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Where to invest my money?

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Ah, here again is that perennial question, “Where is the best place to put my money?”

We already have a lot of articles like this before (just scroll down to see Related Posts), but people seem to have this insatiable thirst for the ultra-mega-super-cool-best way to invest their money.

Fret not, we have another article to fill you up. It gives you a comparative pros and cons analysis of various traditional investment products.

The perfect investment instrument does not exist, because there is no right mix of investments that can suit all people. Everyone faces unique circumstances and has varying investment goals. One has to determine the right portfolio that will work for them given one’s financial situation and financial objectives. Determine your investment objectives correctly by reading our article, Setting your Investment Objectives.

Here’s our comparative pros and cons analysis of various traditional investment products. Learn and decide which one’s best for you.

1. Bank deposits

Pros: They are safe since the Philippine Deposit Insurance Corporation (PDIC) insures deposits up to P250,000 (PDIC coverage now increased to P500,000). They provide steady interest income. They are also easily accessible, meaning you can easily withdraw your money given several bank branches and a lot of ATMs everywhere. A savings and current account can help manage one’s day-to-day expenses.

Cons: Interest on savings and current checking accounts are low.

What to do: Consider investing in a time deposit for higher interest. The secret to earning in a time deposit is to hold it for a long term to avail of interest rates higher than inflation. You can also have investment in foreign currency to take advantage of fluctuating exchange rates.

Want to learn more? Join the PMT Forum Discussion on Banking / Insurance / Credit Cards

2. Government securities

Pros: Government securities, such as Retail Treasury Bonds, Pag-ibig Housing Bonds and the like are relatively safe since they are guaranteed by the Philippine government. They also provide steady income. Most of the government securities can be liquidated by selling to other investors or selling back to banks that offered the securities.

Cons: Minimal interest. Although higher than traditional savings and current accounts, interest earnings may still be lower as compared to other investments.

What to do: Hold some government securities as part of your portfolio. You may want to invest directly in these instruments or join a mutual fund or unit investment trust fund investing in government securities.

Want to learn more? Join the PMT Forum Discussion on Corporate Bonds and Government Securities

3. Corporate Bonds

Pros: As fixed income instruments, they give fixed interest income for a specified number of years. The rate is usually higher than that offered by government securities or bank deposits.

Cons: Bonds come with a risk. They are not guaranteed by an insurance company like PDIC. The higher the interest offered, the higher the risk that the company will default on payments. If the company folds up, it may end up not paying its bondholders.

What to do: Put some money in bonds especially if your financial goal is to preserve capital. Hold it for the long term. Choose only bonds with good rating. You may want to join a mutual fund or unit investment trust fund directly investing in bonds to save you the trouble of identifying the best performing bonds in the market.

Want to learn more? Join the PMT Forum Discussion on Corporate Bonds and Government Securities

4. Stocks

Pros: When there is a bull run in the market, stocks perform well. You also gain a lot when you get good stocks during the initial public offering. In the long run, stocks may outperform bonds in terms of yield.

Cons:  Returns are not guaranteed and it is possible to lose your capital.

What to do: Invest only what you can afford to lose. Hold your stock investment for the long term to ride out market price fluctuations. You may also invest in stocks via a mutual fund or a unit investment trust fund to get rid of the hassle of monitoring stock prices daily.

Want to learn more? Join the PMT Forum Discussion on Stocks and Stock Trading

5. Real Estate

Pros: You may earn a lot as the price of property appreciates over time. You can also use it to give you recurring income through rental payments. Land, in particular, is also considered a store of value. It does not usually depreciate over time.

Cons: Real estate is not very liquid and you may be tied to it should you need funds. Sometimes the market is down and you may not get a good value for the property if you are forced to sell it. Maintenance costs may also be high.

What to do: When buying real estate, time it right to get a good price for your property. If you are not using it, you may also rent it out. Location, location, location of the property is key. If you are getting a condo unit, read here our tips to consider when buying a condo.

Want to learn more? Join the PMT Forum Discussion on Property and Real Estate

– Excerpts from the Philippine Daily Inquirer’s “Take Charge of your Money” series

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About this post: where to invest in the philippines, how to invest money, where to invest money, where to invest your money in the philippines, how to invest money in the philippines
  • john philip ordinal

    pls reply asap

  • james

    For as low as P12.50/day, you can enjoy 8.5%/annum, better than time deposit! it’s a savings plan with insurance component.

    • Antabo Crystal

      sure!where should i invest?

  • jack

    you migth consider investing your money in CURRENCY TRADING. this is the most liquid among all the investment. one good thing about this kind of investment is that THERE’S NO HOLDING PERIOD. Meaning to say you can widraw your profit of capital at anymoment, when emergency occured without PENALTIES.
    IT is a non-taxable and all income are in dollars. if interested you may contact

    Jack V. Kadchao Jr.
    cebu city, philippines

  • sekyu

    hey you!! all of you are scams!!! don’t be fool by this scammers… they are all out in the way of good investment. i much prepare to go with LEGAL kind of investings, not that kind of scams. maybe, at first quarter it return much of what you’ve expecting but as your money roll out, it will flush to the pocket of others. “let’s enjoy the freedom of investing not joing the illegal part of savings”… like the preceded postings…


    John Loid

  • arvinm

    BTW im arvin m., financial adviser and mentor, we provide financial management seminar and its all about investments, where to invest your hard earned money and at the same time you can compute your money for your near future according to your responsibilities. this may be new to you. seminar is free and you can contact me @ 09266198167 for more further questions.

  • miles

    there is no such thing as “get rich quick scheme”. build your solid financial foundation the right way. become your own financial planner because the best person to protect your money is YOU. investment is a very wide topic. depending on your goal, there are a lot of investment facilities here in the philippines. for more info just text me @ 09274789516 or email me @

    • Antabo Crystal

      how much money could i invest?

  • Michaela

    lol dont trust someone guys. they are scammers and trust your self in investing not to someone you dont even know. do your own business like food, lending money w/ qualateral etc…

  • Thanks for the list James, it’s a good resource for anyone who’s unsure where to invest. As of the moment, I am looking at investing in stocks and mutual funds so it’s always good to get to read what you think about each investment options.
    .-= Jonha @ Happiness´s latest blog ..Manny Villar’s Aggressive Marketing vs. Noynoy Aquino’s Effective Marketing =-.

  • I agree with all of the list except the stock because it is very risky and you need to study it will before you invest.

  • Lina

    Looking for a place to invest your money? i might be able to help. Contact me at 09178201937 Thanks!