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Beginner’s Guide to Investing

Beginner’s Guide to Investing

Investments can be quite intimidating. If you are on the lookout for the best investment in the Philippines, you might be considering to invest in the stock market, on a house and lot, on mutual funds, or start a small business. You may lose a great deal of money if you are not aware of the techniques to successful investing. Investment options can provide additional income, and all assets may be focused on comfortable living for the future.

Below is a general overview of where you can invest, as well as the best investment options in the Philippines for 2019.

Where to Invest Money in the Philippines?

Invest in yourself

Your knowledge and skills are considered your top assets aside from money. So it is just appropriate to begin investing for yourself and your future. You can learn new skills or go for higher education which can be related to your field of interest to achieve enough preparation for career advancement. Career advancement opens opportunities for better income.


As a beginner in investing, you may be cautious when taking large investment risks. This is the reason why low-risk investment channels such as bonds are ideal for beginners. The minimum investment for bonds is P5,000 to P10,000. Due to small risks, bonds may generate lower profits compared to other investments such as stocks. Yet investment through bonds is better compared to placing your money in a savings account. The interest rates are normally higher compared to deposit accounts and this is the reason why they gain higher returns.

Mutual Funds

Being able to invest in the stock market is perceived to be profitable. However, it can be challenging and overwhelming at the same time for beginners. This is why it’s recommended to place your money in a mutual fund. The minimum investment for mutual funds is P5,000. The money gets pooled for the funds of other investors, as professional fund managers put their investments in various forms like money market funds, stocks, and bonds. Mutual funds are regarded as one of the best investments in the Philippines for beginners.

Best Investment Options for 2019 and Beyond

Short-Term Goals

Short-term goals entail, for instance, savings for an upcoming event such as a baby’s arrival or a wedding. If you are in need of a large amount in less than three years, then it is safer to invest small.

Liquid assets are basically easy to buy and sell, like money market funds and time deposits, which allow your funds to grow through established maturity dates and interest rates. A house is regarded as an illiquid investment since it takes about two months or years to sell it.

Time deposits, on the other hand, are considered one of the best investments for beginners who are doubtful due to certain risks but still want to earn higher interest rates compared to a traditional savings account. Most savings accounts normally have interest rates lower than 1%, yet time deposits can earn up to more than 4%.

Money Market Funds

Money market funds are essential for conservative and beginner investors who wish to make higher revenues compared to time deposits. They are regarded as an excellent investment for capital preservations that last about one year or less. Funds are normally invested in risk-free short-term securities, government treasury bills, and corporate bonds.

Medium-Term Goals

In terms of medium-term goals, it is advisable to put your money in a mixture of safe and risky investments. Equity-based UITFs and balanced funds are considered the best investments especially if you are in need of money in four to nine years.

Nevertheless, despite the high risk of such funds, it lessens eventually since professional fund managers handle them. The responsibility of the fund manager is to select the holdings for equity and balanced funds, as its main objective is to increase returns while decreasing its risks.

PAG-IBIG or SSS Investment Program

The PAG-IBIG or SSS Investment Program can be considered as one of the easiest investments which the Social Security System (SSS) and PAG-IBIG Fund offers. The minimum monthly investment is P500 for the modified PAG-IBIG 2 Savings Program and P1,000 for SSS P.E.S.O. Fund. The Philippine government ensures both investment schemes and through this, you will have lesser chances of losing your savings.

Unit Investment Trust Fund (UITF)

A unit investment trust fund (UITF) refers to pooled investment funds that are almost the same as mutual funds. What sets it apart from other mutual funds is that commercial banks offer UITFs. Since most of the banks in the Philippines are under the supervision of the Bangko Sentral ng Pilipinas, you can guarantee that UITFs are scam-free and safe. The minimum investment is P1,000.

Variable Universal Life Insurance (VULI)

A variable universal life insurance (VULI) plan is an investment that doubles. It serves as a way to protect your loved ones against any financial obstacle in case something unexpected happens to you as that of a serious accident or death. The minimum investment monthly for VULI is P2,000. You can make the best investment in the Philippines due to its liquidity, since you can avail of your funds after several years, and this can be of great help during financial emergencies.

Balanced Funds

Balanced funds may include high-risk holdings and conservative bonds. They are considered the best investments for reasonably aggressive and conservative investors who possess the willingness to invest their money for three to five years. Funding for your child’s tuition and retirement, for instance, are considered long-term goals that you need to save for.

Long-Term Goals

Long-term goals entail investments that have a lifelong impact not only to yourself but also to your family. It includes property investments, investment on a memorial lot, and stocks.

Memorial Lot Investment

Purchasing a piece of traditional land is regarded as a wise investment, yet it can cost a lot especially if you are still a beginner. Cemeteries are considered the best options for those who are searching for something new to invest in. It is best to invest in yourself and your family so that they don’t have to worry about any costs associated with your interment and funeral in case of death. You may also take advantage of the increasing value of memorial lots annually in case someone purchases a lot from you. In this case, you can gain a large profit in the coming years.

Real Estate

Real estate is perceived to be one of the best long-term investments. Moreover, there is an up-and-down cycle or pattern that the real estate follows. The uptrend normally happens when people purchase real estate properties and the downtrend occurs when people sell their properties, thereby decreasing the prices. Aside from buy-and-hold strategies, real estate investments can be put to work through property rentals via online platforms like Airbnb.


When you decide to invest your money in the Philippine stock market, this means that you buy stocks of a legitimate company and become one of their shareholders or part-time owners. In order to open a stock trading account, you need at least P5,000. Stock investments are high-yielding in terms of earnings, especially when you buy stocks at a relatively low market price and eventually, sell them at a higher price. The stock market enables you to gain a larger return on investment compared to short-term or medium-term investments.

Early investments allow you to have greater chances for income growth. Done regularly, these would allow you to limit your overspending habits. It is highly recommended to do this as soon as you can when you still have the energy and means to do so, rather than wait for your elderly years when you barely have the money and resources for a retirement fund.

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