Financial experts warn Filipinos about the many investment pitfalls that they could fall into, especially those who are not yet knowledgeable about proper handling of money.
Many Filipinos overseas have become open to the idea of investing, with many of them taking initiatives in learning more about financial literacy and property investments—as well as registering the Philippine Property and Investment Exhibition (PPIE)—the biggest, longest running and most trusted Philippine business and investment forum in the Middle East—via: http://events.ppie.ae/register/.
Among the things many OFWs are being warned about are the bad decisions they can easily make when it comes to investment. Many note that one mistake can lead to one losing all of their life savings in an instant, so it is important to have a guide when it comes to. The common pitfalls in investment.
Here are some of those:
People investing in something they do not understand
Many experts say that a lot of people are investing a huge chunk of their savings in businesses that they have no knowledge of. It’s important to research about the company and its financial structure, as well as their status in the market because you invest in it. If you still don’t understand what it does, then look for something to invest in—a property is usually the safest one.
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Those who judge the company based on market performance alone
The company’s current performance in the market, no matter how strong it is, is not enough reason for one to invest in it. This is why it is important to do diligent research because only then will you realize it’s not about high returns alone. There can be a chance that the company may not do well in the future, and will only lead you to suffer heavy loss. Sometimes, a good investment option is a company that has slow but steady progress.
Sticking only to one company
One cardinal rule in investment: realize that there is no guarantee in everything. Once you get attached to a company because it is currently performing well in the market, then you have met your pitfall. Always keep in mind that there is no guarantee it will perform well forever, so always look for other investment opportunities to put your money in. To effectively do this, seek a financial or investment advisor so you’ll know the best time to invest or sell your assets.
READ ALSO: More OFWs upbeat about investing in PH properties
Basing all investment decisions on negative news
It’s good to be on the know about the latest news because it helps you make an informed decision about your investment. But relying too much on negative news because it can lead you to overreact, which can affect your behavior towards investment. It’s important to seek the perspective of an expert to thoroughly explain to you everything you need to know about fluctuations in the market.
