Is it a good time to invest during inflation ?

Tuesday, October 16, 2018


The word “inflation” keeps on popping in our social media news feed almost everyday, people start to point finger and blames why every items on the grocery shelves starts to have a higher price. During the 2019 Market Outlook  And Bright Offerings presscon by Sun Life, we got some of information that we need to know --- we can worry about and be prepared on how to stay stable.

Inflation in the Philippines
Its hard to communicate with lots of numbers, many Filipinos don’t understand well when you show them charts and numbers, but from what I understand from the press con is that INFLATION is the biggest problem of the government ---- its the government and not the Philippines, but the Filipino people will be on the burden side because everything will fall into our lap and we have to do something in order to have a stable life.

When there’s inflation, we expect that the BSP will increase its interest rate, and during the inflation period, the interest will continue to go higher. But on the lighter side, when there’s bigger interest rate, it means that the government will have more fund for infrastructure project -- means more project to build for the country’s development. But if the budget deficit continues to balloon, then the government will have to borrow more money.

The problem with inflation - many companies will have a hard time funding their business because during the inflation period, it will be more expensive.

The Forecast
But the good forecast that I have heard during the presscon is that … on 2019 --- inflation will be gone and prices will go lower once again.



Is it a good time to invest?
Many questioned that if its a good time to invest even during the inflation?
The answer is-- Sun Life Asset Management said "yes", and that you can start investing as low as PHP 1,000 via their Sun Life Prosperity Funds.

With that 1,000 pesos minimum investment rate, you can start investing on government securities, bond, balanced, Philippine Stock Index and equity funds.

Here are the benefits of Sun Life Prosperity Funds
- You can invest as low as PHP1,000
- it can generate a higher return compare to traditional deposits
- You beat inflation and you are still on track to long term financial goals
- Your money is invested in different range of financial outlets in order to minimize the key risks relating to credit, interest rates, foreign investment and markets.
- You can change where your money is invested, only allowed 4 times per year.
- Fund shares can be redeemed at current fund value.


Also check out this article: How Mutual Funds turned me into a millionaire in 5 years

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