There is no perfect investment but there is the right type of investment for each and every investor. The answer behind the question ‘where should you invest’ depends on many variables. In this blog, I am going to show you how you choose the right investment for you given your financial capacity as an investor. Remember that you don’t need to copy anyone’s strategy on how to invest. You don’t need to follow my steps and invest in stocks. You can choose your own investing path. You must make your own plan and tactics so you can enjoy the benefits of investing.
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If you can bring out a hundred thousand or a million, I suggest that you go for properties as there is bigger money when you invest in real property and use it for capitalization or leasing. When you put bigger amount in an investment, the bigger the earnings you can get. Given the amount of money you need to release, again, this investment is not for everybody. If you wish to invest in properties, you can still do it by saving your money until you accumulate enough to buy a real estate or you can invest in some other types first then use your earnings to buy the investment you want.
If you can’t buy properties yet, there are other options available on the table. You can invest in stocks for as low as P1,000 and do it for the long-term. You can do stock trading and do it for a living. You can invest in mutual funds and UITF while still being able to go to your full-time job. These types of investments don’t require you to bring out millions of pesos. Your savings of at least P1,000 is enough to open an investment account. When investing, avoid copying what your friends are doing, especially if you have different levels of financial capacity and risk tolerance. It’s better to learn on your own first!
Apart from being aware of what you can afford, you must know your risk tolerance too. Usually, investing in properties is a low-risk, high-return investment. The only risk you are going to face when you have a real estate is its vulnerability to damage because of natural disasters and fire damages. Investing in stocks is usually a high-risk investment because of the volatility of the market. Meanwhile, it will depend on the risk depend on the type of mutual fund you invest in. So before you start buying, take an assessment first to know your risk tolerance.