Before Jumping Into Investment

After a series of articles encouraging every Filipino to invest. Are you ready to venture the exciting world of investment?

Here are some tips before jumping into Investment.

1. Make sure to set aside at least 6 months of emergency fund. This will protect your investment in case you need big amount money for an emergency.
2. Do your homework. Don’t fall to an investment scam. Beware of the investment companies that offers double your money scheme. For a newbie, I suggest to start 1^st on a mutual fund or UITF.
3. Match your risk appetite with your investment choice. If you have a low appetite for risk, I suggest you go for a conservative investment like bonds (fixed income) or money market. However, if you want a higher return and you can withstand the high volatility of equity market, you can invest directly on the stock market.
4. Know your Investment Horizon. If you have an investment horizon of more than 5 years, I think it is wise to go for a high yield and high risk investment instrument. It is proven that a longer investment time will ride out stock price volatility.

Goodluck and Happy Investing…………

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