MORE Filipinos are resorting to investing in order to prepare for their financial goals and there is a growing interest in investing among millennials and the middle class.
A study by Sun Life Asset Management Co. Inc. (SLAMCI) Chief Marketing and Client Officer Mylene D. Lopa said 39 percent of Filipinos now invest their money to prepare for their financial concerns.
While this is a lower percentage compared to those who just manage their finances through budgeting (at 62 percent), and those who spend their money only on planned purchases (54 percent), Lopa said this is still encouraging since the figure of those investing their money five or six years ago were much lower, at less than 10 percent.
“So the fact that we’re now seeing a third of people mentioning investing as a way to prepare for the future is really encouraging for us. So, there is hope,” she said in a presentation during the kickoff of the “Make it Mutual,” a successful investor education campaign to encourage more Filipinos to make mutual funds their choice of investment as they strive to achieve their financial goals.
Moreover, Lopa sees a bright spot with the growing interest of millennials and the middle class in investing.
The Philippine Stock Exchange Investor Profile Report 2018 says that 21.5 percent of stock market investors were aged 19 to 29, and 43.1 percent of stock market investors were aged 30 to 44.
“So 1 out of 5 investors in the Philippines right now in the stock market are young, which I believe…we have not seen a decade ago, so the change is happening. So this is a very crucial time for us to really sustain the momentum and keep on introducing initiatives that will sustain and encourage the younger generation to be active,” she said.
Besides the younger generation, even the middle-income earners are starting to invest more, Lopa said.
The same report also showed 62.4 percent of stock market investors come from those earning less than P500,000.
Lopa also attributed the growth in millennial and middle-market investing to digital technology which opened up their access to information.
Thus, Sun Life is once again launching a series of four digital videos to highlight the ease of investing, where one can now open an account online through the Sun Life portal or mobile app for only P1,000.
These would also highlight the importance of choosing the right fund so that it suits the investors’ personality and priorities, as well as the need to invest regularly for the long term in order to stay on track of one’s financial goals.
“SLAMCI has been working hard to make investing more accessible and affordable to investors, and our latest initiatives will be featured in the latest Make it Mutual campaign,” SLAMCI President Valerie Pama said. “Moreover, we hope to promote a long-term mindset when it comes to their financial journey, so they can fully enjoy the benefits of their investments.”
The campaign, to be released on social media so it may be easily accessed and shared by viewers, will once again feature SLAMCI brand ambassador Matteo Guidicelli.
“Make it Mutual” is one of SLAMCI’s offerings this year as the company marks its 20th anniversary.
SLAMCI remains to be the largest non-bank affiliated asset management in the country, with P83 billion in Assets under Management. The company manages 10-peso denominated funds and five-dollar-denominated funds, which are distributed by over 2,500 Licensed Mutual Fund Advisors nationwide and 10 bank partners.
