25 simple investing tips for beginner investors

Tips before you invest

1. The best investment you can make is in yourself – before you start investing for your life goals, make sure that you’ve got yourself protected against loss of income, accidents, illness, and even death. If you aren’t adequately insured, it could leave you and your family in a bad financial situation.

Having adequate insurance means you will not tap into your investments and resort to early withdrawals, even if life throws you an emergency.

2. Set aside time to write down your specific goals for investing - According to Tony Robbins, setting goals is the first step in turning the invisible into the visible. A good question to ask yourself would be, how much money do I need after X years and for what purpose?

3. Know your investment personality. Take this test to find out your risk profile.

4. Build up your confidence by learning the basics of investing. You don’t need to become an expert. Reading credible articles online about investment in the Philippines or watching YouTube videos on how to grow your money a few hours a day may be all you need to understand common terms and languages used in investing. This will help you on the next tip.

5. Speak with a financial advisor. If you followed steps 1 to 4, chances are you can now clearly discuss your investment goals with a financial advisor and confidently explore investment options that are right for you.

Where you can start investing

1. A mutual fund can be the best investment type for new investors. It allows you to pool your money with other people into one professionally managed investment.

2. It’s easier to start investing in a mutual fund than you think. The hardest part is taking the first step. All you need is P1,000 to start.

3. Select the type of mutual fund that will fit your risk profile. Conservative investors may choose money market funds, bond funds, and balanced funds. Aggressive investors who can take on more risks to grow their money may choose stock funds or equity funds.

4. Take advantage of target date funds. Target date funds are ideal for addressing a financial goal slated for a future date, such as retirement or funding a child’s education. The fund manager actively oversees the portfolio to ensure that your investment grows over a period of time and is ready at the time you need it. Check out the Sun Life Prosperity Achiever Funds for 2028 and 2038

5. Consider 2-in-1 investment products that combine protection and fund appreciation. Examples of investments in the Philippines that you can try are comprehensive insurance plans that combine life and health protection with special bonuses and annual dividend earnings.

On avoiding scams

1. Only invest in reputable financial services companies that are trusted for generations and have proven track records.

2. A registered financial planner can be the best source of advice when it comes to investing. They are certified professionals who are qualified to give financial advice. They know the best options for investment in the Philippines and can offer suitable financial products to their clients without thinking so much of commissions or reaching sales quotas.

3. Learn and practice to say “NO” with conviction. This will save you time from product pitches that you’re really not interested in and steer you away from dangerous investment traps.

4. Follow the 48-hour rule when shopping for investment products. Much like when shopping for material things, explore how to grow your money before deciding. Give yourself enough time to look around for investment and do some research before diving into buying something you might later on regret.

5. Only invest in what you understand and only invest the money that has not been earmarked for any immediate needs.

Making investing a habit

1. If you want to invest more, think about it more. There’s a saying that what you focus on grows and what you think about expands. Regularly track your investments (and your net worth) in the Philippines quarterly and annually.

2. Simplify your financial life and ensure that you reach your goals this year by automating your saving and investing.

3. Commit to minimizing your spending so you can maximize your investing.

4. Take control of your social media and only fill your feed with updates that will inspire, motivate, and set you up for your goals. Delete or mute accounts that make you feel bad or trigger impulse spending.

5. Spend your time wisely. Read books or watch videos on investment in the Philippines. This is a technique that can teach you how to grow your money so you can be on top of your personal finance and achieve financial success.

Building your investment portfolio

1. An investment portfolio is simply the basket or collection of assets that an investor holds. It can include insurance, mutual funds, bonds, real estate, and other investment options. A diversified portfolio reduces your risk by investing in different financial instruments.

2. Exploring and investing in other financial instruments allows you to grow your money and receive passive income in more ways than one.

3. Benefit from the power of compounding interest by re-investing the benefits of your investments continuously over time. Apply your returns to existing or new investments to add to your portfolio.

4. Consider investing in Retail Treasury Bonds (RTB) if you want to add a low risk, fixed term investment to your portfolio. RTBs are issued by the Philippine Government with a minimum investment of P5,000.

5. Real estate is also a popular investment among Filipinos. Unlike mutual funds, RTBS, or stocks, real estate is a tangible asset that usually has good value appreciation. Owning property is a good addition to your portfolio but like investing in paper assets, you should first learn the basics of investment in the Philippines. This will help you avoid risks which include falling into mortgage debt.