I’ve been teaching Financial Literacy to different types of people here in Saudi Arabia, and one thing I’ve realized is that many people want to start investing but don’t know how. It’s not that they don’t have the money—it’s just that they feel overwhelmed by all the options, jargon, and risks involved.
So, where should beginners start? My suggestion: Mutual Funds.
Why Mutual Funds?
Mutual funds are a great starting point for new investors because they are:
✅ Managed by professionals – Unlike stocks, where you have to analyze companies, trends, and financial statements, mutual funds are handled by fund managers who do all the work for you.
✅ Diversified – Your money is not invested in just one company but spread across different stocks, bonds, or assets. This lowers the risk of losing everything in case one investment underperforms.
✅ Affordable – Many mutual funds in the Philippines allow you to start with as little as ₱1,000. So, you don’t need millions to begin your investment journey.
✅ Passive Investment – You don’t have to monitor your investments daily. Just put in your money, let it grow, and review your portfolio every few months.
How to Start Investing in Mutual Funds?
- Choose a Reputable Mutual Fund Provider – In the Philippines, popular ones include BPI Investment, Sun Life, PhilEquity, and ATRAM.
- Decide on Your Investment Goal – Are you saving for retirement? A house? A future business? Your goal will determine which type of mutual fund suits you.
- Pick a Fund Type –
- Equity Funds (for high risk, high reward)
- Bond Funds (for lower risk, steady income)
- Balanced Funds (a mix of both)
- Start Small and Invest Regularly – You can start with a small amount and do Peso Cost Averaging—investing regularly regardless of market conditions.
Final Thoughts
The biggest mistake is not starting at all. Investing in mutual funds is a simple and low-risk way to grow your money without needing extensive financial knowledge. The key is consistency—keep investing, be patient, and let compound interest do its magic!
Are you ready to take your first step toward financial freedom? 🚀