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Stock Market Investing

4 Major Reasons Why Filipinos Do Not Invest in the Stock Market

Kumusta mga kaibigan? How are you doing?

philippine stock market

Alam mo ba na wala pang 1% mga Filipino sa loob at labas ng Pilipinas ang nag iinvest sa stock market?

“Wow!”, diba?!

At hindi lang ‘yan, ang SGX, Singapore Exchange which was founded only in 1999 but the Singaporean has 33% participation in the stock market.

Malaysia’s population of 18% invests in the stock market and Hong Kong’s population by 17%.

Napansin nyo ba na ang mas mayayamang mga bansa and maraming nag iinvest sa stock market?

Kung papansinin mo, mas maraming tao ang nag iinvest at nag pa-participate sa stock market, mas mauunlad ang mga bansang ito.

As for the Philippines, well we have 0.50% of our population.. Aha! kaya pala, alam na!

And that’s not all, considering that the Philippine Stock Exchange is one of the oldest stock market in Asia (1927), pwede nating i-assume na marami sa ating mga kababayan ang nagpaparticipate sa stock exchange, pero sadly its less that 1% of our population.

Pero bakit nga ba hindi nag iinvest ang mga Filipino sa stock market?

Here some reasons why Filipinos do not invest in the stock market

Lack of Awareness, Not Interested

not interestedThe most possible reason why pinoys are not investing in the stock market is that, they are probably not aware of it.

It’s really not because they do not know what a stock or stock trading is, it just that they are not at all interested in buying one. They are not aware that long term investing in a strong company can have a better return than just putting their hard earned money and savings in a bank.

Hindi nila marahil alam ang concept na pwede silang maging part-owner ng mga malalaking companies at brands tulad ng Jollibee, Meralco, PLDT, Globe Telecoms atbp. At kapag kumita ang mga ito at tumaas ang value ng mga stocks nila, ay lumalaki din ang value ng ininvest nilang pera.

Lack of Knowledge

lack of knowledgePangalawang dahilan kung bakit hindi nag iinvest ang mga pilipino sa stock market ay marahil, hindi sila marunong kung paano nga ba ang proseso ng pagbili ng stocks.

Katulad ko halimbawa, noong una ang akala ko ay kailangan ko pang kumausap ng mga tao sa Philippine Stock Exchange office para makabili ng stocks (influence ng mga movies).

Lately ko lang nalaman na halos lahat pala ng bank (BPI, BDO, Metrobank etc)  at mga investing company tulad ng COLFinancial, Philstocks, etc ay may mga online platform na ginagamit upang bumili at magbenta ng stocks.

Mas madali na talagang mag buy or sell ng stocks.

“Ah stock market, oo narinig ko na yan pero hindi ko kasi alam kung papano”. Yan ang madalas sinasabi ng malaking porsyenton na Pilipino familiar sa stock market pero hindi pa rin sila nag iinvest dito.

I am really hoping that through this blog and all other great Filipino financial blogs out there, I hope na makakatulong at maipamulat sa mga Pilipino na ang stock market, stock trading at stock investing ay simple lamang at kayang kaya ng gawin ng mga pinoy.

Fear of Failure or Risks

fear of risk failureEven if they do have interest and learn the basics, another hurdle that’s blocking their way is the fear of failure of the thought of how risky investing in the stock market it is overwhelming.

Kung hindi mo kasi alam ang ginagawa mo, ang stock market or stock trading din ang pinakamabilis na paraan para mawala ang iyong pera.

In the first place, ang perang nakalaan sa stock market dapat ay ang mga ipon or extra pera mo dapat na hindi mo gagastahin or walang immediate need to spend.

Ito dapat yung mga pera na pang-save talaga. Pera na itatabi mo talaga sa investment instrument (stock market) ng matagalang panahon.

So, ibig sabihin ang pera mo na pambayad ng bills or pambili ng grocery or ang pambayad sa tuition fee, ang mga perang ito ay hindi dapat ilagay sa stock market.

Lack of Money

lack of moneyAnd finally, ang isa pang common reason kung bakit maliit na percent lang ng mga Pilipino ang nag iinvest sa stock market ay dahil sa kakulangan sa pera… No funds.

Papaano ka nga ba mag iinvest at bibili ng stocks eh ang sweldo ay sakto sakto lang para sa akin at sa aking pamilya.

Marahil ay makakatulong tayo d’yan.

Dito sa Kilos Kaibigan, pinag uusapan natin ang mga pwedeng pagkakitaan ng simpleng Juan.

Kung may trabaho ka, pwede kang magtabi ng konting bahagi ng sweldo mo para ilaan sa pag invest sa stock market.

Pwede ka rin humanap ng sideline na maliban sa sweldo mo, pwede mong gamitin ang kinikita mo sa side hustle mo para bumili ng mga recommended stocks.

Are You One of Us?

So there you go! Those are some of the reason that I think are the major reasons why Filipinos are not investing in the stock market!

Think about it! According to Google, the Philippine population is around 101 Million in 2015. (or around 103 Million as of April 30 2017 according to this website)

Philipine population

So if you are one of the less than one half of one percent of Filipinos who are INVESTORS, you are one of the few and should be proud! 🙂

Share this blog post to your friend so they too should be aware and hopefully, they will study and start to participate in the Philippine Stock Market.

If you have any question, please let me know!

 

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