Admit it or not, most Filipinos depend their finances on their 8 to 5 jobs. However, one unusual route to take is investing money. This road allows you to give a portion of your money to grow over time or buy an asset and eventually sell it at the best time when prices are higher.
As per the report of the Bangko Sentral ng Pilipinas, only 25% of the Filipino population takes this road. Here’s a quick guide on how your finance can flourish through the best investments in the Philippines.
Read more: How to Save Money with these Budget Savings Tips
GInvest
Are you a beginner who has only learned about the best investments in the Philippines? GInvest allows you to grow your money with the lowest minimum amount of Php 50. This platform allows you to invest in the following:
- ALFM Global Multi-Asset Income Fund
- ATRAM Peso Money Market Fund
- ATRAM Total Return Peso Bond Fund
- ATRAM Philippine Equity Smart Index Fund
- Philippine Stock Index Fund
- ATRAM Global Technology Feeder Fund
- ATRAM Global Consumer Trends Feeder Funds
- ATRAM Global Infra Equity Feeder Fund
- ATRAM Global Health Care Fund
- ATRAM Global Equity Opportunity Feeder Fund
- ATRAM Philippine Sustainable Development and Growth Fund
All you need is a fully verified GCash account to be able to enter this investment world. Just make sure to have a glimpse of the ins and outs of this investing program prior to putting your money in this basket.
Pag-IBIG MP2
As per a BSP survey finding in 2022, the most common types of investments for Filipinos are SSS at 88% and Pag-IBIG fund at 52%. This is not a surprising statistic as we all know that these government agencies are active in terms of serving the Filipino people, especially retirees.
The MP2 allows you to earn high interest rates (as much as 6.5%) for as low as investing Php 500. The good thing about this is that the earnings are guaranteed and tax-free. This is the best investments in the Philippines for low-risk investors.
Real Estate Investment Trust (REITs)
Investing in real estate requires a huge capital but if you want to enter this investment space then REIT is the way for you. You can buy REIT shares when you have spare money to shell out. This mode allows you to receive dividends every quarter at an initial investment of Php 5,000.
Another good thing about REITs is that it enables you to manage various real estate assets across the region without having to keep track of each asset individually.
Stocks
Stocks may be intimidating for many people, especially who has not touched base with this before. But just like any business venture, you can learn stocks at any time if you put your heart into it. Do your research, enroll in free short courses, familiarize yourself with the terminologies, and more. Eventually, this will allow you to buy shares of companies which will trigger your money to grow exponentially.
Before venturing here, ensure that you know your risk profile. Are you more of a risk-taker or not? Knowing this will enable you to strategize your approach – what stocks to buy, how much money you’ll put down, and more.
Bonds
If you’re not the type of person who loves taking risk, then bonds can be your go-to investment. This is a less volatile space and will allow you to receive assured profit. Basically, a bond permits a company to borrow money from you which they will use in their business ventures. Just like any debt, the company will pay you the interest rates in return. This is regardless whether the company has experienced gains or losses.
Keep in mind that since this is assured money, the returns will not be as high as investing in stocks.
Time Deposit
Another low-risk investments in the Philippines that you can enter is time deposit. All you have to do is open your bank account, get your certificate of deposit, and just wait until the maturity time comes. The catch is that you cannot withdraw the money until the maturity date so there is less liquidity on this option. However, if there is really an emergency that will force you to pull out the money, you would have to pay for the penalty fee and withholding tax.
Mutual Funds
Mutual funds involved pooling money from various investors which is used as money for the different investment mixes – whether it’s stocks or bonds. The important aspect here is to hire a competent fund manager that will effectively manage your funds by placing it in the right baskets.
Don’t be too intimidated with the premise of the investment because you can join this effort with as low as Php 5,000. You also have the option to put in money when you have extra money along the way.
Final Thoughts
Investing can be confusing and scary at first. However, you just have to be firm with your financial goal and amount of risk that you are willing to take. This will be your guiding thoughts as you aim to grow your money.
