What are the investments applicable to Overseas Filipino Workers (OFW)? This is an important question for all of our fellow Filipinos out there who have been trying to figure out how to grow their money.
If you are an OFW, I’m sure you have heard of investment and what it can do to enhance the quality of your life. The possibility of retiring one day and going back home is very possible if you are just going to use your money wisely.
Using your money to replicate its amount is very possible in the world of investing and that is why I give you the list of viable investing opportunities for all OFW.
Stock Investing
What? you expect us to study how to invest in stocks with all of our busy schedule here? That would probably the first thing that will come out of your mind knowing that you too can invest in stocks even if you are from the far far away land.
If you are doubtful in your ability to invest in stocks, just read Bo Sanchez e-book “My Maid Invests in the Stock Market, and why You Should Too“.
If you want to find out how his maids made money with stock market, you can get his stock advice through Truly Rich Club which gives monthly updates on where to invest in stocks. And yup! I am a member of this club too.
Start by opening an account with online brokers, for this I recommend Citisec Online, this is probably the number one online stock brokerage house in the country and this is also my online broker.
If you are in the country, give some time attending the free seminars offered by Citisec online before opening your account, it is best to know something before committing anything.
Read everything on how to open an account and accomplish necessary forms then submit. That is how easy to open an account with them. When I opened an account, within 3 days my application was already approved.
Mutual Funds
This is probably the perfect investment for OFW, If you are still not ready to invest in stocks, try mutual funds. This is the best investment vehicle for people who does not have the time to check or study companies that you like to invest with.
Mutual funds has the advantage for first time investors since your fund will be handled by professional money managers that will diversify your funds.
The good thing about mutual funds is that it can perform as good as stocks especially funds that are purely invested in stocks or equity fund.
Read information and other details on mutual funds here.
UITF (Unit Investment Trust Fund)
Unit Investment Trust Funds (UITF) is another way that an OFW can invest their money. UITF is an investment trust offered by local banks in the Philippines, this is the fund that replaced Common Trust Fund (CTF) by the BSP.
UITF and Mutual Fund has a lot of similarity when it comes to how it is being value and managed. UITF uses Net Asset Value Per Unit or NAVPU while mutual fund uses Net Asset Value Per Share. The principle in computing the gains and losses are also similar with mutual funds. Both funds are also handled by professional money managers.
The main difference between these investment funds is that Mutual Funds are being regulated by the SEC while UITF is regulated by the BSP and hence Mutual Funds are offered by investment companies while UITF are offered by local banks
You can find such investments in any local banks in the Philippines that are offering this type of investment such as BDO or BPI.
Bonds
If you have been saving in the bank and have earned a considerable amount, it is advisable for you to invest in in bonds. With the meager interest you are getting from saving with the banks which are usually lower that 2% annually, try investing it in government bonds which usually gives 8% to 20%.
Bonds are relatively safe since most of these are offerings from the government or large corporations. This is their way of raising funds and borrowing money from the public. Bonds are fully guaranteed by the government and corporations that are offering which usually matures from 2 to 20 years.
You can purchase government and corporate bonds from their partner banks or in the case of the Philippine government you can purchase it through the Bureau of Treasury directly or go to the nearest banks and ask if they are offering government bonds.
Bonds are usually sold out in the first few weeks of its issuance and hence it is advisable that you look at the dates of when the Bureau of Treasury’s schedule of bond releases. Click here to see the dates.
