Investing 101: Investment Types and How They Work For You

There was a time when Filipinos viewed investing as something that was only for the wealthy. Buying stocks, trading, or buying and selling were activities thought of as something only the foreign nationals living here did. In recent times, however, more Filipinos have become more open to investing. PawnHero looks at different kinds of investments and how you can maximize what you get from them.

Filipinos took great pride in these investments because now they can call themselves entrepreneurs and business owners instead of just being plain workers. Many years after, small investments became the name of the game with the arrival of multi-level marketing companies.


Networking and Investing

Popularly known as “networking,” this type of investment enticed young people, as well as those who were easily lured by the promise of easy cash and significant returns. Alas, only a handful do succeed, and many feel that they have just thrown away the money they invested. Truth be told, the world of investment does not operate in such a simplistic way. If you really want to learn how to invest, take a look at these investment types and see which one is best suited for you. Let’s break them down into three main categories namely ownership type, lending, and cash equivalents.


Ownership investments are things that you buy as an asset, which are kept with an expectation that they will increase in value. This is the broadest investment category because it includes investing in different things for profit or resale purposes.

    • Stocks – Filipinos are becoming more interested in trading in the stock market. Ordinary folks are now buying stocks from large companies, and trading and selling them for profit. You don’t need a big investment to start here, as even a few thousand pesos will do. This is the reason why even college students are able to try investing in stocks. You also don’t have to be very knowledgeable about it since there are financial advisers whom you can turn to for advice.


  • Real Estate – This is for people with large sums of money to spend. Buying land, houses and lots, or condo units is a lucrative trade, but you would need a large capital for it. Also, you must be very patient because selling pieces of property takes longer than say, jewelry or appliances.



  • Precious metals, Art, Collectibles – You may not realize it, but the “buy and sell” business falls under this category too. Some people buy jewelry and sell them at a markup, well this is like that but on a couple of levels higher. Gold, silver, diamonds and precious art are bought and sold to interest parties. Investment is also big here, but very rewarding.



  • Business – Opening a company selling a product or service is always a good way to invest.

Lending Investments

Lending Investments is also a good way to earn returns, and you won’t have to wait that long to get your money back. This is a low-risk and low-reward investment that includes bonds, certificates of deposits, and other types of loans. Here, the investment is purely cash, and there are no items or physical products that are bought or sold. Because of the lack of something physical that needs to be maintained, the expenses with this type of investment are negligible. Just be careful of who you lend to and make sure that you protect yourself.

Cash Equivalents

Cash equivalent investments are also low risk and little return. These include treasury bills, bank notes, corporate commercial papers, and more money market instruments. One important thing to note is that this is actually a relatively secure type of investment especially if you go for those backed by the government. Not a lot of people go into this kind of investment here in the Philippines though.

Filipinos would rather go with ownership and lending investments because they can immediately see, or at least project, how much they will be making. While the little return might put you off, it’s certainly higher than what most banks offer. This makes for a great alternative to a purely passive savings account.

As with any investment, there are highs and lows. In case you need extra cash to top up your capital for your online store or food business, don’t hesitate to check out PawnHero, the first online pawnshop in the Philippines. They accept appliances, gadgets, and other items allowing you to meet your short-term cash necessities right at the comfort of your home!

Gem Muzones

Gem is a contributing writer for PawnHero. She was a news writer who walked alongside protesters in the streets of Manila and a magazine editor who got free passes to product launches and the hippest events. She’s a big Game of Thrones fangirl, 1/2 of a budget travel blogging duo for Travels with a Hobo, and suffers from chronic hair dissatisfaction (she changes her hair color every month).

*This is a guest post.

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