Good Investments for Pinoys Abroad

It is a sad fact that Filipinos have limited knowledge when it comes to investments. Yes, probably the only investment we know of is business. We do not even consider saving in a bank as an investment. In entirety, we see banks as a place where we put our money and get it from time to time. We do not have a sophisticated definition of what truly is an investment.

In a place like the Philippines, Filipinos need to diversify their options for investments. Having a business is not your only choice. As a matter of fact, there are several investment schemes, good ones by the way, that can surely make your hard-earned money rolling into piles especially for Filipinos abroad or the Overseas Filipino Workers (OFWs). As an OFW it is your prerogative to save and invest your money because working in other countries is not permanent and the regular salary you receive may not last. To back yourself up and your family, you need to put your money into financial investments that will increase its value.

Take note: never entertain financial scams that are too good to be true. Secure your money to trusted and well-recognized companies which will take care of your money.

Treasury Bills (T-Bills)

Treasury bills are offered in your bank. This is a long-term investment and its minimum amount of investment is P100, 000.00. Its interest rate is higher than that of time deposits. This is investing your money in portfolios that are used for government purposes. This is a low-risk investment since it is backed by the Philippine government.

Unit Investment Trust Funds (UITF)

UITF is also offered in your local banks. This is an open-ended trust fund which investors can buy and sell their units after the minimum holding period. This is a high-risk investment where you should only invest money that you can afford to lose. If you invest a large amount of money, chances are you will also receive high returns. You must educate yourself beforehand on this type of investment so you will know when to stick around or when to sell your funds.

Mutual Funds

Mutual funds come in different types. Among these that are stock funds, bond funds, and balanced funds. Whichever fund you might want to take part in will depend on how aggressive you are as an investor. It means that if you are willing to stake higher investments, you can opt for stock funds. But if you are conservative, then choose bond funds. There is no guarantee that you will always get high returns from this investment since this will always depend on the country's economic condition. This is also a long-term investment.

Overseas Filipino Workers can also invest their money in stocks, real estate businesses, and insurance investments like educational plan, pension plan, and protection plan. As an investor, you must be aware that investments should be measured in terms of risks, returns, and liquidity. Only participate in investments with 2 to 4% returns above the annual inflation rate. Never go for those investments with 2% returns a month because it may be just a scam. In investments, the higher the return, the higher the risks.

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