Insights and Announcements | Blog

5 Things to Consider First Before You Start Investing

Written By
Angelo Silva

Published on
Jul 13, 2021

Reading time
3 mins

Share this article

We can all agree that investing is important. Saving is only the first step to reaching a financially worry-free future. The next step is to INVEST. To guide you in making your first investment, we are sharing five key things you need to consider. These five factors will have a significant impact on your investment decisions.

Your income

Can your current income accommodate the monthly investment you will be making? The rule of thumb from financial advisers is to invest 10-20% of your income every month. Now decide whether you can fit the said investable amount with your current income without hindering your daily living or you becoming in debt.

Your age

The younger you are the more risk-tolerant you become. Thus, you are able to allocate more of your money on assets that have higher risk for a possibility of higher return. Another way age plays a difference is the power of compounding. The earlier you start investing, the more your money can earn interest over interest and grow overtime.

Your savings

Make sure you have built your savings first before you invest. Having a prepared emergency fund will help you invest worry-free. As we are all aware of, every investment comes with some degree of risk so better get everything set than sorry.

Your risk factor

Again different investments, different degrees of risk factor. Thus, you’ll need to assess which category you fall into. Assessing your risk factor is important so you’ll know which type of investor you belong to. Are you more of a Conservative Investor - low risk tolerance, leaning more on a portfolio with steady growth? Are you an Aggressive investor - higher risk tolerance, want higher return through long term investing. Or are you a mixture of the two also known as Moderate Investor with a risk tolerance on a medium level.

Your goal

What are you trying to achieve with your investment? Is it for your children’s education? Your own house? Your retirement? Your goals can define which investment vehicle best suits you. At First Metro Asset, we offer mutual fund products for both short-term and long-term goal you may have. ➡️ Save and Learn Equity Fund ➡️ Save and Learn Balanced Fund ➡️ Save and Learn Fixed Income Fund ➡️ Save and Learn Money Market Fund ➡️ Save and Learn Philippine Index Fund ➡️ Save and Learn Dollar Bond Fund ➡️ First Metro Consumer Fund ➡️ First Metro Exchange-Traded Fund These investments are professionally managed by a team of fund managers who can help you attain your aspirations.

Previous Important Advisory | First Metro Asset continues to Serve Important Advisory | First Metro Asset continues to Serve

Next Build your First Budget in 6 Steps Build your First Budget in 6 Steps

See all articles ➔

Insights and Announcements

Wise Money Tips for the OFWs in the Pandemic

Insights and Announcements

4 Things You Should Know Before You Start Investing

Insights and Announcements

The 6 Biggest Investing Mistakes You Should Avoid