Investment Proposal

By:
Ericka Joy DG. Dela Cruz
 Sources of Growth in the Philippines

1. The Business Process Outsourcing (BPO)

industry is regarded as a priority by
the Philippines Development Plan as essential to
the country's ten high priority development
areas. To further entice investors, existing
government programs include incentives such as
tax holidays, tax exemptions, and simplified
export and import procedures. It is also the
contracting of a third party agency or
professional to perform specific tasks and
operations that are traditionally done within the
organization. BPO can be local, national or
offshore. Companies outsource non-core
activities like back office tasks, as well as highly
specialized and technical services from data
analytics to consulting.
2. OFW remittances are closing the gap
between the poor and the wealthy by
contributing to a growing middle class. With
improved living conditions and more
disposable income, the consumption of goods
and services increases, which drives
the economy forward. OFW remittances have
contributed significantly to the country’s
foreign exchange earnings. In doing so, these
remittances have contributed to
strengthening the nation’s position regarding
balance of payments, bolstering the surplus
on current accounts.
 Potential
Investments
1. Banks - Investment banking is a
specific division of banking related to the
creation of capital for other companies,
governments, and other entities.
Investment banking activities include
underwriting new debt and equity
securities for all types of corporations,
aiding in the sale of securities, and
helping to facilitate mergers and
acquisitions, reorganizations, and broker
trades for both institutions and private
investors. Investment bankers help
corporations, governments, and other
groups plan and manage financial
aspects of large projects.
2. Mutual Funds - A mutual fund
is a company that pools money from
many investors and invests the money
in securities such as stocks, bonds, and
short-term debt. The combined
holdings of the mutual fund are known
as its portfolio. Investors buy shares in
mutual funds. Each share represents
an investor’s part ownership in the
fund and the income it generates.
Investing in mutual funds provides
several advantages for investors. To
name a few, flexibility, diversification,
and expert management of money,
make mutual funds an ideal
investment option.
3. Bonds - a type of investment that results
in an investor lending money to
the bond issuer in exchange for interest
payments. Bonds are one of the most
important investments available for those
who follow an income investing philosophy,
hoping to live off the money generated by
their portfolio. They provide a predictable
income stream. Typically, bonds pay interest
twice a year. If the bonds are held to
maturity, bondholders get back the entire
principal, so bonds are a way to preserve
capital while investing. Bonds can help offset
exposure to more volatile stock holdings.
4. Stocks - offer investors the
greatest potential for growth (capital
appreciation) over the long haul.
Investors willing to stick with stocks
over long periods of time, say 15 years,
generally have been rewarded with
strong, positive returns. Investors buy
stocks for various reasons such as
Capital appreciation, which occurs
when a stock rises in price, Dividend
payments which come when the
company distributes some of its
earnings to stockholders and having
the ability to vote shares and influence
the company.
5. Investment property - a real
estate property purchased with the
intention of earning a return on
the investment either through rental
income, the future resale of the property,
or both. The property may be held by an
individual investor, a group of investors,
or a corporation. Real estate is generally
a great investment option. It can
generate ongoing passive income and
can be a good long-term investment if
the value increases over time. You may
even use it as a part of your overall
strategy to begin building wealth.
Comprehensive Report
3 Potential
Investments
 1. Property Investment

Real estate investors make money through rental income,

appreciation, and profits generated by business activities
that depend on the property. The benefits of investing in
real estate include passive income, stable cash flow,
tax advantages, diversification, and leverage.
• Pros. Less volatility – Property can be less volatile than
shares or other investments.
• Income – You earn rental income if the property is
tenanted.
• Capital growth – If your property increases in value, you
will benefit from a capital gain when you sell.
It shows below how this kind of investment works successfully not only
for many businessman but also for investors. It have a high rates which
means it generates a big income and return when people invest for this .
 2. Mutual Funds
Mutual funds offer investors a great way to diversify their holdings
instantly. Unlike stocks, investors can put a small amount of money into
one or more funds and access a diverse pool of investment options. So
you can buy units in a mutual fund that invests in as many as 20 to 30
different securities. Mutual funds offer investors a great way to diversify
their holdings instantly. Unlike stocks, investors can put a small amount
of money into one or more funds and access a diverse pool
of investment options. So you can buy units in a mutual fund that invests
in as many as 20 to 30 different securities. Investing in mutual funds is
one of the most popular and effective ways to create wealth for the
future. It is also a great way to generate passive income. This is due to the
appealing long term returns and diverse investment options.
The advantages of investing in Mutual Funds are Diversification at every dollar level,
Sharing of investment expenses, Economies of scale and operational efficiencies, Easier to
invest like in specialized market sectors, Easy to access and track, Simplified portfolio
management, Access to professional money managers and also have Low trading costs.
Among the other Investments, Mutual Funds is the best choice for investing because
of the high returns can get . It have a high risk but it generates high income/ profit.
The advantages for investors include advanced portfolio management, dividend
reinvestment, risk reduction, convenience, and fair pricing.
 3. Bonds

Although bonds may not necessarily provide the biggest

returns, they are considered a fairly reliable investment tool.
That's because they are known to provide regular income.
Bonds tend to be less volatile and less risky than stocks, and
when held to maturity can offer more stable and consistent
returns. Interest rates on bonds often tend to be higher than
savings rates at banks, on CDs, or in money market
accounts.
Bonds Investment have relatively low volatility, high liquidity, legal
protection, and a variety of term structures compared from stocks. It
have a low risk where in the investors can make sure he/she can gain
profits or income from this kind of investment.
It can be a good investment for those looking for safety and a fixed rate of interest
that's paid semiannually until the bond's maturity. Bonds are an important piece
of an investment portfolio's asset allocation since the steady return
from bonds helps offset the volatility of equity prices. Bonds Investment is a low
risk which ensures that investors can get a regular profit. It can be a good choice if
the investors focus on gaining income even it is not high profit compared to other
investments which have a high risk for investing.