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Start Investing in the “Stock Market” with Php500

When the great record-breaking performance of Philippine stock market hit the local news, several friends who were previously snubbing my invitations to invest have started to “re-inquire” from me how to be part of the growing number of happy stock market investors.

As usual, when I mention to them that they have to start with at least Php5,000 to open a stock investment portfolio the responses would be, “Wala pa kong pera.” (I still don’t have the money). Or, “Hindi ko alam kung pano gawin yan.” (I don’t know how to do it.)

Well, fret no more superfriends. Instead of saving up Php5,000 to open your first stock investment portfolio, you can at least set aside Php500 in your next payday to start investing in the stock market. Even if you don’t know how to.

How To Invest in the Stock Market With Just Php500?

If you have read my previous post about janitor Kiko who started investing in the stock market, you’ll understand that I am actually talking about investing in BDO’s UITF (Equity Fund) via their Easy Investment Program or EIP.

It’s actually similar to the concept (and a strategy namesake) of COL Financial’s EIP which follows the peso cost averaging method.

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Invest in the Stock Market Indirectly with just Php500

BDO defines UITF‘s or unit investment trust funds as:

“ready-made investments that allow the pooling of funds from different investors with similar investment objectives.  These funds are managed by professional fund managers and are invested in various financial instruments such as money market securities, bonds and equities, which are normally available to bigger investors only.”

Through BDO’s UITF product “Equity Fund”, one can invest indirectly in the stock market. So even if you don’t have any knowledge or background about the stock market, BDO can invest for you and manage your stock market investment portfolio.

However, a regular investment in Equity Fund requires a minimum investment of Php10,000. But with BDO’s Easy Investment Program or EIP, an ordinary earning employee can invest at least Php500 from his salary every payday (twice a month).

How To Start Investing in BDO’s EIP

If you want to invest in BDO’s UITF’s through the Easy Investment Program, here are the following things that you need to accomplish first.

1. Open a BDO savings account. If you are an employee in the Philippines and your employer is using BDO as provider of payroll services, you can request from your HR Department to help you enroll your payroll account under EIP.

On the other hand, you may directly open your own savings account at BDO and immediately enroll it for the EIP as well.

For OFW’s, you can open a BDO Kabayan Savings account on your next vacation. Similarly, you can ask your family member to open their own Kabayan Savings account and simply enroll it via EIP.

2. Select BDO Equity Fund. When enrolling your savings account to link it with your EIP, select BDO Equity Fund in the enrollment form as this type of UITF is invested in various blue chip companies in the Philippine stock market.

3. Select the Frequency and Schedule of Your Contributions. If you find it hard to invest your Php1,000 every month, one solution is to divide it into two from your twice a month payday schedule. You can select a twice a month schedules of 5th & 20th, 10th & 25th, or 15th & 30th to automatically deduct from your salary Php500 each date.

Doing this cost-averaging strategy can help you achieve your long-term financial independence objectives.

Read more about BDO’s Easy Investment Program as you continue to learn about investing in various financial instruments and the risks that are present in each investing decision that you will make.

If you know about other affordable investment programs that can help our fellow Filipinos start their journey towards financial freedom, please indicate them in the comment section below.

Continue to receive more information about affordable investment programs by subscribing to BurnGutierrez.Com for FREE.

Join the OFW UsapangPiso Facebook Group and Forum to learn how to plan your finances the right way and how to grow your money in various financial instruments and investment vehicles such as stocks, mutual funds, UITF’s, bonds, money market, real estate, and others.

P.S. 1. Bro. Bo Sanchez has appointed me as a coach for our young and new investors at the TrulyRichClub social site. It’s a fun, learning family with the purpose of “helping good people become rich”. I’m inviting you to join the TrulyRichClub too and email me at burngutierrezblog@yahoo.com.ph if you have any questions. Click here to joi

P.S. 2. Learn How To Earn Through Larry Gamboa’s Real Estate System. Real Estate Mentor Larry Gamboa is giving a Seminar on February 9, 2013 on how he buys foreclosed properties or properties from “motivated sellers” and turn them around into rental properties or quick sales. If you’re interested to learn his system, click here now!

P.S. 3. Visit the Philippine Red Cross site to donate whatever amount you can for the victims of typhoons “Pablo” and “Quinta”, “Maring”, “Yolanda” in the Philippines.

 

20 thoughts on “Start Investing in the “Stock Market” with Php500”

  1. Pingback: BurnGutierrez.Com
    1. Hi Vernie, you can not directly invest in Equity/Stock Fund UITF if you are abroad. But you can ask your relatives in the Philippines to open for you then just redeem it in your next vacation. Then open your own UITF account by then.

      But then you can also invest directly in stocks by opening a trading account with a Philippine stockbroker like COL Financial. Kindly see my related blog post for your information: http://burngutierrez.com/how-can-ofws-invest-in-stocks-via-col-financial/

  2. Im interested in investing in BDO but I’m a little bit confused which one I will choose between the mutual fund or the UITF, and what is the best investment. Please advice.
    Thanks in advance

    1. The best investment is education. Study more about these financial instruments first. Know what are the other important things that you need to achieve first before investing. Research. Attend seminars offered by banks and financial institutions. Huwag magmadali kung hindi sigurado sa paglalagyan ng pera.

  3. Pingback: BurnGutierrez.Com
  4. 1. Can i skip saving 500 pesos for a month or so.
    2. What is the average percentage that i can earn from UITF’s
    3. is it taxable.

  5. Good evening po. Pwede po bang mag-invest sa stock market ang below 18? I mean, I am 15 years old, a student, and I want to try investing as early as today. I need help. Thanks a lot.

      1. Hi Lina, pwede kang mag-invest kahit 5,000 lang muna. Pero assess mo din muna ang finances mo. May insurance ka na ba? Importante na meron ka nito lalo na kung ikaw ang breadwinner ng pamilya mo.

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