Many Filipinos in the UAE struggle living from paycheck to paycheck and wonder how they could extract themselves from the vicious cycle of their salary just passing through their hands in the form of remittances, bills, and other expenses.
And while they are aware of investments in their many forms, they easily hesitate due to factors including a seeming lack of time to pour in to learn more about these investment products. Their fear of investing a huge amount of money also hinders them from committing in the first place.
However, as they count the years, many OFWs are now finding ways to not only enjoy their lives here in the UAE, but also to explore ways as to how their money can work for them. Among the many solutions they are looking into, government-issued bonds and mutual funds stand out from the rest.
Opportunities from AED 80
Premyo Bonds are government-issued investment products that pay a fixed interest every quarter until maturity. Investors may also win cash and non-cash prizes in the quarterly raffle draw. Guaranteed by the government, investors are sure to get the interest and principal returned upon maturity, regardless of the status of the economy. Minimum investment is around AED 40, and offer period usually starts in November.
Meanwhile, mutual fund is an investment wherein a trusted financial institution pools together various investors’ money that is invested in a basket of cash, bonds, stocks, or a combination of all. As the fund value grows, the investor’s share value also grows.
One of the most trusted investment platforms among OFWs which offers both mutual funds and bonds is FirstMetroSec, the stockbrokerage house of Metrobank. For as low as AED 80, OFWs can invest without sales load or agent fees in mutual funds from the Philippine’s top providers like ATR Asset Managament (ATRAM), ALFM, Philam Asset Management Inc. (PAMI), PhilEquity Management Inc.(PEMI) and Sun Life Asset Management Company Inc. (SLAMCI).
In addition, mutual funds are expertly managed by fund managers, so no need for constant monitoring. All gains that OFWs receive on their mutual funds are also tax-exempt so they can get the full amount that they earned. For instance: If an investor buys a mutual fund at P1.00 per share and sells it at P5.00 per share, his gain of P4.00 per share will be exempted from capital gain tax.
These funds are likewise covered by the Investment Company Act and regulated by the Securities and Exchange Commission. This, along with the ease of access to liquidate or redeem mutual fund shares at any time, ensures that FirstMetroSec takes care of your money.
Selecting the right mutual fund
OFWs will also be gauged through a comprehensive personality test that will help determine their ‘Investment Profile’. With this, OFWs will know their investment risk appetite, as well as the types of mutual funds that fit their objective, time horizon, and risk tolerance. Here are the types of mutual funds:
- Money Market – short-term, safest mutual fund type thus gives the lowest returns.
- Bond – invested in securities that receive fixed interest rates. This is perfect for OFWs who wish to have a stable and moderate income from their investments
- Balanced – a mid-level risk type of investment that combines the stability of bonds and growth potential of stocks.
- Equity – invested in stocks and provides the highest return potential, but is also the riskiest. This is ideal for long-term investment.
How can I begin?
OFWs who plan to begin their investment journey may open an online account with FirstMetroSec to get an access to over 40 peso and dollar-denominated mutual funds, over 270 stocks listed in the Philippine Stock Exchange, and government bonds. Visit www.firstmetrosec.com.ph to learn more.
The Filipino Times and FirstMetroSec will also be holding a free webinar titled: “TFT Usapang OFW: Investment options na pasok sa AED80 budget mo!” to help you start investing as you continue to work abroad.
FirstMetroSec Business Development Officer John Philip Billones will lead the first of three webinar sessions and share his insights for OFWs on how they can start earning through affordable investments. Viewers also have a chance to win exciting prizes which include 7-Eleven vouchers and FirstMetroSec merchandise that will be delivered at their Philippine address.
The “TFT Usapang OFW: Investment options na pasok sa AED80 budget mo!” will take place this coming July 2, 2021, Friday at 12:00 pm UAE time (4:00 pm PH Time).
