Where to Invest Money in the Philippines

where to invest shows in a blackboard

Unfortunately, Filipinos are educated in school believing there are only two ways to earn money – either paid because you’re employed, or you make money from running your own business. Investing is a third and less known way to earn Money. This means investing your Money so it earns more money over time by making interest. Another investment is to buy an asset and sell it later for a higher price when the asset’s value has increased. As the cliché goes, Money doesn’t grow on trees. But your Money can succeed if you know how and where to invest in the Philippines, even if you’re a beginner.

What Do You Mean By “Investment”?

In reality, “investment” can be loosely used for anything purchased. A newly bought car, buying quality cosmetics, a mobile phone, and a new house can all be considered “investments” because each was accepted for a critical need and use. The real meaning of investment is purchasing an item or asset that can generate income or be sold at an appreciative price later. Thus, the goal of any investment vehicle is to grow money over time.

The best example is to use the house purchase mentioned above. Buying and living in a house is not an investment because it doesn’t generate Money. However, investing in real estate properties by purchasing a home or piece of land to rent out becomes an investment because it creates Money in the future.

In short, for something to be genuinely an investment, there has to be what is called a return on investment (ROI). This performance measure assesses how efficient and profitable an investment is.

Types of Investments      

Before asking how and where to invest in the Philippines, you need to know the three types of investments and their instruments.


This type of investment is often called low-risk but with understandably lower rates of return. Most people like this type of investment because of its flexibility when it is necessary to withdraw Money. This short-term investment includes time deposits, savings accounts, and money market funds.


If you’re considering investments that target between 4 and 10 years of maturity, equity funds or unit investment trust funds (UITF) are the best for investors with moderate financial targets. They are still affordable but with higher yield potential.


As the term implies, any monetary reward will take a long time. People who target long-term investments always plan to reap the benefits of a retirement plan.  

How and Where to Invest Philippines?

Ownership Investments

This investment works by investing in a company’s capital. The acquisition is computed at the end of each year if it has earned profit or interest. Ownership investments allow you to contribute to a company and make profits as the company grows over time. This is one of the most profitable investments but also the riskiest. Types of ownership investments are:

  • Stocks – This investment makes you a part owner of a company, giving you the right to a portion of the company’s income.
  • Business – This gives you part ownership of a created product or service that is sold to others. You earn from the potential returns from sales.
  • Real estate – If you want to know how to buy assets in the Philippines, buying from real estates, such as a piece of land or property, you then use it to earn money by renting it out. You can also wait for its value to increase and resell it at a profit.
  • Precious metals and collectibles – This investment includes gold, paintings, and signed limited-edition merchandise. Collectors assume that the values of these items will increase over time.

Lending Investments

This type of investment is a modified type of ownership investment. With lending investments, you are lending your money to a company with interest and expecting returns, no matter how modest. This is considered a low-risk investment because you can return your cash anytime. Examples are:

  • Bonds – When a bond is bought, you are loaning money to a corporation, and you get paid back with a fixed interest rate.
  • Certificate of deposits – Issued by banks as proof that you agreed to loan them Money; CDs are similar to savings accounts except that you must leave your Money with the bank for a certain amount of time.
  • Savings accounts – The most popular and feasible investment, even for beginners. However, unlike other assets, the returns from monthly interest are meager.

Related: The Best Commercial Banks in the Philippines

Cash Equivalents

These are investment assets that are the total cash value on hand, and the items are equivalent to cash. These are short-term investments and are low-risk. For example:

  • Treasury bills – T-Bills are government-issued and protected for a minimum investment of P50,000.
  • Commercial papers – Issued by corporations (registered with SEC) for short-term funding of obligations like payrolls and inventory purchases.

Where to Invest Philippines For Beginners?

Is there such a thing as the best investment for beginners? Your choice of where to invest in the Philippines will depend on your short-, medium-, or long-term goals.


These are two of the Philippines’ most substantial and legit investments because many Filipinos are SSS and Pag-IBIG members. Protected as government investments with plenty of benefits, they are also affordable. You can start for as low as P500 for MP2 and P1,000 for PESO. Earnings are all tax-free and guaranteed.


As explained earlier, this investment is risky but quite profitable. The average first investment is around P5,000. The usual waiting time for your Money to mature is at least five years.

Related: A Step-by-Step Guide On How To Create Your First IPON Challenge


Bonds carry less risk because they are debt obligations issued by treasuries and companies for as low as a starting P8,000. Regardless of the company’s gains or losses, you are paid a set amount over time.

Mutual funds

For a starting P5,000, your funds are pooled with other investors and are re-invested in other assets like bonds or stocks. This investment is ideal for beginners because a professional fund manager makes all the investment decisions.

VUL insurance

Now considered one of the best investments in the Philippines, VUL combines investment and life insurance. Professional fund managers handle all Money involved and are a good choice since it is also a life insurance policy that covers accidents, hospitalizations/sickness, and death, all for a monthly fee of P1,500 to P3,000.


Between P5,000 and P10,000, UITFs are safely handled by banks, all regulated by the BSP (Bangko Sentral ng Pilipinas). They act like mutual funds but are much less risky.


For a low starting of P50, GCash’s investment arm, GInvest, puts your Money into several partner product providers. The risk factor depends on the product investment. This investment is partnered with ATRAM. Assets under GInvest include:

For conservative investors – ATRAM Peso Money Market Fund and ATRAM Total Return Peso Bond Fund.

For aggressive investors – ATRAM Philippine Equity Smart Index Fund, ATRAM Global Consumer Trends Feeder Fund, and ATRAM Global Technology Feeder Fund.   


Investing in the Philippine economy can bring great rewards for financial growth and satisfaction to those who know how to navigate it. With the right strategy and research, you can maximize investment opportunities in targeted areas such as stocks, mutual funds, real estate, and other commodities. Have a plan, set goals, and continuously monitor your investments regularly; this is critical to success. Although there are inherent risks in investing, you can maximize returns while minimizing risks with proper planning and preparation. Ultimately, if you take the time to understand where to invest philippines, you’ll be better prepared to turn any potential gains into reality!

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