Best Investments in the Philippines 2024 UPDATED - The Thrifty Pinay

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:

Matrix of the Best Investments in the Philippines 2024



INVESTMENT VEHICLE
SHORT DESCRIPTIONRETURNSMINIMUM INVESTMENTMAXIMUM INVESTMENTRISK LEVELINVESTMENT HORIZON (expected time to remain invested)Where to investTax ImplicationsLearn more about it hereReferences
Savings AccountTypical bank account0% to 1.75% per annum;Digital banks offer 4% to 4.1% for a limited period.0 to P20k, depends on the bankNo limitLow riskAnytime; best for Emergency FundsBankssubject to 20% withholding taxLearn more: https://thethriftypinay.com/2018/07/10/the-importance-of-bank-accounts/https://www.imoney.ph/savings-account
Time DepositSimilar to a bank account but has a specified maturity date where you can add funds or roll over0.5% to 1.25% per annum
P1k to P10k, depending on the bankNo limitLow riskchoose between 30, 60, 90 to 180 days. Others offer 1yr or 5yrsBankssubject to 20% withholding tax if held for less than 5 yearsTime Deposit Calculator – https://drive.google.com/file/d/1YJfsS25ssW68hyn8yC-lZZkOeidVt-ew/view?usp=sharinghttps://www.imoney.ph/time-deposit
Equity FundsAlso 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 fundNo limitHigh riskLong term (5 yrs) Banks, Mutual Fund companies, stock brokerage firmstax already subtracted, unless declared by issuing companyUITF: 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 fundNo limitMedium riskMid to Long term (3 to 5 yrs) Banks, Mutual Fund companies, stock brokerage firmstax already subtracted, unless declared by issuing companyUITF: 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 Fundsa 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 fundNo limitMedium riskShort to Mid term (1 to 3 yrs) Banks, Mutual Fund companies, stock brokerage firmstax already subtracted, unless declared by issuing companyUITF: 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 Fundsinvests 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 fundNo limitLow riskShort term
(1yr or less)
 Banks, Mutual Fund companies, stock brokerage firmstax already subtracted, unless declared by issuing companyUITF: 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
StocksYou buy Stocks to have shares of ownership in a corpdepends 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 limitHighDepends on your strategy, if you are a day-to-day trader or investor for long termstock brokerdividends are subject to 10% withholding tax; stock sales are subject to transaction costLearn more: https://thethriftypinay.com/2019/11/16/how-to-invest-in-stocks-for-beginners-faqs/
Index Fundsa 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 fundNo limitHighat least 5 yrs Banks, Mutual Funds-Mutual Fund companies, stock brokerage firmstax already subtracted, unless declared by issuing companyLearn more: https://thethriftypinay.com/2020/03/08/a-beginners-guide-to-investing-in-index-funds/https://pesolab.com/index-funds/
Corporate BondsMedium to long-term debt instruments issued by a corporation4% to 8% per annum; coupons are paid semi-annually or quarterlyP100k to millions, depending on the issuerBank declares the limitMedium to high risk, depending on the corporation3 to 10 years, but can be redeemed prior maturity at prevailing market ratesBanks
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 Bondsa direct, unconditional and general obligation of the Republic of the Philippines.3% to 5% per annum; coupons are paid quarterlyP50 and above, depending on the bankBank declares the limitLow risk since it is backed up by the government
3 to 25 years, but can be redeemed prior maturity at prevailing market rates
Bankssubject to 20% withholding tax
 
Pag-IBIG MP2PAGIBIG savings account that earns dividendsHighest 8.11%, lowest 4.63%P500No limitLow risk5yrsPagibig tax freeLearn 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 incentivesEarnings from the account varies depending on the investment category you’ve chosen; different products have different returns.P1k100k annual contribution; 200k annual contribution for OFWsLow to high risk, depending on the fund55 and 5 Rule: Once you reach 55 years old AND you have invested for at least 5 yearsAccredited Banks (BDO, BPI, Landbank)5% credit on your income taxes which can be used to pay for any income tax liabilitiesLearn 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_accounthttp://www.bsp.gov.ph/downloads/primers/PERA%20FAQs.pdf
SSS Peso FundTax-exempt bond fund offered by SSS1 to 4% per annumP1k100k per yearLow riskAt least 5 years. 35% can be redeemed after 5 years. The other 65% can be redeemed only when you reach 60 years old..SSSTax-free
https://sssinquiries.com/savings/sss-peso-fund/
SSS Flexi FundInvestment fund offered by SSS exclusive for OFWsBased on SSS’ short term peso placements OR 01-day treasury billsP200 paid in excess of SSS contributionsNo limitLow riskCan be withdrawn as long as investment is held for 1 yearSSS
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 2022minimum P500No limitLow riskdepends on your investment horizonSSStax-freeLearn more: https://thethriftypinay.com/2023/01/28/how-to-invest-wisp-plus-sss/
BusinessA business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activitiesvariesvariesvariesvariesvariesmay be subject to multiple taxes – sales tax, income tax, VAT etc
Real EstateBuildings, Land, Condo, propertyvariesNo limitmedium to high riskdepends on the propertyReal estate brokers; direct sellersproperty sales subject to capital gains tax; rental income may be subject to both income tax and VATLearn 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 yetAs low as P1k, depending on the investment platformmedium to high riskdepends on the propertyOnline REIT BrokersLearn more: https://thethriftypinay.com/2020/08/15/how-to-invest-in-reits-in-the-philippines-2020/
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Best Investments in the Philippines

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

 

By Ameena Rey-Franc

Recognized as one of the Top Finance Blogs in the PH. Ameena Rey-Franc (founder of TTP) is a former Banker and BS Accountancy graduate turned Blogger, Keynote Speaker, and entrepreneur. Currently an RFP delegate, she is also the Author of a book about Financial Resilience and has held seminars for reputable companies like GrabFoodPH, Pru Life UK, VISA, JPMorgan Chase& Co., Paypal, Fundline, Moneymax, and many more. The Thrifty Pinay's mission is to empower women to LEARN, EARN, and be FINANCIALLY-INDEPENDENT no matter what life stage they are in.