GInvest Review: Is It Worth It?

As someone who’s only starting to invest — I currently only have two investments: the one that’s tied to my life insurance (VUL) and the house we’re paying for — I was really intrigued by GInvest. Does it work? Is it worth it? Here’s a rundown of my experience so far.

What’s GInvest?

It’s a platform within a platform (the GCash app) that allows you to invest money (as low as P50) in different funds: money market funds, bonds, and equity funds. Under the latter are global funds.

The idea behind its inception is to empower people to try investing because investing, as a concept, can be quite daunting.

How to invest in GInvest

Since it’s already on the GCash app, using the service is quite easy; it’s kind of like any other app where you fill out things and tap, tap, tap. You just have to be fully verified on GCash in order to use the service.

Just look for the GInvest icon on the app. You’ll be asked to take a test where you’ll find out what your risk appetite and ‘investing personality’ is. Aside from how comfortable you are about investing money, you’ll also be asked about your income and how frequent you plan on investing.

You can invest based on your risk appetite or invest however you want, it’s up to you. Investing starts at P50 for the bonds and local money market funds while investing in the global funds (Global Tech Feeder Fund and Global Consumer Fund) starts at P1,000.

What I did at first

The minimum investment amount was really what got me interested in GInvest.

So I took the test and was told my risk appetite is moderately aggressive. I initially invested in the fund recommended for my risk appetite.

I put P100 just to see how it goes. After the buy was confirmed, which took three days, I saw the P100 turned into P99~. I put in another P100 soon after.

After a few days, I had P200.83 in my fund.

Is GInvest safe?

If we’re talking security, yes. I’ve had no problems with my account; it’s never been mishandled by GCash in general. Even when I had trouble in the past (not related to GInvest), GCash was able to give me my money back.

If we’re talking about safety in terms of risk investment, well, here are my two cents:

The service is a way for us to try to make our money bigger. But it’s important to always remember that investing is a lot like gambling. You put your money where it might become bigger or smaller or stay the same.

Investing is a lot like gambling.

If you’re promised a guaranteed return with an amount that seems too good to be true, chances are it’s really too good to be true.

There’s also a well-known saying in the finance sphere that goes ‘The higher the risk, the higher the return.’ And I agree, to some extent. But the word that should be highlighted there is risk. If you don’t think your heart can take a risk, don’t do it or you’ll end up with lots of regrets. As they always say, invest only the amount you’re willing to part with because there’s a real chance that things may go south.

Invest the amount you’re willing to part with.

With that in mind (and thanks to local personal finance bloggers’ tips), I’ve devised a new plan to see how well this investment platform works. Here’s what I’ve been doing.

ATRAM Peso Money Market Fund review

I’ve read that government bonds are the way to go if you want a sure way to gain. Don’t expect the return to be big though.

There’s a fund in GCash for this under the ‘conservative’ category called ATRAM Peso Money Market Fund. The fund is described as one that ‘includes various Philippine treasury bonds.’ It’s a ‘fixed-income’ fund so you’ll always have your capital intact. (Outside GCash, you may also want to try the PAG-IBIG MP2 Fund for something similar.)

I placed P150 in this and it’s earned .12 so far.

ATRAM Philippine Equity Smart Index Fund review

I invested P250 in the ATRAM Philippine Equity Smart Index Fund (this is under the aggressive category a.k.a. the one for those willing to take bigger risks). The fund invests in only 30 companies, which include Globe, Ayala Corp, SM Investments, and Universal Robina.

As of this writing, my P250 has turned into P233.36. I remember it earning P5 a month or so ago though. I didn’t sell my funds then because I want to see where things go in a year’s time. But this is proof that you really can’t tell what may happen.

Some people claim to know just how the money market works, and good for them! But funds are dependent on so many things (the economy, political controversies, etc.).

How to redeem GInvest

You can easily redeem your investment by selling your funds. It may take a few days to be sent to your GCash account, though, and it depends on which fund you’re selling. Based on experience, it takes between three and five business days.

Now, will I continue using GInvest? Definitely! I have a lot to learn and am still observing things and doing research, but I’m still going to continue investing. If you’re curious, definitely check it out.

GInvest vs GSave

When I get more funds on my GCash account, I will split the amount between investing and saving in my GSave (CIMB) account to see which one yields better results.

The interest rate offered by digital banks is notably higher than traditional ones; CIMB has a standard interest rate of 2.5% (they have a promo of 4% this year) while traditional banks have an interest rate of .125% per annum for regular savings accounts.

Interested in GForest too? Learn more about that here.

This post was last updated on 30 March 2022.