You’re an adult now. But we know it’s not the easiest thing to be.
Adulting forces you to deal with things you weren't taught in school. From figuring out your grocery list to living from one paycheck to the next — you’re supposed to learn things as you go along.
Chances are, one of your adulting woes is learning how to handle money well. This doesn’t just mean saving your earnings, but growing it. Investing gives you the opportunity to live comfortably and pursue other dreams in the future.
You may believe it’s not an urgent matter and that it’s way too complicated — plus, you don’t have the money to spare.
If the world of investing overwhelms you as much as 280-word tweets do, mutual funds are just the type of investment for you.
Most millennials — and let’s face it, most adults — hardly understand investments, but don’t worry. With mutual funds, you won’t have to constantly monitor the markets and take note of trends.
How does it work?
Mutual funds pool your money with those from other investors. A professional fund manager then uses these combined funds to purchase bonds or stocks from various companies.
This diversification or combination of assets, minimizes the risk of losing money — because you won’t be investing it in just one thing.
It’s just the thing for millennials, who have neither the time nor the expertise to manage their own investment portfolios. ALFM Mutual Funds by BPI Investment Management Inc. offers mutual funds, which are professionally managed, to balance investment risks and returns.
Finding the money to invest can be difficult after all the Bills, Bills, Bills, especially if you’ve just started working.
But you don’t have to shell out a lot of cash to invest in mutual funds.
You can start investing for only P5,000 with ALFM Mutual Funds. There’s also a hassle-free auto-invest feature which enables you to contribute to your investments either monthly or quarterly for just P1,000
This means you won’t have to worry about monitoring and timing the market. It’s that simple.
You can maximize the full potential of your investment since ALFM doesn’t charge upfront fees and hidden premiums. All the money goes into buying shares of mutual funds.
You deserve to enjoy your income, whether you choose to spend it on a Netflix subscription, a music festival, or a trip to La Union with your barkada.
Learn to indulge wisely, though. Here’s where a little extra cash from mutual funds comes in handy.
For each type of mutual fund, there are corresponding lengths of time best to keep it invested. These are called investment horizons:
1. Money Market funds: Short-term
2. Bond funds: Medium to long-term
3. Equity funds: Long-term
You can invest in one or split your investments between all three. Create a portfolio which contains money market funds, bond funds, and equity funds.
This way, if you need it, you can cash in the results of your short-term investments, while leaving the rest to grow long-term.
As a beginner investor, it’s important that you know where your money is going.
View the performance of your mutual funds through BPI Online Banking or BPI Mobile App. You’ll also receive regular statements of accounts.
Start investing as soon as you can, because the earlier you do, the higher potential income you stand to earn.
Adulting can be a struggle, but investing doesn’t have to be. Shake off the mindset that it’s difficult and costly.
As you begin navigating a bigger world, you need to start investing for it. It’s good to enjoy your hard-earned money now, but don’t forget to look out for your future self, too. — Rappler.com
The 167-year-old Bank of the Philippine Islands is the first bank in the the Philippines and Southeast Asia. We are licensed as a universal bank by the Bangko Sentral ng Pilipinas to provide a diverse range of financial services: deposit taking and cash management, payments, lending and leasing, asset management, bancassurance, investment banking, securities brokerage, and foreign exchange and capital markets.