#ReaderAsks: Should I invest P5,000 of P25,000?

Question:

Should I invest P5,000 of P25,000?

Answer: 

When investing in the stock market, one of the several homeworks which you need to do is to determine your risk appetite whether you're a risk averse or risk taker type of person. Also, please do keep in mind that money that you invest shouldn't be your lifetime savings. You need to save a portion of your salary and make sure it's your spare fund or not the one that you would constantly or regularly need. Again, don't bet your whole life savings especially when you're just starting to invest and have little to no background of how the stock market works. 

When I started, I invested P 25,000 through Citiseconline since it's their minimum opening balance requirement. I wish I've put in much more since you couldn't really buy a lot of stocks with such fund. However, if you're just starting and wish to observe the trend of the market, do not bet your whole savings. So again, when you are just starting, you may want to invest P5,000 just to kick start your investing journey and you could do that through First Metro Investment Corporation, a subsidiary of Metro Bank. Research on a single company and focus on its future plans and current standing. It's hard to diversify when you have such a limited fund so it's best to focus on a single company and when you think you could manage to invest in more companies, that's the time when you could try adding more. 

If you are a risk taker, you may want to start investing with like P25,000 and check on various companies so if you are sure as to which do you wish to invest in, it's much easier to diversify. 

For other questions that were previously asked and answered, feel free to read other #ReaderAsks.