Last month, I finally had a chance to enable the GCash Invest Money feature on my account. I wasn’t able to get it done in the past because after some app updates my fully verified status was wiped out. I thought it may take a while for me to verify again but I was wrong. It only took few minutes after sending IDs.
Anyway since I was able to fully verify my account again, it is time for me to try out the new features that I have missed. One of them is the GCash Invest Money. Let’s discuss a few things about it and some insights about my experience in using it.
BTW, just a simple disclaimer, I am not an expert when it comes to Investments. I’m just really into trying this feature out and if it’s worth it then I’ll continue using it. We may need to check out some financial advisors about complex ideas about investing.
First of all, what is GCash Invest Money?
Well, from the word itself, it is the investing platform provided to GCash users. It allows you to use your GCash balance to subscribe to an investment, very straightforward.
Few terms to be aware of…
Subscribe – this is your way to buy an investment on GCash.
Redeem – to sell out your investment and turn it into GCash balance.
Risk Profile – is your willingness to take risks in making investments. It can be conservative, moderate or aggressive. Usually, lesser risks have lesser returns and lower chance of loss. While higher risk can provide higher returns and higher losses. Your risk profile is determined by answering a few questions when Signing up.
NAVPU – this is also known as “net asset value per unit”. Since I am just a normal person and not a financial advisor, I’ll define this in a normal way too. When subscribing to an investment they’ll give you NAVPU, it is like when you buy rice 60 PHP per kilo. Kilo is same as NAVPU. If you’ll buy rice for 90 PHP, you’ll get 1.5 Kilos. Meaning you invested 90 PHP for the value of 1.5 NAVPU. Gets? Hahaha.
How to get started with GCash Invest Money?
You must be a fully verified GCash user first.
On the app, you just have to open the Invest Money icon and follow the on-screen instructions. That also includes agreeing to Terms and Conditions and answering the Risk Profile test.
Make sure that you answer them truthfully and understand the possible losses you may encounter in investing.
They’ll send you an SMS if it is approved or not. In my case, I got the approval message a few minutes after registration. I am not sure if this may vary and why there is an approval process but for reference here’s the FAQ answer by GCash why some may be disapproved.
ATRAM, our partner product provider who screens registrations, is required to conduct standard due diligence on the prospective investor. As such, if the investor fails to meet certain pre-set criteria, their registration submission may be declined.
Once your account is verified you can start investing for as low as 50 PHP.
Subscribing and redeeming your GCash Invest Money
When subscribing for an investment, the entered amount will be debited from your GCash automatically. However, the subscription will remain pending and may be completed within 1 to 2 banking days.
Meanwhile redeeming an investment is different. It usually takes 2-3 banking days to show up on your GCash balance.
Whether you are subscribing or redeeming the minimum amount they can process is at least 50 PHP. No subscription or redemption fees. That is the cool thing I like about it.
I tried checking things about investing in the past and most of the investing platforms have fees when redeeming early or whatsoever. With GCash Invest Money you can subscribe and redeem anytime you like without any fees.
GCash Invest Money Partner
GCash partnered up with investment companies to provide this service possible to common Filipinos. I remembered seeing two partners during registration. On their website, they mentioned Seedbox Philippines and ATRAM. I am not familiar with these investing companies or whatever but that is their partner, just in case you wanted to know.
Setting up reminders for investing!
This feature is quite amazing because you can set up reminders to invest so you won’t forget about it.
Experience and investment trial logs…
I like that GCash keeps on improving their services to enhance our financial awareness and provide more reach to services that most Filipinos had no access with.
I started investing in May 27, 2019.
My Risk Profile : Moderate
Investment Product : ATRAM Peso Money Market Fund
Product Risk Classification : Conservative
From May 27 up to June 17, 2019, I have done 5 subscriptions and 1 redemption for testing purposes. Currently, my total invested amount is 1200 PHP and in this period it gained 1.27 PHP. For me, it is a good sign because it is higher than savings interest.
With bank deposits you usually get cents for monthly interest and will deduct some tax.
Some important notes
Feel free to share your experience or ask questions in this post. I am aiming to make this content helpful and useful by updating it from time to time. However, I’d like to let you know that I am not from GCash or affiliated with them so for any serious and account related concerns, contact them at [email protected]
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