What Are the Easiest Investments to Get Into? A Guide for Beginners

Investing offers a powerful way to grow your hard-earned money and build wealth over time. You might think it’s only for the wealthy or financially savvy, but that’s certainly not the case. For years now, it’s possible, even easy, for everyday consumers to start investing even with just small amounts. With so many beginner-friendly investments available, you can find the right fit for your financial goals and risk tolerance.

If you’re interested in investing, EastWest has prepared a guide that will walk you through some of the easiest ones to get into as a beginner.

Trust Products

Offered by banks and financial institutions, trust products are an excellent starting point for new investors. These are managed funds where a professional handles the investment on your behalf so you don’t need to do a lot of decisionmaking. Some of the most popular trust products include bonds, stocks, and other securities bundled into a portfolio.

Why are trust products beginner-friendly? First, you don’t need to worry about choosing and managing individual investments. A professional trustee or fund manager takes care of that for you. Second, you can start with a relatively low initial investment, which makes it accessible even if you’re working with a modest budget. 

Unit Investment Trust Funds (UITFs)

A specific category of trust product, unit investment trust funds or UITFs are pooled investment funds managed by banks and other financial institutions. When you invest in a UITF, your money is combined with that of other investors and then invested in a diversified portfolio of assets such as stocks, bonds, or money market instruments.

UITFs are easy to get into because you can start with as little as PHP 1,000 to PHP 10,000, depending on the institution. Just like other trust products, they are also managed by professional fund managers, so there’s no need for you to deal with the complexities of the stock market or other investment vehicles by yourself. Just keep in mind that UITFs are not insured by the Philippine Deposit Insurance Corporation (PDIC), and the returns are not guaranteed. This means there’s a level of risk involved, but this can be mitigated through diversification.

Mutual Funds

Mutual funds are similar to UITFs in that money is pooled from various investors to create a diversified portfolio. The key difference is that mutual funds are offered by investment companies rather than banks and are regulated by the Securities and Exchange Commission (SEC) in the Philippines.

One of the main advantages of mutual funds is their flexibility. You can choose a fund that matches your risk appetite, whether it’s conservative, balanced, or aggressive. They are also beginner-friendly because they allow you to invest in a wide range of assets without requiring large amounts of capital. 

Pag-IBIG MP2 Savings Program

The Pag-IBIG MP2 Savings Program is a government-backed savings scheme that is known for offering higher returns than regular savings accounts. This program is open to all Pag-IBIG members, including overseas Filipino workers.

What makes MP2 attractive to complete investment newbies is that it’s very simple to get into and it’s also low risk. You can start with as little as PHP 500, and your savings earn dividends that are tax-free. The program is also flexible, allowing you to make additional contributions anytime. While the returns are not guaranteed, the historical dividend rates have been relatively high compared to other low-risk options, making it a safe choice for new investors.

Stock Market Investing via Online Platforms

Thanks to online trading platforms, investing in the stock market has become more accessible to beginners. It’s now easier than ever to find online platforms and mobile apps that allow you to open an account, fund it, and start buying stocks with just a few clicks.

While the stock market can be intimidating to navigate on your own, you can begin with blue-chip stocks or shares of well-established, financially sound companies. These stocks are less volatile and tend to provide steady growth over time. Start with smaller investments and focus on learning how the market works before diving into more complex strategies. Do keep in mind that the stock market carries higher risks compared to other options, so it’s essential to invest only money you can afford to lose.

Real Estate Investment Trusts (REITs)

Do you want to invest in real estate without the hassle of owning property? You can put your money on real estate investment trusts or REITs, which are companies that own and manage income-generating properties such as office buildings, malls, and hotels. By buying shares in a REIT, you earn a portion of the income generated by these properties.

REITs are listed on the Philippine Stock Exchange (PSE) and you can invest in them through online trading platforms. Compared to buying real estate properties outright, REITs require lower capital; they also offer regular dividends. However, like all investments, REITs come with risks, such as fluctuations in property values and rental income.

Getting started with investing doesn’t have to be complicated or intimidating. With options like EastWest Bank’s trust products and UITFs, you can find a beginner-friendly path that suits your needs and goals. Before going all in, remember to research each option thoroughly, understand the risks involved, and start small. Over time, as you gain experience and confidence, you can explore more advanced investment opportunities to grow your wealth further.