The Philippines economy faces many challenges such as poverty, unemployment, and inequality. However, there are many opportunities to increase your wealth by investing in the country.
The country has a well developed service sector and manufacturing and export industries. In addition, it is possible to invest in financial markets. Let’s explore the opportunities further in our Philippines investment guide.
Philippines investment options
- Stock market: you can invest directly in individual stocks or invest in mutual funds that trade stocks. The Philippine Stock Exchange (PSE) offers many long and medium term investment options to investors.
- Real estate: The real estate market in the Philippines has been growing steadily over the recent years. Investing in property is considered high return investments Philippines and not only in the country, but globally. Top picks are residential buildings, commercial spaces and land. The most popular areas for real estate investment in the country include Metro Manila, Cebu, and Davao.
- Mutual funds: Mutual funds gather money from various investors to invest in a diversified portfolio of various investment vehicles, such as stocks, bonds, and other securities. They are managed by professional fund managers and offer an opportunity to invest in various asset classes.
- Bonds: Philippine investment market offers access to government and corporate bonds. Bonds are fixed-income securities that offer regular interest payments. They are considered relatively safer investments compared to stocks, and trading CFDs (Contracts for Difference). On the downside, bonds provide lower returns.
- Small businesses and entrepreneurship: Entrepreneurs are striving in the Philippines, and starting a small business can be a rewarding experience. To invest in Philippines opportunities are countless in the food and beverage industry, as well as in retail and technology.
- Agriculture: the Philippines is an agricultural country and investing in agriculture can be a profitable decision. The best investments Philippines opportunities exist in farming, aquaculture, livestock, and supply chains.
- Renewable energy: The Philippines government is actively encouraging the spread of renewable energy production within the country. The most popular renewable energy investments are made in solar power, wind farms, and hydroelectric projects.
Philippine investment alternatives
The alternative to investing is active trading in financial markets. Active trading requires more focus and energy from an investor than passive investing. And there are many possibilities to make money trading different asset classes such as:
- Trading stocks as CFDs: CFD stands for Contract for Difference and is best for market speculations. When traders trade stock CFDs, they can go long or short and make money trading in various market conditions. In addition, CFD trading enables traders to use leverage to increase their purchasing power. Philippine investment trends indicate that more and more people are participating in active investing.
- Currency trading: Forex trading is easily accessible in the country as there are lots of brokers to choose from and barriers to entry are very low. Registration process with the brokers typically takes less than a day and most brokers have very low minimum initial deposit requirements.
- Options trading: options give traders the right, but not the obligation, to buy or sell an asset at a predetermined price within a specific timeframe.
- Futures trading: Futures contracts are agreements between to purchase or sell an asset at a predetermined price and at a predetermined date in the future. There are many types of future contracts such as futures on commodities, currencies, stocks, indices and other instruments.
- Commodity trading: Commodities are raw materials that can be transformed into consumer goods such as wheat, oil, and precious metals. Traders can speculate on the price movements of commodities through various derivative instruments, such as futures contracts or ETFs (exchange traded funds).
Philippine investing tip and tricks
Investing profitably requires careful planning and research. Investors need to have a good understanding of the investment vehicles before risking money. In this Philippine invest guide we showed you different ways to make an investment, now let’s discuss how to approach the process:
- Learn about your strengths and weaknesses: try to invest in an asset that you have interest in and can spend quality time on research.
- Determine your risk tolerance: every investment carries certain amounts of risks. It’s best to determine in advance the level of risk that you can take.
- Diversify your portfolio: spreading investments into different asset classes helps to reduce exposure to limited number asset classes that reduces risks.
- Seek professional advice: consider consulting with a financial advisor or investment professional who can provide you with guidance in the process.
- Practice patience and long term planning. Investing takes time. Even if you are an active trader, you should be focused on long term goals and not on today’s profits.
FAQs on best investment opportunities in Philipines
What is the best thing to invest in Philippines?
Depends on the investor. If you have a limited amount of time to invest actively, you can use passive investing methods such as purchasing bonds, real estate or mutual funds. For active investors, some of the best methods to increase wealth are trading stocks, currencies, indices, commodities and futures.
Where to invest 1000 pesos in Philippines?
A thousand pesos can be invested in highly leveraged trading activity such as CFDs. On the other hand, 1000 pesos is not a significant amount of money to make serious profits. You can start active trading using the money since many brokers have very low barriers to entry. Do not expect to become a millionaire from 1000 pesos, however, you will gain valuable experience in live trading that can be capitalized later in your life.
Where to invest in Philippines for beginners?
Beginners first need to create clear goals on what they want to achieve and determine their risk tolerance. Government bonds are less riskier than other investment vehicles, on the downside, profit potential from bonds is very limited. For active investors, best starting points can be with trading stocks, commodities, forex, or indices. In addition, there are many opportunities in agriculture and small businesses.