BY LORENZO KYLE SUBIDO
ILLUSTRATIONS BY JASRELLE SERRANO

Not everyone has business savvy, but there are other good investment options.

It was Rich Dad Poor Dad author Robert Kiyosaki who said, “It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” Indeed, having large amounts of capital won’t matter if it isn’t used to further grow your wealth, and the best way to make your money work for you is by investing it.

One of the most popular investment vehicles is businesses. Whether it’s starting your own, opening a franchise, or helping out a friend, there are several ways you can grow your money with business. Not only are they great investments, businesses can also give you the opportunity to help improve the lives of others.

But investing in a business isn’t for everyone. Unlike other investment vehicles, there are several other factors to consider into making sure a business is profitable. Investing in businesses also has a lot of risk involved, which may turn off more conservative investors.

Fortunately, there are several other investment vehicles available that can better suit your needs. Here are five options where you can invest your money to make it work for you:

Stocks and bonds

Perhaps the most well-known investment vehicles, stocks and bonds are common answers when someone asks where they can invest their money.

Stocks are issued by companies listed in a stock market, which in the country’s case is the Philippine Stock Exchange (PSE). The PSE has over 250 listed companies that each have their own stock, a bulk of which are traded every day. Because of this, stocks constantly increase and decrease in value, which means they have the potential for high gains as well as high losses.

On the other hand, bonds are issued either by the government or by large companies. They are given a set interest rate over time, which makes investing in them a generally safer option than stocks. However, this often means that you’ll get lower returns with bonds when compared to stocks and other riskier investment vehicles.

Pooled funds

Knowing which stocks or bonds to invest in to maximize profits involves a lot of research. If you go into them blindly, then chances are you won’t see your investments turn any profits. But if you still want to invest in stocks and bonds without doing large amounts of research, you can invest in pooled funds.

Pooled funds are investment products curated by financial professionals, which ensures that they are well-researched and tailor-made to maximize profits. Many banks and investment houses offer unit investment trust funds (UITFs) and mutual funds respectively, which allow you to indirectly invest in a diverse portfolio of stocks and bonds.

While you’ll still need to do proper research on which investment houses have the best products, pooled funds allow you to participate in the stock and bond markets with the expertise of licensed professionals.

Real estate

Investments aren’t limited to financial assets like stocks, bonds, and foreign currencies. There are several big-ticket items that investors purchase with the intent of keeping them for a long time and seeing them appreciate in value. Once they sell it, they will have made large amounts of profit from simply holding onto the item.

Nowhere is this better observed than in real estate. While most buyers of residential properties such as houses, apartments, and condominium units do so for their own use, a growing number of them are treating them as investments rather than personal assets. As the value of real estate generally grows over time – especially in the Philippines, where residential prices have some of the highest growth rates in the region—property investments have a good chance of giving investors high returns.

On top of that, there are many ways you can earn extra income from properties while you watch its value appreciate. You can put your property up for short-term or long-term rent, allowing you to generate monthly returns and earn back your capital faster. This has become a very popular way of earning passive income that there are many dedicated platforms online that allows landlords to easily find tenants.

Good art

In the same vein as residential properties, art pieces can be used as investment vehicles rather than simple collectibles. With paintings and sculptures fetching high prices in galleries and auctions, many investors are looking at them as another potential opportunity for large returns.

Like real estate, the value of art pieces appreciates over time, especially if it was created by a well-known artist. As there are much less art pieces than stocks, bonds, or even residential properties, many art collectors would purchase works for very high prices compared to when they were first sold if they are particularly rare.

However, there are many more factors that go behind an art piece’s price. Perhaps the most important is authenticity—art investors must be very careful that the pieces they’re buying aren’t counterfeits. Price movements of art pieces are also much more unpredictable compared to other investment vehicles, which means that investors must pay closer attention to the market.

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