I used to fear the term “stock market” when I see or read it from the internet, newspapers or on television. I thought only the rich and big companies can invest in it. After attending one of the free financial literacy trainings here in Cebu, I learned that you don’t have to be a brain surgeon or a rocket scientist to consider investing in the stock market. Anybody who has at least P5,000 can start.To put it simply, anybody who has work can definitely invest in the stock market.

There are to ways to invest in the stock market.
1. Indirect Investment
2. Direct Investment

Let’s tackle them up close:

Indirect Investement

Mutual Fund companies are probably the easiest and safest way to invest in the stock market indirectly. There are many great ones around. In the Philippines, there are around 41 mutual fund companies that you can choose from. Not all of them are created equal. You can choose from the list based on their stability and track record. Doing your due diligence may take some time but it is important. This is also where your financial advisers come into picture. These people already made extensive research about the industry and consulting from them saves you time, a lot of it.

On the average, you can earn 12% or much much more. The key to this is doing it long term; ten years or more. All you need is to invest a small amount every month. You’ll feel the power of compound interest over time.

Direct Investment

If you can do it on your own, you can skip the middleman(e.g. mutual fund companies) and directly manage your stock market investments. Stock market is buying stocks of great, solid companies. Just like in mutual funds, the key is also to do it long term. You’ll earn at an average of 20% per year if you do it right. Disregard the recessions, crisis and the lows. Just keep investing when others are in panic. Discipline is very important.

There are organizations that can guide you how to be successful in the stock market. And again, you don’t have to be filthy rich. I know somebody’s house helpers who invest in the stock market and these people only earn Php7,000 each month. These people will retire Php 5 million richer in 20 years. If they can do it, why can’t you?

P.S.

Warning: There are a lot of scams out there that take advantage of ignorant people and run away with their hard-earned money. Please be careful. If you have any questions, the link below has been provided for you to contact.

Here:
Anyone can Invest in the Stock Market. | Financial Planning 101