PASSIVE INCOME IDEA – Here are some of the best investments for students and beginners for the year 2024.
Investment refers to the act of allocating money, time, or resources into something with the expectation of generating future income or profit. It involves the purchase of assets or financial products with the goal of increasing wealth over time.
Investing is often perceived as something reserved for seasoned professionals or wealthy individuals. It carries risks, including the risk of loss of capital. However, it also offers the potential for higher returns compared to keeping money in savings accounts or other low-risk investments.
Before investing, it’s essential to consider your financial goals, risk tolerance, and investment time horizon. It’s also advisable to broaden your investment portfolio to spread risk across different asset classes and sectors.
There are several types of investments such as stocks, bonds, mutual funds, real estate, exchange-traded fund, retirement accounts and many more.
However, for students, investing can be a valuable tool for building financial security and setting the stage for a successful future. While students may not have large sums of money to invest, there are several investment options tailored to their circumstances and goals.
Here are some of the best investments for students:
GCash and GInvest
Because it offers the lowest minimum amount to develop your money, GInvest is one of the greatest investment options for beginners in the Philippines. You can start investing with just P50. Its lack of commission and sales costs, in contrast to other funds available on the market, is an additional advantage of this characteristic.
Unit Investment Trust Funds, or UITFs
Because they are managed by professionals and financial specialists, UITFs are also advised for newbie investors. Regardless of how aggressive or conservative your risk tolerance is, you may depend on a UITF if you lack the time or leisure to research where to put your money.
High Dividend-Paying Funds
High dividend-paying funds consistently produce dividend income, they’re great options for first-time buyers in the Philippines. These funds make investments in low-price-to-earnings (P/E) and high-yielding dividend stocks. As a result, you can regularly make more money than if you owned individual stocks or bonds.
PERA (Personal Equity and Retirement Account)
PERA is a government-funded retirement program that enables participants to purchase bonds, equities, money market funds, and other financial products. It allows you to select the manager of your money, something that other traditional investment alternatives like as SSS and GSIS do not allow because their assets are administered by a single institution (SSS or GSIS).
Mutual Funds
Mutual funds pool money from multiple investors to invest in various assets such as stocks, bonds, and money market instruments. They offer diversification and are managed by professional fund managers. Students can start investing in mutual funds with relatively small amounts of money.
