fund Php 1,000 Php 1,000
BDO PERA Short Term Fund Php 1,000 Php 1,000
BDO Merit Fund Php 1,000 Php 1,000
BDO PERA Bond Index Fund Php 1,000 Php 1,000
BDO Institutional Equity Fund Php 1,000 Php 1,000
BDO PERA Equity Index Fund Php 1,000 Php 1,000

11 Best Investment Vehicles for Filipinos

Here are the 11 best investments in the Philippines that every hard-working Pinoy should consider.

1. Insurance (VUL)

Minimum Investment: Php 2,000 – 3,000

Life Insurance is something every young professional should consider.

Having an insurance is necessary if you’re thinking about getting a house or a car. But more importantly, insurance is a must if you want to ensure that yours and your family’s lives are secured.

Did you know: Only 47% of the Philippines’ population have life insurance (while US have 59% of its population insured).

What is VUL?

Something that people should look into is a Variable Universal Life Insurance or (VUL). According to Investopedia, a VUL is a form of cash-value life insurance that offers both a death benefit and an investment feature.

It is basically a type of insurance bundled with an investment component. You’re insured but you can also have the option to invest your money. It’s ideal because you get the best of both worlds.

Aside from that, there are other benefits to VUL that differentiates it from other traditional insurance policies, such as flexible premiums.

Any excess amount you add to the premium will go to your accumulated funds. In case of a financial emergency, on the other hand, you can choose to only pay the charges without the plan lapsing.

And speaking of financial emergencies, one great feature of VUL is its liquidity. You can still access your funds in times of need. And unlike traditional policies, this is treated as a withdrawal and not a loan.

Meaning the amount withdrawn does not incur interests. Although it is encouraged that whatever amount was withdrawn should be immediately reinvested to keep on track with your financial goals.

Tips on getting VUL/life insurance

  • Do you really need life insurance? – Ask yourself if you really need insurance. If you have dependents then the answer is probably yes. But if you’re a single career person with no family as of now. You can consider putting it on hold if you don’t have the extra cash to spare.
  • How much do you need? – If you’re thinking about retirement, ask yourself what your projected retirement fund will be. Will it only cover the replacement of your actual income or will it include expenses for leisure? That’s something to think about when getting your plan.
  • Get Quotations and Plans from Insurance Companies – Call different insurance agent and ask for quotations or get them to send you proposals through email. This way you can pick and choose what would be the ideal plan for you. Most insurance agents now have tools that generate quick client policy proposal.
  • Avoid Additional Insurance or Add-Ons – A lot of the agents you will encounter will push for additional insurance or add-ons because of targeted quotas which will mostly just benefit them and the insurance company. Stick to your basic life insurance. But it is advisable to get a critical illness add-on. You may never know if or when you’ll get a serious health problem.
  • Get an Independent Financial Planner – Agents have a tendency to be biased about plans because of their quotas. So, it’s advisable to get an independent financial adviser who is paid to advise you and not to reach quotas based on plans and add-ons. It’s not necessary to do this but if you have extra cash to spend on a financial planner, get one.
  • Get it now – The younger you are the cheaper the plans are. There’s no time like today to get a plan.
  • Stable – Of course you have to make sure that the insurance plan you’re getting is from a reliable and stable company. Call the insurance company, or the insurance commission, and search the web. Look for reviews and research the company. Make sure they are legit.

Read Next: Best Life Insurance Plans in the Philippines (VUL & Traditional)

2. Micro-Lending & Peer-to-Peer Lending

Minimum Investment: $25 (Php 1,250)

Another investment option young professionals and investors can get into is Micro-lending and peer-to-peer lending.

What is P2P Lending?

Peer-to-peer lending is the borrowing and lending of money through a platform without going through traditional means like the bank or other financial institutions.

What happens is, usually, an online company will bring together borrowers who need financing and lenders who would like to invest their money and earn through interest rates.

People are attracted to P2P because it cuts out the middleman – which is the bank, and provides better deals for both the borrower and the lender.

Because rates are a lot flexible compared to banks, borrowers can get relatively cheaper interest rates while the lender can still profit from a decent amount of interest rate.

Popular P2P Lending platforms:

Tips on investing in P2P lending

Here are some tips to consider according to Paula Pant, from Student Loan Hero.

  • Research before you invest – This should be a no-brainer but it is something you must keep in mind. Research about the loan history of the company you’re going to choose to invest in. Look into things such as the percentage of borrowers who default (unable to pay back) and how they screen the borrowers. Also ask about the average returns of investors in the past and how they handle late payments.
  • Go slow – You don’t have to invest largely in one borrower. Take advantage of the fact that you can start investing at only $25.
  • Diversify your loans – As what was mentioned earlier, you don’t have to go big with just one borrower. Diversify your loans. As the saying goes, don’t put all your eggs in one basket.
  • Reinvest your returns – You don’t have to cash out your returns once you can. Consider reinvesting them into new loans.

Read Next: How to Invest in Peer-to-Peer Lending in the Philippines [Complete Guide]

3. Stocks

Minimum Investment: Php 5,000 (First Metro and COL Financial)

People may stay away from stocks because of having no knowledge about it. Most even just prefer to let their money be stagnant and stay in a bank.

But knowledge can be acquired so it shouldn’t stop you from investing in stocks considering it could make your money grow exponentially.

Investing in stocks allows you to buy shares of companies, you won’t be able to buy under normal circumstances, said Marvin Germo, author of Stock Smarts.

“The stock market gives you the opportunity to buy in companies, like partnering with SM, GMA, Jollibee,” he said.

Tips on investing in Philippine Stock Market

  • Learn everything you can – Being too confident in the stock market can also be too risky. Learn from the books and experts first. Do your research, learn the terminologies and all the tricks, buy books, and attend seminars. If you can, get a mentor. Do everything you can to be knowledgeable on the stock market.
  • Know your risk profile – Are you cautious or are you a risk taker? Your personality should reflect the stocks you buy. According to Marvin Germo, there are stocks that are volatile, with a great potential to go up but also a great potential to go down. Some are just steady but when the market goes down, the impact to the company won’t be as bad. Consider what type of stock would fit your level of comfortability.
  • Buy Low Sell High – Buy stocks only when the price is below the “Buy Below Price”. The Buy Below Price is a level at which capital appreciation potential is already attractive relative to the fair value estimate. Any price below this is considered optimal to buy.

Want to get started with stock trading and investing? Check out our Beginner’s Guide to Stock Trading and Investing.

4. Mutual funds & UITF

Minimum Investment: Php, 5,000

What are Mutual Funds and UITF?

A Philippine Mutual Fund is an investment company registered with the Securities and Exchange Commission (SEC), which pools money from many investors creating a massive fund under a common objective.

This fund is then invested in specific types of securities to achieve the stated objective.

UITF or Unit Investment Trust Fund, on the other hand, has the similar functions of a mutual fund, but the main difference is that the fund is managed by a bank (instead of a mutual fund company).

This type of investment is ideal for young and new investors because you’re investing your money to experts who would know what to do to make your money grow.

There are four main types of mutual funds & UITFs offered:

  • Money Market Funds –invest purely in short-term debt instruments (one year or less).
  • Bond Funds– invest in “bonds” which are really long-term debt instruments offered by governments or corporations.
  • Balanced Funds– invest in a mix of shares of stock and bonds.
  • Stock / Equity Funds– invest primarily in shares of stock.

Tips on Investing in Mutual Funds

  • Go with Competent Fund Managers – You’re basically entrusting your hard earned money to a third party company. So you must ensure that the fund managers they have are competent enough to bring growth not losses. A good way to know is to look at the consistency of the fund performance at least in the last five years.
  • Add Regularly – Although you can start at a low price of Php 5,000 and there is no required regular addition. It is advisable to add regularly and use it as kind of your piggy bank for your long term goals.
  • Assess Risks – All investments have their risks, so it’s important to do risk assessments. Online brokers who offer mutual funds usually have their risk assessment questionnaire which will help you decide which type of mutual fund is best for you.
  • Set Goals and Objectives – Like with any other investments you must know why you’re investing. Is this for your retirement, leisure, capital for your future business endeavors? Be clear on where you want this to go to make the best decisions. Newbies may become disheartened when they see losses even if they still haven’t reached the end of their time frame. As with stocks, you must be patient enough to see your investments grow.

Useful Resources:

5. Small Business

Minimum Investment: Php 5,000

Small business is another investment that you shouldn’t pass up. A lot of people might not be inclined to try this out because of the fear of failure. But why should that stop you?

Failure is just a part of life and taking risks is important if you want make your money grow.

But if you’re still apprehensive, you could always start small. With just 5,000 pesos, you can get into the food business. You can go with street foods, gotohan or mamihan.

If you’re the type of person who likes Karaoke, with a few more money (around 25,000), you can do Karaoke rentals. There are several options for those who want to start a small business for under Php 100,000.

You can also check out our massive list of small business ideas.

Tips on starting a small business in the Philippines

  • Find your passion – A lot of people wonder what they should sell, finding your passion can be important because it will help you push through with your business even if the going gets tough. If you have the passion for fashion, selling clothes would be ideal for you.
  • Secure Funding – Your funding will cover 2 types, Pre-operating (equipment, stock, deposits, permits, etc.) and Working Capital (salaries, rent, utilities, supplies, and contingencies). It’s advisable to secure funding for at least 6 months of operation.
  • Build a website – We live in the age of the internet and social media. So, having a website is essential these days. Your website is the digital address of your business. And it’s also basically your digital store. Having a website or at least a social media account can provide you with a digital presence and also social media marketing opportunities.
  • Network with other people – The more there are of people who know about your business, the better the business will be. So, as was mentioned above, online presence is crucial. Word of mouth is also great, but you get a wider audience through social media. Connect with people both online and offline. Attending seminars and business conventions is also a way to network.
  • Consult Experts – Getting a mentor or at least some form of advice through experts is always important. You will learn from the experiences of those who have made it. If you can’t find a mentor in person, find mentors in books or go online. Watch seminars on Youtube or search for business articles written by experts.

6. Real Estate (foreclosed properties)

Minimum Investment: Php 10,000 – 15,000

For those who would like to own houses through installment, there are cheap mortgages that would only cost Php 2000 – 3,000 a month.

Another investment to of course consider is real estate. If you’re thinking about owning a property but you’re wary about how much you want to spend, you may consider buying Foreclosed Properties to get a cheaper deal. For as low as Php 11,000 you can own a foreclosed land.

Tips on Buying Foreclosed Properties

According to Lamudi.com, here are some tips for buying Foreclosed Properties:

  • Get Your Financing Ready – When you already have a housing loan approved by the bank, sellers will take you more seriously. And so, you’ll get more negotiating leverage compared to other buyers.
  • Attend Property Auctions – Attending these auctions will be a great way to discover properties not usually on online listings.
  • Inspect the Property – You shouldn’t ever buy anything without properly inspecting it. You must see for yourself if it’s worth your money.

Tips on Real Estate Investing

  • Be Goal Oriented – Ask yourself what you want to achieve in real estate investing. This way you can have a vision of what you want to get from investing and will also keep you determined. If you think real estate can be the easy money you’ve been searching for, well nothing in this world can really be called easy money. There will be challenges but having a vision and determination can keep you in track.
  • Learn as much as you can about Real Estate – You need to familiarize yourself with the “ins and outs” of real estate transactions in the Philippines. Do research on the subject.
  • Attend Seminars – Just as was mentioned above, you’d have to learn a lot about real estate and one of the best ways to do that is to attend seminars and conventions on real estate. Not only can you learn from experts but you can also check out potential properties.
  • Join or start your real estate investors club – This is a great way to network and find out more from fellow investors.

7. Cryptocurrency

Minimum Investment: $20 – $1,000 (Depending on the Cryptocurrency)

What are Cryptocurrency?

If you’ve never heard of Bitcoins or cryptocurrency, don’t worry. It may be an unchartered territory for many people but it’s basically a simple concept.

Cryptocurrency is simply digital or virtual currency that people on the internet use to trade. It uses cryptography for security to ensure the safety of the traders. It’s most appealing feature is the security from the government that it offers. Because your currency is encrypted, the government can’t monitor it.

Bitcoin is mainly the most well-known type but there are other types of cryptocurrencies that are actually cheaper and might be more ideal for you.

Now you may try to avoid this because of the sketchy ways cryptocurrency can be used. But Bitcoins and cryptocurrency are legal depending on where you are and what you plan to do with it.

The Central Bank of the Philippines has issued a warning on virtual currencies but has stated that they are not subject to any regulation.

Tips on Cryptocurrencies Investing

  • Invest in Fund Management Platforms – As was mentioned above, cryptocurrency can be treated like stocks where fund managers can handle your investment. You can even invest in mutual funds.
  • Use it to solve problems – Find opportunities to use cryptocurrency to solve problems such as providing an alternative to traditional banking services. Some people cannot get access to traditional banking services whether due to geographical reasons or other circumstances. You can use this opportunity to provide access to products and services people cannot otherwise acquire.
  • Crypto to Money – Don’t forget that Cryptocurrency can be exchanged for money. You can use this to trade with people who are in need of cryptocurrency for products and services physical money cannot buy.

Check out our Beginner’s guide to Cryptocurrency Investing.

8. Buy a website (for passive income)

Minimum Investment: $200 – $1000 (depending on the bid)

Buying a website is something you should definitely consider. If you don’t want to go through the hassle of building a website and gather an audience for that site, then buying a readymade one that’s already profiting is definitely advisable.

It’s a great and easy way to acquire a passive income. You can check out Flippa.com to look for websites being auctioned.

Tips on Buying a Website

  • Know the History – You must know about the site’s history before buying it. Know about its net worth, how old the site is, and if it is legit. Just because it’s saying it’ll earn you $10k a month doesn’t mean it really will. Usually the older sites are the most trustworthy ones.
  • Be familiar with the Platform – Is it WordPress, Joomla, or something else. This will make it easier for you to know the experts who can operate the platform.
  • Demographics – Find a site that targets the demographic you want to reach.
  • Traffic Quality – The more the visitors, the more money you’ll earn.
  • Maintenance Cost – How much will this site cost to maintain? How many staff do you need to run the site? These are things you must consider.
  • Price – Something to definitely consider to make sure the site is legit, an average site would cost around $2500. Although there are sites that cost lower, this can be considered a red flag.

9. Forex Trading

Minimum Investment: $100 (Php 5,000)

According to FXCM, Forex, also known as foreign exchange, FX or currency trading, is a decentralized global market where all the world’s currencies trade.

The forex market is the largest, most liquid market in the world with an average daily trading volume exceeding $5 trillion. So, it would really be advisable to dip your toes into foreign exchange trading if you want to grow your investments.

Tips on Forex Trading

  • Choose a broker wisely – Choose a broker that will allow you to do the analysis you require. You must know each broker’s policies and how he or she goes about making a market.
  • Perform weekend analysis – At the end of the week, when the markets are closed, review and analyze weekly charts to look for patterns or news that could affect your trade.
  • Practice Makes Perfect – Like with any practical skill, trading is something you learn and improve on as you go along. You won’t be an expert on your first try but with constant practice you can be successful in the Forex trading business.

10. Angel Investing (Venture Capital & Private Equity)

Minimum Investment: P50,000

What is an Angel Investor?

Let’s break it down real simple. Say you want to launch your own food delivery business but don’t have the capital to begin with. After hearing about your plans, your uncle offers the necessary funding.

In exchange, he just wants the capital paid back plus 10% gain. Payable in 3 years. Happily, you accept his offer. “Thanks, tito! You’re an angel!”

You’re tito is an Angel indeed—an Angel Investor, to be exact. Often called “informal investors”, they are affluent folks who provide capital funding to start-ups in exchange for some gain or equity in the business.

What is Venture Capital?

Continuing with our scenario earlier, the money you received from your uncle is called “Venture Capital”. If you’re familiar with the tech industry, you hear about this a lot. Uber, Twitter, AirBnB, and a host of other big-name companies all received venture capital to kickstart their business.

In return, their success brought sky-high gains to their investors.

What is Private Equity?

It refers to monies or funds not included in a publicly listed exchange (e.g stock market). Funding injected by investors into a company in exchange of 100% ownership or control of the company is what makes Private Equity different from Venture capital.

How to Become an Angel Investor and/or Venture Capitalist in the Philippines

Join a network of Angel Investors

This site stands as a middleman between entrepreneurs needing funding and investors. Once you’re registered as an investor, you can proceed to choosing among the list of business proposals that you deem most worthy (and profitable) of your investment.

Start small

Most people don’t know this, but you don’t need to be uber-rich to be an angel investor or venture capitalist. If we’ll use our scenario earlier, your food delivery business might only need Php 100k to get everything up and running. It really depends on how big the project is and how much capital it requires.

There are a ton of established businesses in the country that are looking to expand, which you can easily fund for as low as P50,000.

Tips on Angel Investing

1. Have a deep understanding of what it takes to run a business

As an investor, your main job is to provide funding. However, the success of your picks will highly depend on how well you understand the nature of their business.

Most successful angel investors and venture capitalists are stringent in their selection process, often going through several rounds of in-person meetings and reviews. This helps in making sure they are not betting their money on a high-risk venture.

2. Connect with Angel Investors and VCs in the country

It wouldn’t hurt to try asking for an hour of their time to get a primer on the whole thing. A simple gesture of taking them out for lunch to pick their brains may work surprisingly well in some situations.

Most of these people are kind enough to share their knowledge. And if they can’t meet you face-to-face, online correspondence is still highly valuable.

3. Invest in something you’re familiar with

When we invest in something, it’s usually on something we truly believe in, or very familiar with.

Why? Because it takes out a lot of the guesswork figuring out stuff from the beginning. Your existing knowledge about the product or service allows you to ask the right questions.

It also gives you better insight on the future and success of the venture.

4. Don’t go all in

In just a single investment, that is. As cliche as sounds, “spreading your eggs in several baskets” also applies in venture capital.

Not only will it allow you to lessen the risk, it also opens up your pool of money to more promising investments (negates opportunity-loss).

5. Develop an investment game plan

World-renown investor Ray Dalio operates on a set of core “Principles” (the title of his book) that serves as his checklist to guide him on decisions—both in life and investing.

As an angel investor or VC, it’s a good idea to come up with a solid plan that answers important questions like:

What’s my expected ROI and when will I hit it? How much capital am I willing to invest during the course of the start-up? What type of involvement does this company require from me?

6. Try investing with a partner

Or better yet, several others. Investing is risky. In fact, most venture capitalists in the US fail.

If you’re just starting out, it might be a good idea to team up with others so you won’t have to shoulder the whole start-up capital.

Sure it will reduce your potential gains but at least you’ve significantly reduced the risk.

How do Angel Investors make money?

After putting in significant funding into a business, Angel investors recoup their investments (and more) once the company starts seeing success. For example, an app or SaaS-type of company may begin growing its user base and starts getting paid for their offering.

This influx of revenue will naturally result to growth and increased chances of getting really massive (Uber, AirB&B to name a few).

While it’s mostly a hit-or-miss situation in the VC industry, the potential returns are enormous when you chance upon a real winner. It is said in the US, the average industry standard assumption for getting a winning portfolio is 10 investments.

Out of the 10, 6 will most probably be losers, 2-3 might break even or give slight gains, and (hopefully) your last one hits home run. The winning pick should be big enough (10x your minimum investment) to make the whole thing profitable.

11. Invest in New Skills

Minimum Investment: Only your time and effort

Investing in new skills and yourself is something that people tend to forget but is very important whether you want to invest in business or not. You don’t have to go to a formal school to learn new skills. But if you have the money, you can take courses or even get a post-grad degree.

For those who don’t have the money for expensive degrees, here are other alternatives you can consider:

  • Seminars and Workshops – There are seminars and workshops you can attend to, some for as low as Php 1,000. As was mentioned above, you can take seminars for investments in real estate and stock markets to name a few. It will also be a great way to meet peers who are interested in the same endeavors.
  • Books – Books are investments. If you want solid knowledge on any subject matter, then buying a book on it is always a wise decision. The trick to reading a book if you’re busy is to look at the table of contents and to just pick chapters that would seem more applicable for you. This way you won’t have to read the whole book.
  • Youtube – Youtube is a website that is truly helpful for no cost. You can learn any skill from watching thousands of free videos on any given subject, may it be Bitcoin, Forex, stocks. You name it. The site is a wealth of information you can access with just your smartphone.

How to Choose the Best Investments in the Philippines

Filipinos are known to be risk-averse when it comes to investing. You’re probably one of those who are wondering what kinds of investments give the best return.

The best investment yields high returns with minimal risk.

But are there really low-risk, high-return investments in the Philippines?

This may sound impossible, but you can find them if you know where to look.

The key is to check low-risk investments such as money market funds and bond funds (through mutual funds or UITFs) with the highest returns.

Money market funds and bond funds are both invested in low-risk, fixed-income securities. Time deposits and government T-bills comprise money market funds, while corporate and government bonds comprise bond funds.

To view the best-performing investments, visit the Philippine Investment Funds Association (PIFA) website for mutual funds and the Unit Investment Trust Fund Philippines website for UITFs.

How to Invest your Money Wisely

1. Diversify, diversify, diversify

With the multitude of options provided in this article, it will be foolish to choose only one and invest all of your money in it. As what has been said earlier, putting all your eggs in one basket will be a bad idea.

Pick two or more investment options. This way if one fails you can still rely on the other. More importantly, if all will become successful you’ll generate more income.

2. Don’t worry, just grow your money

Worrying too much and panicking won’t help you or your investment grow. Sometimes relaxing and taking some rest to reorganize your mind and your priorities are important too.

If you think too much about failure, you’re already failing. Just sit back relax, and let matters take its course.

3. No regrets, it’s just cash

If one investment fails don’t dwell on it too much. Especially if it’s in stocks, forex, or cryptocurrency. Expect that there will be losses. But keep a positive mindset.

And it’s very vital to only invest the money you’re willing to lose.

4. No day, but today

There’s no better time to start an investment but now. You’re still young so if you decide to start now, you can become a millionaire not in your 60s but in your 40s or even 30s. So, don’t just sit there, invest now!

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This content was originally published here.

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