I know exactly how it feels to want to start investing and growing your money but not know how or where to begin. 24-year-old me finished reading an investing book and decided to try the stock market. I felt thrilled and excited, but at the same time I kept asking myself if I made the right decision. I wondered if there was a more suitable investment for me and if I really understood what I was getting into.
Fast forward to 2026, I have already been invited to conduct seminars to different companies to teach the basics of investing and have written several articles about investing too. What once felt confusing and intimidating has now become something I am passionate about. And now, I am sharing these lessons and experiences with you. This article breaks down the best investments for beginners in the Philippines into low risk, medium risk, and high risk options so you can choose what fits your goals and comfort level.
What you’ll learn:
- 4 Questions to Ask When Choosing The Right Investments For You
- Low risk investments
- Medium risk investments
- High risk investments
- Common mistakes you should avoid
4 Questions to Ask When Choosing The Right Investments For You
During my invest seminars, what I usually share first is knowing how to choose the right investments for you. I’ve narrowed them down into 4 questions and I hope you take time to ask yourself these:
1. What are your Life Goals?
What’s your investment for? The first aspect you should straighten out is your goal because what good is an investment if you are not even sure what you will need it for in the first place? Your goal will be the motivation behind the investment you wish to commit to.
Why do you want to invest? Is it for an emergency fund, retirement, your child’s education, or extra income?
2. Time Horizon: When do you need the money?
How long can you keep your money invested? Knowing this is crucial along with incorporating the matching principle.
The principle of matching states that long term goals should be accompanied by long term investments. Short term goals must have a corresponding short-termed investment while medium term goals with medium risk investments.
The farther your goals are, the more risks you are allowed to take. The nearer you are to your goals, the less risks you should take.
3. Risk Profile: What type of RISKS can you take?
Can you stay calm if your investment value goes down for a while? These questions matter because the best investments for beginners in the Philippines, or for you, depend on your personal situation and not on trends or hypes.
Risk means the chance that your investment value can go down. Generally speaking, risks and returns are DIRECTLY RELATED, meaning as the risk level of an investment increases, the potential return increases as well. If the risk level is low, the potential returns are low too. Furthermore, the greater the risk of loss, the higher the returns.
Your risk profile is conservative if you are willing to take on a little risk while keeping your principal amount intact, moderate if you can take a moderate amount of risk, and aggressive if you are willing to take a lot of risks and it doesn’t matter if your principal amount declines a little bit in order to maximize your chances of gaining profits.
If you need your money within a year or two then safer options are better. If you are investing for long term goals like retirement then you can afford to take more risk. Always remember that investing is a long term journey and not a quick way to get rich.
4. What is your Personal and Family Situation?
Will you be providing for your parents when they retire? If so, you might want to include them in your goals and perhaps provide a small yet stable business for them.
Do you need to buy a house or will you be inheriting a house from your parents? If so, you might not need to save for a house but instead, focus on another property investment or just focus on another goal.
Do you plan on having children? If so, you might want to invest for their education.
Best Investments For Beginners Philippines 2026
1. Low Risk Investments
Low risk investments are ideal for beginners who want to protect their capital. These investments usually give lower returns but are more stable. Many first time investors start here to build confidence and good money habits.
High Interest Savings Accounts
High interest savings accounts especially from digital banks are one of the easiest ways to start investing. These banks are regulated and an investor’s money is insured up to a certain amount. While the returns that range from 2% to 4% p.a. are not very high, they are still better than regular savings accounts in traditional banks that only earn 0.25% p.a. High-yield savings accounts are often included when talking about the best investments for beginners in the Philippines because it is simple, safe, and very accessible.
- Related article: Digital Banks VS Traditional Banks Philippines. Which is better?
Time Deposits
Time deposits allow you to earn fixed interest by locking in your money for a specific period (30 days, 60 days, 90 days, or 5 years depending on the bank). These are good for conservative investors who want predictable returns.
The good news is that digital banks offer higher time deposit interest rates compared to traditional banks. The interest rates in digital banks range from 5% to 8% depending on your chosen duration.
Government Bonds and Treasury Bills
Government bonds and corporate bonds are fixed-income investments where you lend money to the Philippine government and earn interest in return. These are considered very safe because they are backed by the government.
Where can you find these? For corporate bonds, you can ask your local bank. As a former bank sales officer handling clients, the challenge here is that the bank usually notifies the VIP clients first. There is usually a quota for this like for example, one bank has a quota of P5M worth of RTBs. Once the VIP Clients get a spot and exhausts that P5M, no one can invest anymore.
For government bonds, you may visit www.treasury.gov.ph.
Pag Ibig MP2 Savings
Pag Ibig MP2 is one of the most popular investment options among Filipinos. It is a voluntary savings program with a minimum requirement of P500 and you can invest as much as you want. Earnings are tax-free.
It offers high dividend rates. Recent and declared rates are 7.03% for 2022, 7.05% for 2023, and 7.10% for 2024. Dividends can be received annually or after 5 years. You can start with a small amount and add more while incorporating the tips and strategies I shared in my article Pag-ibig MP2: 4 Tips to make the most out of Pag-ibig MP2. Because funds are invested in government-backed projects, many people consider MP2 as one of the best investments for beginners in the Philippines who want low risk and decent returns.
- Related article: How to Invest in Pag-IBIG MP2 Program (Earn Passive Income)
UITFs and Mutual Funds (Money Market Funds, Bond Funds)
UITFs and Mutual Funds are both pooled funds from investors and are both managed by a fund manager. Both are almost the same when it comes to functionality and have only a few key differences in terminologies and the body regulating them.
When it comes to earning, I can best explain the two through the example below:
The key differences are:
Note that UITFs and Mutual Funds are invested in a wide array of options. They are considered low risk investments IF they are invested in low risk options such as bond funds and money market funds. Otherwise, they can be classified as medium or high risk investments, especially if they are invested heavily in stocks or other volatile assets.
2. Medium Risk Investments
Medium risk investments offer better growth potential but are riskier than the low risk investments in the Philippines. These are suitable if you already have an emergency fund and can invest for at least three to five years.
Index Funds
Index funds are a diversified and a low-cost means of investing in the stock market. So if you’re someone who can’t analyze and monitor the stock market then index funds is for you.
When you invest in index funds, you are automatically invested in the Philippines’ top 30 Companies whose shares are traded in the Philippine Stock Exchange (PSE). An Index Fund’s goal is to “mirror” the PSE index (PSEi) which means they should have low management fees and should have a small tracking error. I explained more of these technical terms in this article: How to Invest in INDEX FUNDS in the Philippines.
For long term investors, index funds are often considered part of the best investments for beginners in the Philippines because they require less effort and emotional decision making.
REITs
If you’re not really into property investing but still want to dive into the world of real estate without shelling out a lot of money, REITs maybe the one for you. REITs prices can go up and down like stocks but they also provide regular income through dividends from rent and property earnings. Because REITs invest in real estate and are required to pay out 90% of their income, they are less volatile than individual stocks but still carry more risk than bonds or high-yield savings.
- Related Article: How to Invest in REITs in the Philippines
Gold
Gold is something you can purchase as an investment and proudly wear! It is considered a medium risk investment because its price changes over time but it doesn’t usually lose its value permanently. When the economy is uncertain or inflation is high, many people buy gold which can push its price up. However, gold doesn’t have an inherent value meaning it does not earn interest or dividends like stocks and reits. This means you can only make money if its value increases. This makes gold useful for protecting wealth and balancing your investments but it isn’t ideal if your main goal is regular income.
- Related Article: How to Start a Jewelry Business in the Philippines
High Risk Investments
High risk investments can give higher returns but also have higher chances of loss. These are best for long term investors who understand the risks and can stay invested during market ups and downs.
Stock market (Individual Stocks)
Buying individual stocks means you become a part owner of a specific company. When the company performs well, your investment can grow. But when it struggles, the stock price can also go down. Even if it is a high risk investment, the stock market has made numerous millionaires.
Stock prices change based on business results, news, and overall market conditions. Learning how to analyze stocks using fundamental analysis to understand the company and technical analysis to study price movements takes time, but for patient investors, it can be both rewarding and empowering.
- Related Article: How to Invest in Stocks in the Philippines
Cryptocurrency
Cryptocurrency is a digital asset that operates independently of traditional banks and is known for extreme price swings. For example, Bitcoin, the first and most popular cryptocurrency, has seen its price rise from less than $1,000 in 2017 to over $60,000 at its peak in 2021, but it has also dropped by more than 50% at times. Some investors have made really huge profits while others have suffered major losses. Beginners should be very careful and only invest money they can afford to lose.
- Related Article: How To Invest In Cryptocurrency in the Philippines
Real Estate
Real estate investing involves putting your money into properties such as residential units, commercial spaces, or rental properties. You can earn from real estate through rental income, capital appreciation wherein you sell the property after an increase in its value over time, and property management wherein you find and screen tenants and deal with the financial and legal aspects. While it usually requires a hefty starting capital and long term commitment, real estate can provide stable income and serve as a good hedge against inflation. Plus, it’s a hard asset and something tangible if you prefer something physical rather than purely paper-based ones.
UITF and Mutual Funds (Equity Funds)
Like mentioned earlier, UITFs and Mutual Funds vary in risk levels depending on where the pooled funds are invested. A UITF or Mutual Fund that is considered high risk has the funds invested in equity funds.
Equity funds are investment funds that primarily invest in stocks of different companies. The goal is to grow your money over time by earning from the increase in stock prices and sometimes dividends.
Start Small and Stay Consistent
One important lesson in investing is that you do not need a big amount to start. Many platforms allow you to begin with just P500.00. The key is consistency. Investing regularly helps reduce risk and builds wealth over time.
- You might like: Peso Cost Averaging VS Lump sum Investing: Which is better?
Common Mistakes Beginners Should Avoid
Many beginners chase quick profits by hopping onto the “uso” bandwagon and following what others are doing without even understanding the investment. Remember that what may work for them may not work out for you since we are all wired differently because we all have different goals and different risk appetites.
Another mistake is putting all your money in one place. Diversification or putting your eggs in different baskets can help manage risk. Also avoid investing money you will need soon like your emergency fund or any amount that you will be needing in the near future. Learning from these mistakes early can save you time, money, and stress.
The best investments for beginners in the philippines are those that match your goals risk tolerance and time horizon. Start with low risk options build your knowledge and slowly explore medium and high risk investments as you gain confidence. You do not need to be rich or highly educated to invest. What you need is patience, discipline, the willingness to learn and putting that learning into action so you can build a secure and comfortable financial future.
Best investments for beginners in the Philippines 2026