Investing can seem complex, and you may have a lot of questions if you’re only starting out. To avoid information overload, it helps to start with a few key facts.
Here are some quick answers to 10 of the most common investing questions that people search for online in the Philippines.
1. Will investing make you rich?
Investing is not a get-rich-quick scheme, but has the potential to help you build wealth over time with proper execution and a consistent approach.
While a few investors may achieve substantial returns, others might see relatively modest gains or even experience losses. It’s important to know the risks, set realistic expectations, and adopt a long-term perspective.
Learn more about cultivating the right investor’s mindset in this article.
2. When can I start investing?
Before you begin investing, assess your situation and make sure you’re financially ready. It’s best to pay down any debt and save enough money for emergencies first so you can start off on the right foot.
Then, you should learn your risk profile and set clear financial goals to help you choose products that match your needs. After that, you can start looking for a suitable brokerage firm or investment service.
The right time to invest is, ironically, not a matter of time, but a matter of the investor’s readiness. See our list of things to prepare before you start investing in this article.
3. Which investing app should I use?
Look for user-friendly apps that are trustworthy, have good customer service, and offer the products you’re interested in.
Your chosen investment platform should also have reasonable fees and give you the help you need, whether through educational resources or personalized financial planning.
Read our guide on how to choose the right investment service for you.
4. Can investing be a full-time job?
Yes, there are people who trade and invest full time for a living. However, there are things to consider if you’re thinking of quitting your day job to earn money as full-time investor.
You’ll need to develop the necessary skills and have enough capital, while keeping in mind that your earnings aren’t guaranteed.
For most individuals, investing can be a part-time or passive opportunity that complements their other income streams.
Discover the differences between active and passive investing in this article.
5. Can you invest without a financial advisor?
Yes, there are people who begin investing and manage their portfolios without the help of an advisor. However, if you’re unsure about your choices or need personalized advice, it might be wise to consult an expert.
Learn more about do-it-yourself investing in this article.
6. What is the best investment for beginners?
Beginners may want to start with something that’s easy to understand, meets their budget, and matches their investor profile and goals.
Pooled funds like mutual funds or Unit Investment Trust Funds (UITFs) offer a relatively affordable way to start investing while allowing you to benefit from the help of professional fund managers.
Since each person has unique needs and preferences, remember that there’s no perfect first investment that works for everyone.
See more beginner-friendly investment options in this article.
7. Which investment gives the highest returns?
Investments with the potential for high returns include highly volatile assets like stocks. These come with elevated risks and are better suited for investors with an Aggressive risk profile.
It's crucial to manage risks while keeping your goals and situation in mind instead of simply choosing the investment that can possibly make you the most money. Remember that the higher the potential returns, the higher the risk.
Read our guide on how to strike a balance between investing risks and rewards.
8. Is an investment an asset or a liability?
An investment is considered an asset. Assets are resources that can potentially generate income or grow in value over time. Meanwhile, liabilities are debts or financial obligations that must be paid off.
9. Which investments provide dividends?
Certain publicly-listed companies share profits with stockholders via dividends. Just remember that such dividend payments might not be fixed. A company’s board of directors can decide to increase, decrease, or stop such payments.
Meanwhile, real estate investment trusts (REITs) are required by law to give most of their distributable income to shareholders via dividends.
There are also pooled funds that invest in dividend-paying stocks and other income-generating assets then distribute regular payouts to investors.
Read our articles to learn more about REITs and dividend-paying stocks.
10. Is there an investment without risk?
All investments come with some level of risk, but some are safer than others. That’s why it’s important to keep your risk tolerance in mind when making investing decisions.
Though it can be helpful to check facts at a glance, remember to dig deeper and do your own research so you can be confident with your investing decisions.
