A Beginner's Guide To Good Investments In The Philippines

A Beginner's Guide To Good Investments In The PhilippinesA Beginner's Guide To Good Investments In The Philippines

No experience? No worries! We'll walk you through investing in the Philippines

Stocks, shares, bonds – you’ve probably heard of these terms thrown around when people talk about money. And maybe you’ve even thought about trying your hand at investing. But if you aren’t sure what are good investments in the Philippines, then let us guide you to help you decide which you should and shouldn’t invest in. You’ll be a pro before you know it!


What are good investments in the Philippines?

An investment is something that you buy or an asset which will hopefully gain value over time. It’s a great way to earn passive income – basically earning money while doing nothing! This lets you earn more beyond your salary’s allowances and work towards savings. Which is great news, since 93% of Filipino millennials have no savings plan!

To get started, you need a stockbroker like Philstocks. Through their platform, you can buy and sell your shares. From there, the world is at your feet! 


1. Mutual funds

good investments in the philippines

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A mutual fund, otherwise known as a Unit Investment Trust Fund (UTIF), is a good stock to invest into if you’re unsure which individual stocks you want to invest in. Mutual funds are registered with the Securities and Exchange Commission (SEC), which pools money from many investors to invest in securities like stocks, bonds and market shares. The best thing about mutual funds is that you don’t have to manage it since professional money advisors will allocate the funds. There are different types of mutual funds you can start with:

  • Index funds – the manager invests in stocks that follow major performing indexes, like the S&P 500 or the Dow Jones. Key here is to not beat the market, but follow the trend
  • Fixed income –  Focuses on investments that provide a fixed rate of return, generating interest income.
  • Balanced funds – Invests in both stocks and bonds to reduce the risk of exposure to an asset class. Also known as asset allocation fund.

You can get started with only Php5,000. Some of the mutual funds active in the Philippines are:


2. Bonds 

good investments in the philippines

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Bonds are essentially an investor lending money to a corporation or the government! In return, the borrower will pay interest back to the investor at scheduled times (annual and semi-annual), as well as return the initial money loaned at the agreed time, otherwise known as the maturity date.

If you’ve got a couple of minutes to spare and what to know more about what bonds are, check out this video!

This type of investment is a great example of good investments in the Philippines for beginners since it’s relatively low risk compared to the others. That’s because the profit you get is lower compared to riskier options. However, you can try to invest in bonds with higher yields, but that carries inherent risk. This usually happens if the company folds, in which case you get nothing in return. A lot of people go with bonds because of the higher interest rate compared to savings accounts.

You can get started from Php5,000 and can invest in either banks or corporate bonds.


3. Stocks

good investments in the philippines

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Ever wanted to own part of a company? Stocks give you the chance to do just that! When you purchase a stock, you invest in a company and become an owner. Of course, your ownership is measured by how many stocks you buy.

This is one of the riskier options because there is no guarantee you’ll make a profit. If the market is going well (or as they say, “bullish”), then the value of your stock may increase. But a small turn of events can devalue your portfolio as well. Generally, this is a better option if you plan to invest for the long-term. Whether stocks are good investments in the Philippines depends entirely on your strategy.

You can start with as little as Php5,000. Just be prepared to learn a lot to get the most out of this investment!

Some of the best blue-chip stocks in the Philippines include:

  • (AC) Ayala Corporation (Conglomerate)
  • (AP) Aboitiz Power Corporation (Power)
  • (AGI) Alliace Global Group Incorporated (Consumer)
  • (BDO) Bdo Unibank Incorporated (Bank)
  • (PCOR) Petron Corporation (Oil and Gas)
  • (BPI) Bank Of The Philippine Island (Bank)
  • (JFC) Jollibee Foods Corporation (Consumer)


4. Microlending

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For as little as Php1,250, you can earn through lending to other people or corporations in need of quick cash. Microlending is different because it leaves the banks out of the equation. An online platform allows lenders and borrowers to meet. It’s an easy way for beginner investors to start earning through interest rates. The lending platform will manage your investment and allocate it to borrowers accordingly. The risk is mainly on the lending platform if the borrowers don’t pay back their loan.

There are many platforms in the Philippines you can sign up on.


5. Crowdfunding

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You may have come across the term of crowdfunding. It’s basically a way to fund startups. And through your initial investment, you earn returns proportionate to the principal you gave. This can be one of the good investments in the Philippines if you know an industry well and see a new player that will disrupt the market, like Grab or Airbnb. And you can get started with only Php5,000.

Some of the best and well-established crowdfunding platforms include:


6. ETFs

good investments in the philippines

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Exchange traded funds (ETFs) are similar to mutual funds. Both offer investors a diversified portfolio, since your investment will be allocated to different shares and stock by a money manager. The only difference is the way the value of an ETF and a mutual fund is calculated. For more on that, see our guide on ETFs here.

Like mutual funds, the risk is lower because your investment is spread across many different shares. This means if one particular stock does poorly, your money is invested in many other securities and doesn’t hurt your portfolio as bad. Overall, ETFs are good investments in the Philippines.

Currently, only one ETF is available in the Philippines. The First Metro Philippine Equity Exchange Traded Fund (FMETF). BPI and BDO have expressed interest in establishing their own ETFs. But in the meantime, you can purchase stocks from FMETF through any stock trading platform.



You might be too young to outright own your own property. But with a real estate investment trust (REIT), you can stake your claim! Well, at least part of it. 

REITs are like a mutual fund, but specifically for investing in properties. You get income through the leasing, purchasing or selling of these properties. Which is great, since properties generally gain value over time! For a more detailed list of what REITs are, check our guide here!


8. Savings account

good investments in the philippines

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Perhaps the safest bet for any novice investor! It’s age-old wisdom to keep some money for a rainy day. And placing it in a savings account means you’ll earn money for doing absolutely nothing, with practically zero risk! We’ve got a list of what to look for in a savings account and which are the best accounts to open in the Philippines.

The interest rate will be a lot lower compared to bonds, but you guarantee earning some interest over time.


9. Variable Universal Life Insurance

This is more of an investment in yourself than anything. This type of insurance offers a death benefit and also a chance to invest into securities. A portion of the premium you pay will go towards an investment feature of your choice. Beneficiaries will get a payout in the case of your unexpected death. It’s a flexible choice for new investors and young professionals since you get the best of both worlds of insurance and investing!

There are a lot of plans you can go for, so it’s worth checking out the different rates with a financial planner. Some of the most well-known companies include:


10. Cryptocurrency

good investments in the philippines

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The hottest technology that’s changed the investment world in the past decade. You’ll likely have heard of Bitcoin and its dramatic rise and fall. It was unchartered territory 10 years ago, but there are now over 1,600 different types of cryptocurrencies to invest in.

Cryptocurrency is protected by blockchain technology which makes it extremely secure from hacking attempts. Investing in cryptocurrency gives you profit simply because the value fluctuates so much. Treat it like investing in stocks, but with much higher risk.

To get started, you need a cryptocurrency platform like coins.ph.


With these ideas for good investments in the Philippines, anybody can get started! Share with a friend if anyone you know wants to get rich!

Read more articles below:

Stocks And Bonds: Two Adorable Babies Explain What They Are And How They’re Different

Bonds Explained: Learn About The Basics Of Investing In Bonds

What Is An ETF? Should I Add It To My Portfolio?

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Written by

Vinnie Wong