What are the Investment Opportunities in the Philippines

by Gily Tenorio on March 24, 2013

in Investment

Are you looking for investment opportunities in the Philippines? Maybe you’re an employee or an OFW who are looking for ways to invest your money while working full time.

Many people wants to make more money because of many and varied reasons. It is not bad. Actually, anything that is good, legitimate and promotes goodness should be tried and venture out by anyone.

However, many people these days are afraid to invest because of the investment scams happened in the past. Perhaps, you knew the Aman Future scam that happened recently last year.

So how do you prevent becoming a victim of scam? The simple and easy answer is to study and understand the investment! Any legal investment must be properly documented and registered with Securities and Exchange Commission (SEC).

In addition, any investments that gives unrealistic and very high returns is a sure scam. The example for this is 10% return in one week or double your money after 1 month.

If you want to learn more about how to avoid scams, you can see this post to give you tips and change your thinking about investments.¬†Let’s start on the list of investment opportunities in the Philippines.

INvestment Opportunities in the Philippines

1. Mutual Funds

Probably, mutual fund is the most simple and easiest investment opportunity in the Philippines today. The concept of this investment can be understood easily by anyone even regular employees like you.

As a background, mutual fund is a pool of fund from different investors. The fund is managed by a mutual fund company duly registered in SEC.

The company hires a fund manager that is responsible for taking care of the fund and investing it in different vehicles such as investing in Philippine stock market, government bonds, special deposit accounts and other commodities.

Depending on your type as an investor, there are various types of mutual fund that you can choose from. Here’s a post about different kinds of mutual fund.

 

2. Unit Investment Trust Fund

Unit Investment Trust Fund or UITF for short is much similar as mutual fund in concept and the way it is invested. It is also a pool or collection of fund from many people.

UITF can be opened in any bank that offers this kind of investment. Most of the major banks in the Philippines these days have UITF in their portfolio. The fund here is also managed by a fund manager who employed by the bank and very knowledgeable about investments.

If you have Internet banking with your bank, opening a UITF account can be easy and doable online. For example, in BPI, you can open a UITF or even mutual fund account via BPI express online.

However, you still need to send the printed form and other requirements to their office for validations and security purposes. So I would suggest that you enroll your bank account to online banking in order for you to open a UITF in the future.

Below you can see some of the articles I made to give you more understanding about this investment opportunity in the Philippines. You can also check this link from PNB that good explanation about UITF.

 

3. Treasury Bills

Treasury bills (T-bills) is not a popular investment among the ordinary people because it requires big capital an it is not easily accessible. Treasury bills are being offered also by the bank with a normal minimum investment of P200,000.

T-bills are peso-dominated short-term fixed income securities issued by the government of the Philippines through Bureau of Treasury. There are several advantages of T-bills such as you can receive the interest in advance though the whole amount of the money you invested will be given to you on the maturity date.

Another advantage is that this investment opportunity is generally risk-free investment since the government will not fail to pay its own debt. It also yields higher interest than regular savings account and time deposits.

 

4. Philippine Stocks

Investing in Philippine stock market is becoming popular these days among OFW and regular employees alike. However, compared with other neighboring countries, there is still  a very low percentage of Philippine population who invests in stock market.

Last year, Philippine stock market beat almost all stock market in the world in terms of return it gives to investors. There is a promising opportunity in stocks though not all people can venture in it.

So how can you invest in stock? First of all, before you invest, you must understand how it works and the consequences of your investment. Be reminded that stock is a high-risk investment and the profit is not guaranteed by anyone.

Second, you should open a stock broker account. There are many stock brokers in the Philippine that you can choose from that also offers online service. Check here the list.

Lastly, you should fund your account to start buying stocks which you can do online. If you are a BPI or Metrobank customer, you can add money to your stock account through Internet banking.

With Citiseconline, it is easy to add and withdraw money from your stock account. I recommend this stock broker along with BPI Trade since they are established ones and have user-friendly interface.

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5. Rental Properties

Owning a rental property is one of the best investment opportunities in the Philippines today. It is the reason there are lots of condominiums being built today because property companies advertise it as a good investment.

I know some people who earns good money from renting their apartments and commercial buildings. It is an ideal investment because you earn each month from the rental fee without direct involvement. Indeed, this is a good passive income.

If you have an available space of land with a good location and access, constructing and renting out commercial space or residential property is a good to go. Though this kind of investment requires big capital at the beginning, the money it will make in the future will be continuous as long as there is a tenant.

 

6. Variable Life Insurance

Variable Universal Life Insurance or VUL is a type of life insurance coupled with investment. It is now becoming popular among the insurance companies operating in the Philippines.

VUL has a cash value depending on the performance of its investments. The “variable” means that it can be invested in different types of investments like stocks, mutual funds and bonds.

Among the insurance companies in the Philippines, Sun Life and BPI-PhilAm are the top companies that offer VUL. They have also wide range of products and services that you can choose from.

 

7. Online Properties

Most people don’t realize the opportunity they can get from online web properties. Think of this. You own a website that gives you monthly income with minimal work at the beginning stage and it gives you increasing income for the years to come.

On the other hand, building and owning a website is not easy as it may seem because it involves more than average skills and requires big amount of your time and money at the initial life of your we property. However, as you make the site and promote it, the work will not be hard as the time goes by because you are becoming familiar on how it works.

There are also different kinds of online properties like blog, affiliate site, membership site, forum website, classified ads like Sulit and AyosDito, and gaming site. Each type has its own potential of earning and target audience.

 

Final Notes

The list presented in this post about the investment opportunities in the Philippines are doable and can be started by any individual who wants to take the opportunity to earn more money. Please be reminded that any investment has no guarantee of return and may be risky.

Do your own study and research before diving into these investments since it is your own money. This blog can help you understand the in and out but you yourself must take bigger effort to make your investment profitable and successful..

 

About the Author:

GilGil Tenorio is a blogger, a husband, a father, and an active Christian. He likes playing guitar, C.S. Lewis, Plants and Zombies and NBA. Follow him at Facebook, Google+, YouTube and Twitter. Thanks!

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{ 2 comments… read them below or add one }

Grace @ Investment Total September 25, 2014 at 05:22

Sir Gil, thank you for sharing your knowledges about investing. You encourage me to invest in mutual funds, by reading some of your post about FAMI-SALEF. Keep up the good work.

LFE is a truly inspirational and encouraging. I’ve learned a lot from you Sir. I hope when I want to set up my blog on wordpress, you can help me too. God bless Sir Gil. Have a wonderful and successful financial journey.
Grace @ Investment Total recently posted..Retirement Target Earning Asset for People Age 20sMy Profile

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Gily Tenorio September 25, 2014 at 12:26

Thanks you for encouraging words.

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