UPDATED List of Best Investments in the Philippines 2024:
We are fortunate to have a wide selection of investment options to grow our money. But honestly, with all these choices, what do you think are the Best Investments in the Philippines for 2024?
You’ve probably wondered where to invest in the Philippines this year. Well, once you search the web, you will be bombarded with too many investment options, blog posts, videos, reviews, or ads that can make you pause, be overwhelmed, and be confused on where to start – not to mention, the financial jargon that comes along.
What are the Best Investments in the Philippines 2024?
1. Reminders! Please read before scrolling down:
- Please take everything I’ve written here with a grain of salt. This is just a guide to make studying easier. Still, practice conducting thorough due diligence before delving into any investment vehicle.
- Bookmark this page for easy access.
- I am open to suggestions if you want me to add more rows or columns. If you think some info needs updating, don’t hesitate to message me through the contact me.
2. What are the Best Investments in the Philippines 2024? (FREE RESOURCES):
Here are some comprehensive articles about the best investments in the Philippines:
- Cryptocurrency: How To Invest In Cryptocurrency Philippines: All You Need To Know
- Condo Investing: 10 Helpful Condo Buying Tips Philippines
- Dollar Investments: Best Dollar Investments in the Philippines
- Pag-IBIG MP2: What is Pag IBIG MP2? Can you really earn PASSIVE INCOME?
- Pag-ibig MP2: 4 TIPs to make the most out of Pag-ibig MP2
- WISP Plus by SSS: How to Invest in WISP Plus SSS: A Complete Guide
- Stocks –How to Invest in Stocks for Beginners- FAQs
- Index Funds– A Beginner’s Guide To Investing in INDEX FUNDS
- Mutual Funds– How to Invest in Mutual Funds for Beginners
- UITF– How to Invest in UITF Philippines
- Forex Trading –Forex Trading: 9 Tips Every Beginner Should Know
- PERA–What is PERA and why you should get one now
- Bonds– How to Invest in Bonds for Beginners
- TOP 10 THINGS TO DO BEFORE INVESTING
- Real Estate Investments Trusts (REITs)– How to Invest in REITs in the Philippines
Matrix of the Best Investments in the Philippines 2024
INVESTMENT VEHICLE | SHORT DESCRIPTION | RETURNS | MINIMUM INVESTMENT | MAXIMUM INVESTMENT | RISK LEVEL | INVESTMENT HORIZON (expected time to remain invested) | Where to invest | Tax Implications | Learn more about it here | References | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Savings Account | Typical bank account | 0% to 1.75% per annum;Digital banks offer 4% to 4.1% for a limited period. | 0 to P20k, depends on the bank | No limit | Low risk | Anytime; best for Emergency Funds | Banks | subject to 20% withholding tax | Learn more: https://thethriftypinay.com/2018/07/10/the-importance-of-bank-accounts/ | https://www.imoney.ph/savings-account | |
| Time Deposit | Similar to a bank account but has a specified maturity date where you can add funds or roll over | 0.5% to 1.25% per annum | P1k to P10k, depending on the bank | No limit | Low risk | choose between 30, 60, 90 to 180 days. Others offer 1yr or 5yrs | Banks | subject to 20% withholding tax if held for less than 5 years | Time Deposit Calculator – https://drive.google.com/file/d/1YJfsS25ssW68hyn8yC-lZZkOeidVt-ew/view?usp=sharing | https://www.imoney.ph/time-deposit | |
| Equity Funds | Also known as stock fund, invests in selected stocks and equity securities; considered to have the highest risk but with the potential for the biggest returns in the long term (5 years or more) since it invests primarily in stocks and equities. | Highest 5.72%, lowest negative % (as of 2019) | P10k and above depending on the fund | No limit | High risk | Long term (5 yrs) | Banks, Mutual Fund companies, stock brokerage firms | tax already subtracted, unless declared by issuing company | UITF: https://thethriftypinay.com/2018/06/23/uitfs-uitfs-vs-mutual-funds/; Mutual Fund https://thethriftypinay.com/2019/11/29/how-to-invest-in-mutual-funds-for-beginners/ | https://www.pinoymoneytalk.com/best-mutual-funds-philippines/#What_are_EQUITY_or_STOCK_Mutual_Funds | |
| Balanced Funds | typical portfolio of stocks, bonds, and/or money market funds; deemed as the fund type of choice for investors with an appetite for moderate risk. | Highest 7.62% lowest negative % (as of 2019) | P10k and above depending on the fund | No limit | Medium risk | Mid to Long term (3 to 5 yrs) | Banks, Mutual Fund companies, stock brokerage firms | tax already subtracted, unless declared by issuing company | UITF: https://thethriftypinay.com/2018/06/23/uitfs-uitfs-vs-mutual-funds/; Mutual Fund https://thethriftypinay.com/2019/11/29/how-to-invest-in-mutual-funds-for-beginners/ | https://www.pinoymoneytalk.com/best-mutual-funds-philippines/#What_are_EQUITY_or_STOCK_Mutual_Funds | |
| Bond Funds | a typical mix of fixed-income investments like treasury notes, government securities, and commercial papers. | Highest 11.54%, lowest 2.27 % (as of 2019) | P10k and above depending on the fund | No limit | Medium risk | Short to Mid term (1 to 3 yrs) | Banks, Mutual Fund companies, stock brokerage firms | tax already subtracted, unless declared by issuing company | UITF: https://thethriftypinay.com/2018/06/23/uitfs-uitfs-vs-mutual-funds/; Mutual Fund https://thethriftypinay.com/2019/11/29/how-to-invest-in-mutual-funds-for-beginners/ | https://www.pinoymoneytalk.com/best-mutual-funds-philippines/#What_are_EQUITY_or_STOCK_Mutual_Funds | |
| Money Market Funds | invests primarily in short-term debt securities like time deposits and corporate bonds; deemed to be the safest type but also generates the least amount of return for your money. | Highest 6.29%, lowest 3.28 % (as of 2019) | P10k and above depending on the fund | No limit | Low risk | Short term (1yr or less) | Banks, Mutual Fund companies, stock brokerage firms | tax already subtracted, unless declared by issuing company | UITF: https://thethriftypinay.com/2018/06/23/uitfs-uitfs-vs-mutual-funds/; Mutual Fund https://thethriftypinay.com/2019/11/29/how-to-invest-in-mutual-funds-for-beginners/ | https://www.pinoymoneytalk.com/best-mutual-funds-philippines/#What_are_EQUITY_or_STOCK_Mutual_Fundshttps://www.pinoymoneytalk.com/best-mutual-funds-philippines/#What_are_EQUITY_or_STOCK_Mutual_Fund | |
| Stocks | You buy Stocks to have shares of ownership in a corp | depends on your chosen stocks; can go as high as 100% or as low as a negative % | P5k to open an account and start investing, but P8k is recommended to cap total fees | No limit | High | Depends on your strategy, if you are a day-to-day trader or investor for long term | stock broker | dividends are subject to 10% withholding tax; stock sales are subject to transaction cost | Learn more: https://thethriftypinay.com/2019/11/16/how-to-invest-in-stocks-for-beginners-faqs/ | ||
| Index Funds | a fund where you are automatically invested in the Philippines’ TOP 30 Companies whose shares are traded in the Philippine Stock Exchange (PSE); Its main goal is to “mirror” the PSE index (PSEi) | Highest 5.38%, lowest 2.56% (as of 2019) | P1k, depending on your type of fund | No limit | High | at least 5 yrs | Banks, Mutual Funds-Mutual Fund companies, stock brokerage firms | tax already subtracted, unless declared by issuing company | Learn more: https://thethriftypinay.com/2020/03/08/a-beginners-guide-to-investing-in-index-funds/ | https://pesolab.com/index-funds/ | |
| Corporate Bonds | Medium to long-term debt instruments issued by a corporation | 4% to 8% per annum; coupons are paid semi-annually or quarterly | P100k to millions, depending on the issuer | Bank declares the limit | Medium to high risk, depending on the corporation | 3 to 10 years, but can be redeemed prior maturity at prevailing market rates | Banks | subject to 20% withholding tax | Learn more: https://thethriftypinay.com/2018/07/11/193/ | ://thethriftypinay.com/2018/07/11/193/https://www.reddit.com/r/phinvest/wiki/bonds | |
| Retail Treasury Bonds (RTB) or Government Bonds | a direct, unconditional and general obligation of the Republic of the Philippines. | 3% to 5% per annum; coupons are paid quarterly | P50 and above, depending on the bank | Bank declares the limit | Low risk since it is backed up by the government | 3 to 25 years, but can be redeemed prior maturity at prevailing market rates | Banks | subject to 20% withholding tax | |||
| Pag-IBIG MP2 | PAGIBIG savings account that earns dividends | Highest 8.11%, lowest 4.63% | P500 | No limit | Low risk | 5yrs | Pagibig | tax free | Learn more: https://thethriftypinay.com/2020/01/25/what-is-pag-ibig-mp2/ | https://www.esquiremag.ph/money/wealth/pag-ibig-mp2-savings-program-a00290-20190503 | |
| PERA (Personal Equity & Retirement Account) | is a long-term voluntary retirement account that encourages individuals to save and plan for their retirement while enjoying the tax incentives | Earnings from the account varies depending on the investment category you’ve chosen; different products have different returns. | P1k | 100k annual contribution; 200k annual contribution for OFWs | Low to high risk, depending on the fund | 55 and 5 Rule: Once you reach 55 years old AND you have invested for at least 5 years | Accredited Banks (BDO, BPI, Landbank) | 5% credit on your income taxes which can be used to pay for any income tax liabilities | Learn more: https://thethriftypinay.com/2019/12/15/what-is-pera-and-why-you-should-get-one-now/#How_much_earnings_can_you_expect_from_a_PERA_account | http://www.bsp.gov.ph/downloads/primers/PERA%20FAQs.pdf | |
| SSS Peso Fund | Tax-exempt bond fund offered by SSS | 1 to 4% per annum | P1k | 100k per year | Low risk | At least 5 years. 35% can be redeemed after 5 years. The other 65% can be redeemed only when you reach 60 years old.. | SSS | Tax-free | https://sssinquiries.com/savings/sss-peso-fund/ | ||
| SSS Flexi Fund | Investment fund offered by SSS exclusive for OFWs | Based on SSS’ short term peso placements OR 01-day treasury bills | P200 paid in excess of SSS contributions | No limit | Low risk | Can be withdrawn as long as investment is held for 1 year | SSS | ||||
| SSS WISP Plus | -an optional retirement savings scheme that is both an investment and a savings program. – affordable, convenient, and tax-free savings plan. | no track record yet as this has just been launched on Dec 2022 | minimum P500 | No limit | Low risk | depends on your investment horizon | SSS | tax-free | Learn more: https://thethriftypinay.com/2023/01/28/how-to-invest-wisp-plus-sss/ | ||
| Business | A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities | varies | varies | varies | varies | varies | – | may be subject to multiple taxes – sales tax, income tax, VAT etc | |||
| Real Estate | Buildings, Land, Condo, property | varies | No limit | medium to high risk | depends on the property | Real estate brokers; direct sellers | property sales subject to capital gains tax; rental income may be subject to both income tax and VAT | Learn more: https://thethriftypinay.com/2021/07/03/10-helpful-condo-buying-tips-in-the-philippines-2021/ | |||
REITS | similar to a mutual fund. But with REITs, the income is being generated from real estate properties that have rental income or any derivatives of a real estate project. | not applicable yet | As low as P1k, depending on the investment platform | medium to high risk | depends on the property | Online REIT Brokers | Learn more: https://thethriftypinay.com/2020/08/15/how-to-invest-in-reits-in-the-philippines-2020/ | ||||
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How to Choose Investments in the Philippines?
I used to ask this question myself. Contrary to what some may say, choosing the right investments in the Philippines is not as basic as A-B-C. No financial advisor or financial planner would know the answer right away if presented with such a question.
Because the truth is, there is no general answer. The right investments depend on the person asking the question. In this post, I shared 4 questions you can ask yourself to determine if you are on the right track. Answer these questions and you get a better perspective on how to choose the best investments for your goals.
A little reminder also: Do the math to see if your chosen investment can meet the required rate of return to arrive at the target amount sufficient enough to fund your retirement expenses, college fund (or whatever purpose) – that is, inflation-adjusted too. Ayaw mo naman mahulog sa trap na nag-invest ka nga, ngunit kulang, diba? Try this time value of money calculator and see for yourself. You may ignore the currency sign though.
How to Build an Emergency Fund in the Philippines?
Of course, a cautious investor should know how to Build an Emergency Fund in the Philippines. An Emergency Fund is needed for challenges such as having your investments valued at a loss or experiencing a salary cut.
Ideally, this accounts for 6 months of your expenditures. But of course, why limit yourself when you can add more? Some people I know have gone the extra mile in putting up with one year’s worth of their expenses. It is highly recommended to establish an emergency fund first before diving into any investment vehicle.
I hope you found this “List of Best Investments in the Philippines 2024” guide informative. If you found this interesting, please share and forward it to someone who might find this helpful.
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Best Investments in the Philippines 2024