Philosophy

933 Words May 9th, 2013 4 Pages
How to find the right investment for you

Investment has become a hot topic in the Philippines lately due to the plethora of positive economic news: the recent Fitch credit upgrade, the stock market hitting high after high, and the real estate boom. It seems to make perfect sense to start putting your money to work, but how to choose the right investment? With so many financial instruments out there, it's quite difficult to decide. So before sinking your hard-earned savings into any investment, take a few moments to consider these questions.

What are you investing for?

In the rush to make money, it's easy to overlook this most basic of steps: thinking up a clear financial goal. Putting your money in any instrument without deciding
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Clients pool their money and the fund managers invest them in a basket of bonds, stocks, and other cash instruments. You can have a choice between different mixtures of these funds depending on your risk appetite.

Foreign Exchange. This means investing in currencies, making a profit with the rise and fall of that currency's value. Forex markets are usually more volatile than the stock market and carry considerable risk. One should take time to study forex trading before plunging into this market.

Real Estate means buying and holding property (e.g. Land, condominiums, apartments, houses, lots) either for lease or to sell at a profit when the value goes up. A popular investment vehicle, real estate can be highly profitable but usually requires a large amount of capital to start with.

Businesses. You can own a business, buy into a franchise, or be a "silent partner" in either. Your return depends entirely on how profitable the business is, so you'd best be aware of how well the business is being run.

There are many other things to invest in: derivatives, art, jewelry, precious metals, and so on. Ultimately, only you can decide what the best investment is for you. So pick a goal, do your due diligence, diversify, and hopefully—profit!

What's your preferred investment? Sound off

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