22 Best Investments in the Philippines for Beginners in 2024

Have you ever received your paycheck and wondered how you could make your hard-earned money grow?

Many Filipinos experience this moment of realization, especially when thinking about future financial security and major life goals. Investing isn’t just for the wealthy; it’s a practical approach for anyone looking to build wealth over time.

This guide is designed to help beginners navigate the diverse investment landscape in the Philippines, offering insights on why investing is beneficial and how to start making informed choices that could shape a more prosperous future.

Why Consider Investing as a Filipino?

Investing is a smart move for Filipinos looking to stretch their pesos further and secure a more comfortable future.

It’s about making your money work for you, whether it’s saving for a dream home, preparing for retirement, or ensuring your family’s financial stability in the years to come.

With a variety of investment options now accessible, anyone can start small and gradually build their portfolio, taking steps towards financial independence and resilience against inflation.

What Are the Different Investment Options Available for a First-Time Filipino Investor?

UITFs, stocks, and mutual funds are the most common investment vehicles that we’ve found beginner Filipino investors should consider trying first. For a more in-depth set of choices, check out the list we’ve prepared for you below:

1. VUL (Variable Unit-Linked Life Insurance)

VUL combines life insurance and investment into a single product. It is an attractive option for those who do not yet have life insurance and wish to make an investment simultaneously.

The investment portion is handled by professional fund managers, which can be an advantage for first-time investors who might not be familiar with managing investments themselves.

Minimum Amount to Invest:

Minimum monthly investments typically range from ₱500 to ₱3,000 depending on the provider and the specific policy details.

2. SSS WISP Plus

The SSS WISP Plus is a voluntary provident fund offered by the Social Security System to its members, including overseas Filipino workers (OFWs). It aims to provide a savings vehicle that offers higher returns compared to traditional savings accounts or time deposits.

Minimum Amount to Invest:

The starting investment is ₱500, making it one of the most accessible options for government-backed savings.

3. GFunds

GFunds serves as an investment marketplace accessible through the popular GCash app, providing a platform for users to invest in funds managed by prominent institutions like ATRAM and BPI Investments, Inc.

Minimum Amount to Invest:

You can start investing with GFunds for as low as ₱50, ideal for those who want to start with a small amount.

4. Index Funds

Index funds are designed to track the performance of a specific benchmark index, such as the Philippine Stock Exchange Index (PSEI) or international indices like the NASDAQ 100 or S&P 500.

This means your investment mirrors the performance of the top companies included in these indices, providing broad market exposure and diversification.

Minimum Amount to Invest:

The minimum investment can vary widely depending on the fund provider, but it generally starts around ₱1,000 for most basic index funds available through major platforms.

5. Bonds

Bonds are essentially loans investors make to corporations or governments, in return for periodic interest payments plus the principal amount at maturity. They are considered a safer investment compared to stocks, offering more stability and less volatility.

Minimum Amount to Invest:

Starting investments for bonds can be as low as ₱5,000, suitable for those looking for lower-risk investments.

6. Mutual Funds

Mutual funds offer diversification and professional management, making them ideal for beginners who might not have the expertise or time to manage individual investments. They provide an opportunity to invest in a broader range of assets, which can help mitigate risks and improve potential returns.

Minimum Amount to Invest:

Generally, you can start investing in mutual funds with a minimum of ₱5,000.

7. UITFs (Unit Investment Trust Funds)

UITFs are investment products offered primarily by banks that pool money from various investors to invest in a diverse portfolio of assets like stocks, bonds, and government securities. They are similar to mutual funds but are managed by banks and regulated by the Bangko Sentral ng Pilipinas (BSP).

Minimum Amount to Invest:

Minimum investments for UITFs typically range from ₱5,000 to ₱10,000 depending on the bank offering them.

8. Stocks

Investing in stocks involves purchasing shares of publicly listed companies, making you a part-owner of these companies. Stocks are traded on the Philippine Stock Exchange (PSE) and offer the potential for high returns through capital appreciation and dividends.

Minimum Amount to Invest:

The minimum amount required to start investing in stocks is usually at least ₱5,000, which allows you to buy shares directly on the Philippine Stock Exchange.

9. GInvest

GInvest is an investment feature within the GCash app, which is a popular mobile wallet in the Philippines. It allows users to invest in a variety of financial products including fixed-income funds, bonds, stocks, and mutual funds.

It is designed to be user-friendly, making it an excellent choice for both beginners and experienced investors. The platform allows users to easily fund their investments directly from their GCash accounts, providing a seamless integration with their everyday financial tool.

Minimum Amount to Invest:

This platform allows investments starting at just ₱50, making it extremely accessible for beginners.

10. Retail Treasury Bonds (RTB)

Retail Treasury Bonds (RTBs) are government-issued debt securities designed to raise funds for national projects. They are considered a safe investment because they are backed by the government.

The minimum investment amount for RTBs is relatively low, making them accessible to a broad range of investors, not just the wealthy. This is an ideal starting point for first-time investors looking to diversify their portfolio with low-risk assets.

Minimum Amount to Invest:

Typically, the minimum investment for RTBs is around ₱5,000, ideal for beginners looking for secure government-backed securities.

11. REITs (Real Estate Investment Trust)

REITs allow individuals to invest in large-scale, income-generating real estate properties. This type of investment provides dividends derived from rental income, alongside the potential for capital appreciation.

While generally considered low-risk, REITs can still be affected by fluctuations in interest rates and changes in the real estate market.

Minimum Amount to Invest:

You can start investing in REITs with amounts as low as ₱1,000 to ₱5,000, depending on the REIT and the trading platform.

12. Pag-ibig MP2

Pag-ibig MP2 is a voluntary savings program offered by the Home Development Mutual Fund (Pag-IBIG Fund). It’s designed to provide Pag-IBIG members with a vehicle for saving with higher returns compared to traditional savings accounts.

The program allows for a minimum investment of ₱500 per remittance, making it highly accessible. Members can enroll and manage their investments online through Virtual Pag-IBIG.

Minimum Amount to Invest:

This program allows investments starting at just ₱500, offering higher returns than regular savings.

13. Time Deposit

Time deposits are a type of savings account where funds are locked in for a specific period, offering higher interest rates compared to regular savings accounts. They are considered one of the safest investment options.

This investment is ideal for those who want a low-risk place to park their money and earn steady interest. However, withdrawing funds before maturity can result in penalties, such as loss of accrued interest.

Minimum Amount to Invest:

The minimum amount for time deposits typically starts at around ₱1,000, providing a safe and fixed return on your investment.

14. Treasury Bills (T-Bills)

Treasury bills are short-term government securities designed to meet temporary funding needs of the government. They are sold at a discount and mature at face value, providing investors with the difference as their return.

T-Bills are considered virtually risk-free since they are backed by the Philippine government. They are a good choice for conservative investors looking for stability and liquidity in their investments.

Minimum Amount to Invest:

The starting investment for T-Bills is usually around ₱50,000, making it suitable for those with a larger amount to invest initially.

15. ETF (Exchange-Traded Funds)

ETFs are investment funds traded on stock exchanges, much like stocks. They hold assets such as stocks, commodities, or bonds and generally operate with an arbitrage mechanism designed to keep the trading close to its net asset value, though deviations can occasionally occur.

ETFs are praised for their low costs, diversification, and liquidity. They are generally considered medium-risk investments due to their diversified nature, though risk levels can vary significantly between different ETFs, depending on their underlying assets.

Minimum Amount to Invest:

ETFs generally require a minimum investment of about ₱1,000, depending on the specific ETF and trading platform.

16. PERA (Personal Equity and Retirement Account)

PERA is a voluntary retirement savings scheme established by the Philippine government under Republic Act 9505 to encourage Filipinos to save for retirement, providing tax benefits and more control over investment choices.

The account offers tax relief for contributions and the flexibility to choose fund managers, which isn’t available with traditional pension funds like SSS or GSIS. The potential for growth depends on the chosen investments and market conditions.

Minimum Amount to Invest:

Starting investments for PERA can be as low as ₱1,000, depending on the administrator.

17. Online Business

Starting an online business is an increasingly popular investment choice due to its lower overhead costs and the flexibility to operate virtually anywhere with internet access.

Initial investments can be as low as ₱1,000, depending on the business model. The income potential is virtually unlimited, depending on the scale and success of the business.

Minimum Amount to Invest:

Starting an online business can vary widely in cost, starting as low as ₱1,000 up to much larger amounts, depending on the nature of the business.

18. SSS PESO Fund

The SSS PESO Fund (Personal Equity and Savings Option) is a voluntary savings program that provides SSS members with an opportunity to earn higher returns on their savings for retirement, medical emergencies, and general savings needs.

The fund is government-backed, adding an extra layer of security for the investor’s savings. It is particularly designed for long-term savings, with the funds being locked in until specific conditions are met, such as reaching retirement age.

Minimum Amount to Invest:

The minimum monthly contribution for this fund is ₱1,000.

19. Precious Metals

Investing in precious metals like gold and silver is a traditional method for preserving and enhancing wealth. These metals are often seen as a safe haven during economic uncertainties and can be a part of a diversified investment portfolio.

Minimum Amount to Invest:

Investing in precious metals like gold or silver typically starts at around ₱5,000, depending on market prices and the form (coins, bars, etc.)

20. Real Estate

Real estate investment involves purchasing property to generate income through renting, leasing, or price appreciation. This type of investment is known for its potential to provide steady passive income and long-term capital growth.

Real estate is generally considered a stable investment with moderate risk. It can offer consistent rental yields and appreciate in value over time. However, it also requires management and can be affected by market fluctuations and property-specific risks.

Minimum Amount to Invest:

The minimum investment for real estate is quite variable and generally requires significant capital, often in the millions of pesos, especially if purchasing property directly.

21. Forex (Foreign Exchange)

Forex trading involves buying and selling currencies on the global financial market. It is the largest and most liquid market in the world, operating 24/7.

Forex offers high liquidity and the potential for rapid returns through leveraged trading. However, it is also highly volatile and carries a substantial risk of loss, influenced by global economic conditions, political events, and market sentiment.

Minimum Amount to Invest:

You can start trading Forex with as little as ₱1,000, but this market is highly volatile and generally recommended for more experienced investors.

22. Investing in Yourself

Investing in yourself is perhaps one of the most valuable investments you can make, offering profound returns in personal and professional growth, well-being, and financial stability.

Investing in your career by enhancing your skills and qualifications can lead to better job opportunities, higher salaries, and more job satisfaction. This can involve picking up new skills relevant to your field, seeking mentorship, and networking to expand your professional connections. Such investments can be made through various online courses, seminars, and workshops, many of which are available at little to no cost.

Minimum Amount to Invest:

Costs here can range from zero (self-taught skills) to significant amounts if pursuing formal education or professional development courses.

Tips for Filipinos Investing for the First Time

If you’ve found your way here, it looks like you may have chosen at least one investment option as a beginner. Below are five key tips to keep in mind to help build your confidence when investing:

Identify Your Financial Goals

Before anything else, clarify what you’re aiming to achieve with your investments. Whether it’s securing your retirement, buying a new home, or funding your children’s education, having clear goals will guide your investment decisions and strategies. Think of it as setting your destination before you start your journey.

Set Up a Budget

Know how much you can invest without impacting your daily financial needs. Start with surplus funds that you won’t need immediately. This is crucial to ensure that you won’t need to withdraw your investment prematurely, which can lead to losses or penalties.

Educate Yourself About Investments

Take the time to learn about various investment options like stocks, bonds, and mutual funds. Understanding the basics will empower you to make informed decisions. Utilize resources online or read up on investment books to build a solid foundation of knowledge.

Diversify Your Portfolio

Don’t concentrate all your funds in one type of investment. Diversifying across different asset classes can reduce risk and improve potential returns. If one investment underperforms, others in your portfolio may offset the losses, balancing your investment health.

Seek Professional Advice

If you’re unsure about making investment decisions on your own, consider consulting with a financial advisor. They can provide personalized advice suited to your financial situation and help you navigate complex investment choices.

Conclusion

By following these tips, you’ll be better prepared to start your investment journey in the Philippines.

Here at Juan Remote Work, we make sure that you’re properly educated, not just in working, but also in investing.

Check our blog if you’re curious to read more from us—where we cover topics such as ‘Best Complementary Skills to Pair Up with SEO‘, ‘Digital Marketing Projects for Beginners to Experts Right Now‘, and more.

So remember, everyone starts somewhere, and taking the time to learn and plan can lead to successful investment experiences.

We hope that you’ve learned something from this article, and if you have any questions, don’t hesitate to comment down below.

Good luck!