Overseas Filipino Workers, or often referred to as OFWs, are good at saving money. They do it for their families, as well as for their dream to become entrepreneurs and start their own business. Most of them spend years, even decades, away from their families to save enough to reach their goals.
A stock market is a platform where people can issue and trade equities or stocks from registered companies. In the Philippine Stock Exchange (PSE), there are several known companies that people can keep an eye on such as BDO, SM, PLDT, Globe, BPI, and Jollibee Food Corporation to name a few.
OFWs can invest in stocks. Once they buy shares of any of these companies, they will be considered as part-owners of the company.
1. Stock Market Investment has More Potential Growth Than a Savings Account
Investing money in the stock market is a better option than keeping your money in a bank. The return rate of your Philippine savings account per annum would only be 0.25 percent, and this will still be affected by the influence of the economy’s inflation rate.
You are more likely to ‘earn’ more if you invest your money in stocks. In this regard, it must be both your long-term goal and strategy.
2. Pay Attention to the Power of Compounding Interest
In a simpler term, compounding interest is merely interest on interest. If you are an OFW pondering on investing in the stock market, you could get a better return on investment (ROI).
3. You can Invest in the Philippine Stock Market Even if You are Based Overseas
It does not matter if you are working abroad; you can still invest in the stock market through online stockbrokers that are accredited by the PSE.
4. You Only Need P5,000 to Start
Investing at least P5,000 every month entitles you to an average interest rate of 12 percent. Given that, you will have a projected return of P5.05 million in two decades. Compare how much interest your savings will earn if you leave your money in the bank.
5. It is a Risk Worth Taking
Every investment is a risk, and so is the stock market. Although investing in stocks pertains to higher risks, it has higher returns as well. If you are thinking about the better option for your money on-hand for the long run, the stock market could be the best place for you to invest.
Do you need guidance on how to invest in the Philippine stock market? Contact us today and we’ll help you with our investment consultancy services.