Are you a newbie with investments? In this post, I’m going to share about my first investment and tips for beginners investing in the stock market and other financial investments involving stocks like mutual funds and trust funds in equities.
To be honest, when I first discovered about how to be multi-millionaire by investing stocks, I was like “OMG, I wish I knew this sooner.”
It made me so excited although the stock market and all of these investment stuff are too overwhelming. So when I heard about earning millions of pesos by investing in the stock market and mutual funds, I was really stoked to get to know about them better.
I knew there were reasons why they always mentioned Trust Funds by the rich and the elite characters from “Gossip Girl.” I knew there were reasons why the heirs and heiress from that Korean series, “The Heirs” always checked out their stock portfolios on their big mobile phones. I knew I had to know more and I had to ask real people who are involved with same investments.
Everything started when I discovered about SDA (Special Deposit Accounts) from someone who works at the head office of a big bank in Makati. SDA were usually for millionaires or high networth individuals. If you have 1 million for example, you could place it an SDA instead of time deposit or savings account, you could get around 2.5% up to 3.5% gains in just a month.
What more if you let your money stay there for many months, you can, for sure be getting more money while you sleep. That is actually what the very wealthy people have been doing. Some place their 100 million on SDA.
At that time, there was still SDA but the BSP (Bangko Sentral ng Pilipinas) killed them a bit recently. Although not entirely, there are still SDA to some funds like money market funds. Since SDA were not hundred-percent available, investors and bank clients rely on UITF instead.
After studying and learning about stocks, mutual funds and trust funds, I’ve finally come to a decision to open UITF since the biggest thing I’ve learned was TIME IS MONEY. I knew I could let my money roll and grow higher by investing in equity funds since they involve more with stocks.
While I still study and and while I get to know more about investing directly in the stock market, at least I have already something that is already earning effortlessly.
After few months, I opened an online trading account and started to buy stocks directly in the stock market.
At this point, there is no stop to invest another more. I also opened a Mutual Fund and as usual I will share here my experience and review.
Investing in the Stock Market Tips for Beginners:
- Invest basic knowledge first before you open your investments. No worries, you can read our stocks, mutual funds and UITF posts. They will guide you easily.
- Prepare the requirements you need before you invest
- Start with either Mutual Funds in Equity or UITF in Equity because these investments don’t require expertise or skills in monitoring the market. You already have experts who manage your funds for you. All you need to do is open an account and live like a queen. You earn money while you sleep.
- Complete this pack and open an account one at a time: Mutual Fund + UITF + Stocks
- Invest directly in the stock market and become a multi-millionaire.
It is very important to open different investments and not focus on one alone because investments have risks. Diversification is always best because we should never put all our eggs in one basket.
UITF Investments I recommend:
Because of their impressive growth and fund performance, I recommend the following UITFs:
Mutual Funds I recommend:
These investments are one of the best mutual funds in the country.
- Phil Equity Fund
- Sun Life Philippine Equity Fund
- Philam Strategic Growth Fund
Stocks that I recommend:
The following are the top 6 stocks I invest in the stock market (as of now). You can also invest with these companies since they are giant companies and will be here for a very long time.
- Jollibee Foods Corp. (JFC)
- SM Investments (SM)
- Banco de Oro (BDO)
- Metrobank (MBT)
- Ayala Land Inc. (ALI)
- SM Prime Holdings (SMPH)
The performances of the funds and stocks that I mentioned have been impressive for the past months and years. Remember what I told you, invest one at a time while you add more investments. Work while you enjoy your passions and be happy.
Disclaimer: Investments have risks that is why you need to learn about them before you invest. Choosing the right company and strategies will help you gain money so much but there are no guarantees you will gain all the time.
56 thoughts on “My First Investment: Tips for Beginners Investing in the Stock Market”
Thank you for this content. This will be helpful in the near future. Also, the content is very well detailed.
Hello, Is it ok if I open account on Col for stocks first then uitfs/ mutual fund later? Thanks.
Yes, COL Financial has mutual funds, too
hi ms. fhel!
what is your current review for ALFM?
thanks in advance!
Will make a review about it soon sa Dailypik 🙂
Hi joe is here,i ask a few questions,how can i invest my money here in qatar i heard about the UITF,
i want to invest my money in stock market,there’s a banko de oro here in qatar?
Hello po tanong ko lng po pd po kaya ako mg invest sa philequity fund pro kailngan ko po after 5 yrs from now…salmt po.
hi fehl,thnx for your blog i want to invest but have no idea how to start i live in hongkong and work here. and i gonna plan to visit BDO by net day im truly inspired and thankful for your insights to help people like me who want to invest but no knowledge how to do it i want a long term investment to start with like 50 k my question is let i invest it for 5 years do you think it will row much? thnx and sorry for my ignorance
Hi Eva. Thank you for visiting. Depending on what type of fund you invested your 50K, the earning potential lies on what of fund you put it into and the financial market performance. Circa 2012 and 2013, Equity funds were performing great. 50K that time could earn 60% and or above. But the market and the economy shifted to not so impressive performance after 2013. No one can predict the market but investing for long term is the key
Hello. When I am all paid up with my debts next year I plan to invest 25k a month on peso equity mutual fund for 1 year. Then make adjustments. I also plan to save 1ok a month at the same time then start an online selling business with my savings.. Would I be able to borrow against my mutual fund lets say in 6 years. I plan to buy a house then. Thank you
Hi Ms Fehl
I chanced upon your blog when I googled something about how to get rich.
That’s when I found out that one way is through having passive income through long term investments, such as UITF equity funds offered in banks.
As a newbie, I tried the BDO equity fund last July 2014 and early 2015, BPI and Security Bank Equity fund. I started with the minimum required investment of 10,000 in each UITF. My BDO investment was steadily increasing until it went done sometime in March 2015. As for my BPI and Security bank UITF’s, both have not gained profits since I invested last year but I’m patient and hopeful that this year it will recover and gain profits.
In UITF equity fund, do the fund managers make changes in the composition of the stock portfolio to maximize profits? Do the fund managers also follow ‘Buy below price’ or target price when to sell?
Hope to hear from u soon. Thanks!
Have you heard of ATRAM KimENG? would you recommend this also?
Yup, one of the mutual funds
Hi Ms. Fehl!
After learning and reading your blog I prayed to God at once to bless you more for being so kind in sharing your knowledge to us.
Thank you, Ina. God bless us all 🙂
I’m a college student studying Architecture and I am 22 years old. I can’t figure out which should I pick to start investing whether it is the Equity Funds, Mutual Funds or Stocks. If you could give me some advice where to start of first as a beginner, but what I have in mind is starting with mutual funds since I still have a lot to learn about stocks and I am busy with school.
Hi, I already shared my beginners tips above po, start with either MF or UITF. I also explained why… 🙂
Hi po Ms.Fehl,
I’m a newbie and just found this website. Its really informative and very interesting po. May tanong lng po ako, kpag mg-iinvest po ako s uitfs, at hndi po nag-gain. Ung naging capital ko po ba mkukuha ko p rin po?or considered n po un as lost? Nalilito lng po kc ako. pacnsya n po s tanong ko. Hoping for your reply.thank u po.
Hi, UITF are investments and just like other investments, there are risks involved that they may gain or lose profit. Regarding your question, di mo na makukuha ang capital mo if you redeem on that date na mababa ang NAVPU. You can read our other articles here about UITF to learn more, I’m sure di na po kayo malilito 🙂
hi ms fhel, i have been reading your blog since last week..and i want to start investing..question po..if I am going to open an acct thru COL which is 5k and planning to add let’s say 1k monthly (un lang po kasi kaya ng budget) pwede po ba un?
Goodmorning. Is there a way to know if navpu ishigh or low like col buy below price
Mutual Funds are diversified funds so setting up a BBP may not work for it
Hi Fehl, regarding COL – ITF, at PHp 5K initial , and 1K every month. Is it possible to enroll our nephew for ITF and invest it in mutual fund? He is only 16 months old. We are planning to use the money for his College education.
Yes, you can also open ITF account for mutual funds
Hi ms. Fhel!! You’re blog is very helpful!! My husband and I would like to join COL finacial. Actuall we’re going to attend one of their seminars this August. I just want to know if its right to use my 5,000 (starter amount) on 2 companies then we’ll add 2,500 each on those 2 companies monthly. Para long term investment on them.. Ok lng po ba un? Hope you could relpy. God bless!!!
Hi. Thank you for visiting. Yes, if you can buy stocks with that budget why not 🙂 Remember, be careful in choosing the companies you will invest with. God bless!
opo ms fehl i will do that from your wisdom word’s po jejeh sge po thanks sa mga advice mo un ang susundin ko na mga method para malaki ung fund ko at utif fund ko sa market ko po..
Hi Ms. Fhel,
Your blog was so very informative and it helps a lot other newbie investors like me. I would like to ask some advice lang po sana if magandang strategy po ba ang mag-invest muna sa mutual fund while pinag-aaralan ko kung panu mag-invest sa stocks. I was planning kasi na if mag-invest ako sa stocks gaya po ng COL gusto ko po sana monthly kaso hindi ko pa po kaya yung ganun amount per month. Anu po ba ang ma-aadvice nyo?
Hi Ms. Fehl,
Thank you for a very informative site. I learned a lot about stock. I have a question, Im going to open a COL starter acct. Do you think it is good to put my money on only 1 investment as starter? thank you.
Yes it’s ok if you do it monthly as a starter, invest slowly and regularly
I’m a newbie also and got interested in investing stocks that’s why I opened an account with COL. I really don’t have any background in trading or is it safe to say I don’t know any thing about stocks. Thankfully I found your page and beginning to learn (little by little). Though I still have to learn more. I have a question. How do you tell that you are losing or gaining on what you have invested? I get upset every time a see my portfolio mostly in RED. What does this exactly means? Does it mean I’m losing my shares?
Hi Jackie. If the price of the stocks today is bigger than the price when you bought them, then you would likely have gains. Yes, when you see red amount in your Portfolio, that can mean loss. If you only just begun, that is normal coz your stocks need more time to appreciate in value. To learn more this page will help you: http://dailypik.com/stock-market-dilemma-what-to-do-when-you-see-red-amounts/
I wanna ask,
What will happen to my share of stock if the company I’m investing becomes delisted in stock market?
You can’t trade them anymore in the PSE. You can sell them outside PSE and you’ll have to declared aCpital Gains Tax then coz you’re dealing with stocks not listed on PSE
Kakabasa ko sa articles mo nagkaroon ako ng interest to invest sa stock market. I need to read more about it kasi as in wala akong idea about stock market. Pero tanong ko lang, for example, bibili ako worth 5,000 then the company lose, what will happen to my 5,000? Mawawala ba?
Second question: Kung ang company ay mag gain, should I put more money to it para palaki ng palaki ang interest. Pls give me more ideas, thanks a lot
If the stock went lower, you would likely lose some but not all of it coz you buy shares of stocks. Please read our completely Stock Market guide to learn more. God bless!
Hi Ms. Fehl super nagkaron ako ng interest mag invest since nabasa ko ung blogs mo. Thank you for sharing your knowledge! I am planning to invest pero konti plang ang knowledge ko about MF. Please give me an advice kung san ako pwede mag invest ng hindi ganun ka laking halaga pero pwedeng tumubo. Thnks
Hi Lyn. Thank you for visiting. 🙂 You can invest through BDO UITF EIP (Easy Investment Plan) or PNB AIP (auto Invetsment Plan). You’ll be able to place and add funds to your investments monthly if you have chosen those investments. It is so convenient and doesn’t need big capital. Please read my review about BDO EIP and PNB AIP so you can learn more.
You can also invest to Mutual Funds that allows monthly placements too. Sun Life and Philam have those Mutual Fund products.
Hi Ms. Fehl, thank you for sharing your knowledge about investments. I am working for more than 3 years already but sad to say, I still do not have any savings or investments. Fortunately, I was able to read your blog about UITFs. I am planning to invest in a VUL but I was advised that it is much better to invest in UITFs. We will be receiving our 13th month pay and Christmas bonus on December 1 or maybe by the end of November. May I ask if December is the best time to invest in a BDO Peso Bond Fund? As per reading on BDO’s website, the minimum amount to invest is P10,000. I would like to allot this amount for my investments as soon as I received our bonus. But I am not sure if the NAVPUs are too high during the Christmas season. When is the best time to invest in a UITF? I am looking forward for your advice. Thank you very much!
Bond Funds are not too volatile so it’s safe to invest now than tomorrow. 🙂 They keep on climbing. I’d say invest now than on Christmas or than sooner. I recommend you invest under EIP and add up funds monthly than investing 10K at once. Investing monthly will give you more profit if your goal is to do that for 5 years or so
Hi Ms. Fehl! Yung SM investments corp po ba eh yung SM:PM sa market? and kung okay rin po ba mag invest sa megaworld for properties instead of SM prime holdings? Affiliated po ba sila? Thank you so much po! Sobrang helpful po ng blog ninyo, I always look forward sa inbox ko kung may new posts po and comments! 🙂
Hi :)Yes, MEG is ok too. I just prefer SMPH more because it’s more on rental income and leases of SM malls and properties while MEG is on real estate projects, lavish ones 🙂 MEG and SMPH is a nice combo
Is there a website or database which we can go to check fund managers/bank and stocks performance? and how well they’re going to perform so we can know that out money will be in less risk before we invest with the company
Yes, at the company’s own website. They have monthly, quarterly and yearly Fund Fact Sheets. Most of Mutual Funds and UITFs are performing well naman. Equity Funds are the riskiest although I never seen loss from mine, all gains. I think, we shouldn’t worry as long as we invest for long term, our investments will win 🙂 I’m connected with experts on these funds and they always tell Equity Funds mostly reward you so much when you put them in 5 years or longer.
Hello poh Maam Fel! 🙂 Magtatanong lng poh sana ako. If gagamit poh ako ng peso cost averaging? paano ko poh makukuha iyong percentage na return na sinasabi sa method na ito? Is it by dividends na dineclzred or in future year kung ibebenta ko na ang stocks ko? Salamat poh. Pasensya na poh sa tanong ko. Beginner pa lng poh kase. Mag i.invest pa lng poh. Thank you! 🙂
Hi Christine. Please read our post about “What is Peso-Cost-Averaging and how does it Work” we have tackled PCA method there 🙂
I’ve been doing research in UITF and I learn a lot about your posts. I’m still novice and I’m planning to have my first investment in UITF very soon. I am OFW, I’m thinking about investing in UITF either in Qatar or in Philippines?? Both are doing great in economic growth (I believe), so what do you think??
If you will stay in Qatar for many years, it’s ok if you invest there. But it’s still best if you invest in the Philippines since you will be here for life. Investing for long term is the key.
Newbie ako sa stocks and i found your articles very helpful. I am planning to buy my first stock with in this month. Would you recommend ba ang FPH, CEB and MPI for long term investment. Sana mas marami pang pinoy ang maencourage na mag invest sa stock market. God bless and more power to you,
Hi Gel. Congrats and welcome to the rewarding world of stock market 🙂 Join our Stock Picks community here: https://www.facebook.com/pages/Stock-Daily-Picks to know what my picks for now and some other members’picks too 🙂
Hi Ms Fehl,
I hope everything is well for you. Thank you for sharing your knowledge in all aspects of investments and it goes well to me and made me interested to comment.
I’ve been putting my money into a savings account & time dep. at MBT for years since my first year abroad.Thought it is the best investment, not until a group of young investors opened up and introduced me MMF, Bond& Balance Fund & MF. Now, since I am a newbie on Investment Fund, I just want to start putting my money into one of the MBT’s Investment fund program below:
Metro Equity Fund
The Fund is a peso-denominated equity fund suited for clients who have an investment horizon of at least five years and can tolerate a high degree of risk for superior capital growth.
The Fund aims to achieve for its participants maximum growth from a portfolio of diversified, blue-chip and fundamentally sound equities listed at the Philippine Stock Exchange (PSE).
Fund Classification – Equity Fund
Min. Initial Participation – Php 25,000
Min. Additional Participation – Php 25,000
Maintaining Balance – Php 25,000
Min. Investment Horizon – 5 Years
Holding Period – 90 days
Early Redemption Charge – 50% of income on redeemed amount
Trust Fee* – 2.0% p.a. based on NAV of the Fund
Custodian Fee – 0.015% p.a.
Applicable Tax* – 20% Final Tax on FI Investments
Dealing Day – Daily up to 12:00NN
Redemption Settlement Date – 3 Banking Days after Date of Redemption
Benchmark – 90% Philippine Stock Exchange index (PSEi) and 10% Philippine 30-day Special Savings Rate Gen. Average (net)
Fund Manager – Metrobank – Trust Banking Group
Custodian – Standard Chartered Bank
Valuation – Marked-to-Market
My question is, if you are to use your own calculator is this a good start for me or not?(Please give the raw calculations after taking fees and taxes basing their pressentation) As I’ve read to your previous post that We should invest one at a time,If this is a good investment then I will proceed to invest in MF(Phil Equity respectively) I already attended 2 free series of Overviews by IMG Marketing Directors. Really, you guys are hulog ng langit na nagpapa alala na hindi pa huli ang lahat at kung papaano maging may pera ngayon at kapag nag retire na sa work.
Thank you so much…More power and God Bless you…
Metrobank Equity Fund is one of the best investments offered thru their banks. 97% of it are invested on stocks and 3% on deposits accounts so you will be maximizing your profit over a period of time if you choose to invest for 5 years or so because this fund participates more on big companies like PLDT, Ayala Land, BDO, SM, URC, BPI, JGS stocks and the like. See their latest fund sheet to know more about the growth of the fund you wish to place. Metrobank also has Mutual Funds via FAMI (First-Metro Asset Management Inc.) You can also open Equity Mutual Fund in FAMI
Hi Ms. Fehl! Thank you for your reply on my prior question on another topic you have. I have another concern, i already talked to a Sunlife representative and she convinced me open on variable life insurance instead on mutual fund because as if im hitting two birds since the former has insurance and investment. I also toke the questions for “your risk profile” and i got a score of 49-means im a risk taker, hence i am qualified to invest in equity fund.
My questions are:
1.is it advisable to invest in variable life insurance, not only me but all the members of my family? It seems too expensive since for 1 million benefit almost 50,000 placement each.
2. Or my other savings will be placed to stocks investment?
3. I’m also willing to invest in philequity but my problem is i’m in bicol and its hard for to be travelling to manila because i’m studying in law school while playing the role of working mom and husband is working abroad. Our 1-year old baby is longing for the presence of his parent.
Thank you so much Ms. Fehl for a free consultation we had from you. I’m ashamed to ask more because i’m also a CPA yet i’m not knowledgeable on this. 🙂 .
Hi Clara. 1. It’s advisable to have VUL if you don’t have any active insurance yet. However, you must choose and get to know about your VUL better and don’t rely on the insurance rep. introduction alone because it’s their role to convince you to get VUL even if you don’t need them badly. They earn commission for every account they get. 🙂
2. If you want to open investments for other members of your family, that would be great. I believe that when you invest at age 5, you can be multi-millionaire by age 15 or 20
3. I think you can submit your documents at their eBiz branches partners (they have so many nationwide). Just go tho their website and go to the “Invest & Redeem” and select “Procedures” you’ll find the complete steps in opening an account and the link to their eBiz branches. I think you can open an account online or via email.
Send my hugs to your little baby. Hey, don’t be ashamed coz we can all share everything here. I’ll be happy for anything you share coz I know I will learn too 🙂
i am following your posts coz i can get valuable info from your posts… thanks for it!
i am investing also in TEL and BDO ang bilis tumaas ng price…
may tanong ako regarding sa uitf equity. which one is okay mag subscribe ba kung mataas ung NAVPU or bumaba or no need to look the NAVPU just subcribe any time at ano ung each adv/disadvantages… hope you can share your insights… ty
Hi Reuben. Thank you for visiting. 🙂 Regarding UITF Equity, buy units when the NAVPU is low that is usually when the economy is experiencing calamities like typhoons. It’s around Aug. Sept, Oct. Sept. most of the time. Anyway, the best time to invest is always yesterday or few years ago coz time is money and companies grow bigger if not recover.