There are a lot of Financial Scams in the Philippines. Sadly, many Filipinos gets victimized. Reason? Lack of financial knowledge and most wants Instant Money. Who will forget Multitel (Multinational Telecom Investors Corp.)? Rose Baladjay started it, and it was probably the biggest scam in Philippine history. Approximately two million people invested in this company—which probably reached P100 billion. Multitel was so believable that they lured many military people and police officers to invest their hard earned money in the scam. Multitel promised 4 percent to 5 percent interest a month or 60 percent growth a year! They also offered to double your money in 18 months. This is why when you hear the word pyramid, the first thing that comes to your mind is SCAM. Agree?

A lot of new investors who recently started investing in the stock market are getting curious with other Financial Vehicles that we have in the Philippines and one of the famous financial vehicle is the UITF or the Unit Investment Trust Fund. Few months ago, my friend told me that he really wants to invest in UITF but he is afraid to lose his money when the bank goes bankrupt and closes down. I also saw this question raised in pinoy money talk forum. Unfortunately it was not answered correctly and there are too many incorrect answers so I decided to write this in my blog.

I attended a seminar and my seat mate asked me that question. I was about to answer him, but the seminar resumed from break.

I rarely received questions regarding investing. Why? Because based on the data, only less than 1% of the Filipino population actually invest in stocks, mutual funds, etc. Majority of Filipinos place their money in bank deposits, which earn a measly 0.375% per year.

I received a call from a fellow OFW in Singapore on a rainy midnight just the other day. I'm sleepy already but there's an urgency on his voice. He asked me "Where can I invest?" Not so many friends ask me regarding this question, So I decided to get out of bed and made sure to give time to talk to him regarding the matter. I told him before we proceed, I need to  ask him few questions first, and he agreed.

If you ask a typical OFW what he would want to buy when he have money, the common answers would be House and Car. Most people borrow money just to build their dream house. After the dream house, they will buy expensive appliances, big screen TV, sound systems – the list goes on and will be never ending expenses. Sa liabilities lang napupunta ang pinaghirapan kapalit ng pagwowork ng ilang taon sa ibang bansa. The OFW then is trapped and forced to work overseas, specially if nag loan si OFW to build his house not to mention pa ung pinang bili ng appliances. Once the OFW returns to Pinas after several years of paying utangs for the house and appliances and if he has no passive income. He may need to work again overseas or worst pag may emergency naibebenta pa nla ung bahay nla.