The Philippines has experienced plenty of political and economic storms over the past century and the local economic, political and social situations has driven millions of Filipinos from their homeland into distant lands in order to earn a decent income. There is a large Filipino Diaspora throughout the world from the Middle East to Europe, the US, South America, Canada, North Africa, Japan and various other Far Eastern and South East Asian countries.
Many of them are permanent migrants with no plans of coming back home. Many of them also still retain strong ties with family back home or are seasonal workers who come home frequently when their contracts run out. Filipinos fled their home for greener pastures in order to make the lives of their loved ones better. It is no surprise, therefore, that the OFWs send home one of the largest remittances in the world, totalling some $27 billion in 2015 alone.
While many of the jobs abroad pay very well, years of productive work may amount to nought if the money is not saved and reinvested in some gainful ventures and many Filipinos are now looking back home for opportunities to invest and multiply their money which can serve as a safety net for the future and also helps in supporting their families back home through profitable and sustainable business ventures.
Poultry is a Popular Investment Option for Many OFWs
One business investment that is quite popular with many OFWs is poultry farming venture. Many opt for this business because you don’t require much capital to invest in poultry farming. You also do not need any specialized skills to be a successful poultry farmer.
One challenge with setting up a poultry farm while working overseas is that you are not there physically to manage the setup and costs and you are likely to entrust it to a family member. Even with the best efforts, this may not lead to success does not have the experience and the passion in setting up the poultry business. So you might find yourself saving and sending P100,000 back home but you don’t get the expected results or the business simply does not take off.
One innovative poultry investment approach that was particularly geared at OFWs was started in Davao City over a decade ago although it seems to have collapsed. This was the virtual poultry farming venture that basically took out the anxiety out of sending your money back home, monitoring and managing your poultry venture while working overseas.
How the Virtual Poultry Farming Program Worked
- An OFW would invest P50,000 to buy shares in the poultry corporation with a guaranteed rate of return of 7%. Granted, this was not much but it would be a safe place to keep your money and let it grow. Remember that banks offer much lower interest than this on your savings.
- The venture would issue cash dividends at least twice a year.
If you are planning to venture into poultry farming today as an OFW and an absentee farmer, the best option would be to go into contract poultry farming relationships with the big contract poultry farming companies such as San Miguel and hire a labourer that can look over the farm on a regular basis. You can also set up an egg production venture and supply the eggs to the local market. The income will not only go into your savings but it will also help meet the expenses of family back home in the Philippines.
Mutual Funds
Mutual funds in the Philippines generally take the hard work out of your investments allowing your money to work for you silently in the background. Your money will be managed by very capable investment managers so as to yield a certain ROI. If you can put a lot of money into mutual funds, it is going to be worthwhile over the long run, especially as you retire from your life as an OFW and make your way back to the Philippines. You can also pursue mutual fund investment options in your current country of residence. Compare and see where you get the best ROI. In the Philippines, some of the best mutual funds that you can try out include the ATRKE Alpha Opportunity Fund, the Sun Life Prosperity Philippine Equity Fund, ALFM, the Soldivo Funds and the ATRKE Alpha Opportunity Fund.
The Stock Market
With competent advice on the best stocks to purchase, the stock market can grow your money. To get started, you will need to open an account with any of the leading stockbrokers in the Philippines. The good thing is that these stockbrokers also offer online brokerage services so you can buy stocks from the comfort of your overseas location. However, make sure that you have done adequate research on the best stocks to purchase.
Real Estate
This requires a lot capital and you might need to pool investments or take a bank loan in order to venture into real estate investments. There is cost of acquisition of land which can be quite high depending on the location. Other costs to keep in mind include the rates, cost of construction and labour etc. Land and property generally appreciate so this can be a great investment for the future.
Bonds
Bonds are a safe investment although the return on investments is not always that great. The bonds generally have a fixed maturity rate. Banks selling bonds include PNB, Metrobank, BPI and BDO among others.
Small businesses
Business is fraught with risks but there are various small businesses where you can put your money if you have an excellent partner back home to work with. These can include hotel business, transportation business, car hire business, restaurant business, other agricultural businesses etc.
What are you putting your money in back home? Share with us in the comment section below.