Where to Invest Money in the Philippines? Nine Options That Are Not MLM!
One of our goals is to save money.
Ever since we are young, we have always dreamt of finishing our studies, working in our dream job and eventually saving money with the goal of investing it into something worthwhile. So after saving, the next question is, "Where to invest money in the Philippines?"
As any grown adults would suggest any young people, working until you’re old and gray won’t make you rich. Saving your money in your savings account won’t make it bigger as well. Although investing may sound a bit risky especially if you’ve given up a lot of things just to save up, it’s ideal to know the best ways to make the most out of your hard work.
If you’re still quite hesitant with investing right away with stocks and/or bonds, you can start with time deposits wherein you can safely deposit your earned money in a chosen bank account and obtain higher interest rate compared to normal deposit to a savings account.
Investment through Mutual Funds
One of the forms of investment that requires little knowledge, but can still bring profit to your save money is mutual funds. With mutual funds, you do not need to monitor your investment because a fund manager will do that for you. That person will also be in-charge of putting your money into stocks, bonds and other financial related services. Usually, mutual fund companies are responsible in handling several mutual funds of several clients.
Participating in Treasury Bills
Where to Invest Money in the Philippines, You Say? At the Government!
Treasury Bills are something you can purchased from banks in the Philippines. These bills are government securities that will you gain more profit compared to savings or time deposits. It is based on three (3) modes based on the universal practice all over the world; 91-day; 182-day; and 364-day.
Retail Treasury Bond (RTB)
Ideal for individual investors and those in retail industry, the RTB is also part of government’s program that lets the Filipino saving grow passively. Through RTB, an individual or firm will need not to fear for any dangers an investment can bring for it ensure a risk-free and high-performing investment. Starting with small amount (PHP 5,000), one can multiply their earnings in over a year or so.
Unit Investment Trust Fund (UITF)
Similar to the perks offered by Mutual Funds, the only difference about UITF is that it is directly offered by banks rather by mutual fund companies and funded by several investors. While mutual fund tends to purchase ownerships shares of a company, UITF in the other hand only buys units of participation in a fund.
Popular amongst those who’d like to be adventurous and take the slightly risky side of investing, stock market allows an individual to invest on potential corporations. Individuals or organizations investing in stock market should have broad knowledge on how the industry works. Unlike with UITF or mutual fund where someone will be assigned to monitor your investments, with stock market, you’ll have to know the in and out of the field, enough to know when to play it safe with your money or when to go all in.
You’ve probably heard some of your friends saying how insurance is vital in your life and for your loved ones. It definitely is. Through insurance, you’ll be able to invest into something that you can use in the near future (e.g. health and life insurance). As elderly would always like to advice, it is best to be prepared than to become a one-day millionaire with nothing to get money to during emergency.
Variable Unit-Linked (VUL) Insurance
Considered both as an insurance and investment, VUL allows an individual to use his or her saved up money on insurance and investment. An individual may choose from the various types of investments such as balanced fund, bond and equity fund.
This is ideal for young adults still unsure on where they should put their saved money, for Overseas Filipino Workers (OFWs) who want to make sure that before they leave their work, they have secured money for their loved ones’ future. Requiring at PHP 2,100 monthly, this a cost-effective way to start investing your money and letting it grow on its own.
Ideal form of investment for beginners, corporate bonds give opportunities to starters by earning certain amount of profit over specific period of time. It also offers rates than are considered higher than those offered from banks and government securities. Although it may have been reviewed risky as well because there’s likely a chance that investors may not be able to received what they’ve invested in case a firm closes up.
Experts recommend that before getting lured with the perks of investing your money into something you’ve heard or offered, you have to do thorough research and talk to those who have experienced it first-hand because they would be able to give you the best advices and techniques to make your investment as fruitful as possible.