Investments in the Philippines You Can Start with Just P1,000
Published: July 25, 2019 | Updated: April 12, 2021 | Posted by: Moneymax | Personal Finance
What would you do if you win PHP 1 million right here, right now? You’d probably start splurging your winnings by buying gadgets, clothes, and other unearthly luxuries. Ask this question to others. You’d probably hear a few people respond with “investments.” And the truth is that you should follow their lead if you want to keep your million peso cake and eat it, too.
But what if you only have PHP 1,000 under your name right now? Can you still invest it and make your money grow? The answer is a big YES, there are investments for beginners out there. Believe it or not, there many possible investments in the Philippines. It’s up to money-savvy Filipinos like you to find these investments and take advantage of them.
Table of Contents
Cheap Investments in the Philippines
A mutual fund pools your money with multiple investors into a bigger fund, which will then be invested in bonds, stocks, or money market funds. The funds are managed by a specialized mutual fund company where your shares are managed by a fun manager. The Securities and Exchange Commission (SEC) regulates mutual funds companies in the Philippines.
Ideal for: Low to high-risk investors with long-term financial goals
Advantages of Mutual Funds:
- Mutual funds are among the best investments in the Philippines, especially if you are a beginner and have no time and expertise to monitor your fund’s performance.
- The higher your investment and the longer you invest, the higher profit you’ll get.
- A professional fund manager from the mutual fund company of your choice will grow your money and make investment decisions for you.
- You can start investing for as low as PHP 1,000. SunLife, ATRAM, and PhilAm offer some of the most affordable mutual fund investments in the Philippines.
Risk: Investments may go up or down, so returns are not guaranteed. At some point, you could lose some funds on your investment.
Unit Investment Trust Fund (UITF)
You can also invest your PHP 1,000 on a Unit Investment Trust Fund. A UITF is an open-ended pooled investment fund handled by a fund manager. It’s quite similar to a mutual fund, the only difference is that UITFs are offered by banks and are thus regulated by the Bangko Sentral ng Pilipinas (BSP).
Ideal for: Low to high-risk investors with long-term financial goals
Advantages of UITF:
- Your money will be managed by a professional, so you won’t have to monitor the market daily.
- You’ll invest in high-yielding assets that are traditionally available only to institutional investors.
- Among other investments in the Philippines, it’s to buy and withdraw UITF units—just request for a withdrawal, and the bank will credit your money to your settlement account.
- You can invest for as low as PHP 1,000. UITF investments in BDO are made easy with their popular BDO Easy Investment Plans .
Risk: Just like mutual funds, returns for UITF are also not guaranteed. Prepare to lose some funds from your investment.
If you want something more complicated, you can try venturing on stocks. Joining the stock market  in the Philippines means buying stocks of a publicly listed corporation and becoming one of its part-owners or shareholders. You’ll earn when the company performs well and alternatively, you’ll lose if they perform poorly.
Ideal for: High-risk investors with long-term financial goals
Advantages of Stocks:
- Investing in stocks yields high earnings when you buy stocks of a company at a low market price and then sell it later at a higher price.
- You’ll have easy access to funds, which can be cashed in or out through your broker during trading hours.
- You’ll need only at least PHP 1,000 to open a stock trading account. COL Financial offers one of the most affordable stock market investments in the Philippines with their COL Starter Program.
Risk: It’s a high-risk investment because stock market prices tend to rise and fall rapidly. If the market price goes down, you’ll lose funds. You can limit risk by putting your money in different stocks and allocating only a portion of your income to stock investing.
Pag-IBIG/SSS Investment Program
But if you’re looking for investments for beginners, try something that’s less intimidating. How about investing in government-regulated programs like the Pag-IBIG MP2 Savings Program and the SSS PESO Fund? They work like saving accounts from banks, only with higher interest rates. You can start investing for as low as PHP 500.
Ideal for: first-time investors with low income, employees or self-employed
Advantages of Pag-IBIG/SSS Investment Program:
- The initial investment for the Pag-IBIG Fund starts at PHP 500, while the SSS Investment Fund starts at PHP 1,000. Both are very affordable for an investment vehicle.
- Since it’s regulated by the government, there’s a slim chance of losing your savings.
- Registration is a breeze as long as you’re already a Pag-IBIG or SSS member. Monthly payments are not required and they won’t penalize you for late payments.
- If you are worried about investment scams, then these government funds are perfect for you since they are already well-vetted.
Risk: Your dividends will depend on the financial performance of Pag-IBIG and SSS as a whole, so expect some inconsistent earnings.
- Pag-IBIG MP2 vs. SSS PESO Fund: Which is the Better Savings Program for You?
- Pag-IBIG MP2 Guide: How to Enroll and Invest in MP2 Savings Program
GCash Invest Money
But what if you only have less than PHP 500? Can you still start your journey to the world of investments? The fact that you’re seeing this here means the answer is still yes. GCash Invest Money  allows anyone with a smartphone to start their own investment, all thanks to GCash’s partnership with ATRAM Trust Corp.
Ideal for: first-time investors with low income, college students, anyone with a smartphone
Advantages of GCash Invest Money:
- You can have an investment for as low as PHP 50, the lowest initial investment out there.
- No need to worry about submitting documents or maintaining a balance. Just register and invest.
- You can add to your investment easily with just a few clicks.
- Since it uses the GCash app, you can manage all of your investments online.
Risk: Technically, the risks are low to none since it’s a relatively new investment vehicle and you’re investing low amounts of money. It’s the perfect way to introduce investments for beginners.
Thanks to these inexpensive investments in the Philippines, your PHP 1,000 can easily grow to any amount you want. If you’re feeling lucky, you can even combine these investment vehicles to form a diversified portfolio and minimize risks.
Don’t be discouraged by your low capital. What matters more is that you’re already taking the first step towards financial freedom. Do it as soon as you can—right after you read this article even—so you can make the most out of your investments.
- Achieve Your Goals with These 7 Best Investments
- Best Investments For Every Risk Appetite
- 7 Smart Ways to Spend Your 13th Month Pay
DISCLAIMER: Information published on this blog or elsewhere on www.moneymax.ph should be used for general information purposes only and does not constitute investment advice, performance data or any solicitation or recommendation that any security, investment product, transaction or investment strategy is suitable for any specific person. This material does not take into account your financial situation, risk tolerance level, investment experience or objectives; all of which are unique to you. Before acting on information on this blog, we suggest consulting an independent professional to advise you on the risks of any decision and the extent of any exposure to loss.
With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.