As of 2021, Bangko Sentral ng Pilipinas (BSP) released a Financial Inclusion Survey stating that only 36% of Filipinos are venturing into investing, which is significantly lower compared to the other percentage of Filipinos who mainly rely on working— the most efficient way to earn money as per the larger group of Filipinos; either through service or owning a business.

And a huge factor of this might be the lack of exposure to the concept of investing by individuals in the Philippines.

But as part of adulting journey, financial security should be one of your top priorities. Which is why it is ideal to set foot on investing as early as possible, because this would let you make your money work for you. Some of the several ways you can do it is by buying an asset and selling it for a higher price after it increases in value, or by simply consulting with a financial advisor and letting them do the work as you monitor the progress.

7 Beginner-Friendly Investments for Filipino Young Adults

1. Variable Unit-Linked Life Insurance (VUL)

This type of investment is ideal for beginners for the reason that a lot of the work is being done by professional fund managers. Some of the companies that offer this are Sun Life and Singlife, but let’s talk about the latter. Singlife offers a VUL plan called Protect Your Goals, that only requires a minimum of Php 500.00 monthly. It is a plan that has a goal of growing your money to a million (Php 1,000,000.00) in a span of 10 years if you can consistently save Php 5,700.00 every month. In addition, this plan also provides life insurance that covers 125% of the premiums paid.

2. SSS WISP Plus/Pag-IBIG MP2

SSS WISP Plus and Pag-IBIG MP2 are two of the most popular voluntary forms of investment programs in the Philippines, which offer affordable investment options that start at Php 500.00. Tax-free earnings and guaranteed returns are some of the benefits of these government-backed schemes, making them the most ideal investments for beginners who are seeking safe investment opportunities.

3. GFunds

GFunds is under GCash’s GInvest feature in the app, an investment marketplace that allows very low investment amounts— as low as Php 50.00. It is managed by ATRAM and BPI Investments, Inc. under the regulation of Bangko Sentral ng Pilipinas (BSP). GFunds offers options that range in different risk appetites with ATRAM Peso Money Market Funds as the moderately conservative funds and ATRAM Philippine Equity Smart Index Fund as the aggressive funds.

4. Bonds

Bonds is a type of investment where investors lend their money to companies, corporations, or treasuries. It is considered as a low-risk investment for the reason that it guarantees a fixed return over time. Which makes it a stable and safer investment but less profitable option in comparison to stocks or other high-risk investments.

5. Mutual Funds

Mutual Funds is a collection of multiple investments from different investors who are aiming to diversify their portfolio of stocks and bonds, managed by professional fund managers. It is a suitable investment for beginners as it only requires a minimum of Php 5,000.00 to invest, moreover, investors can leave the decisions to experts making them exert less and prevent unwise decisions.

6. Unit Investment Trust Funds (UITFs)

Compared to mutual funds where investments are being handled by a specific expert, Unit  Investment Trust Funds or UITFs are managed by banks while also under the supervision of the BSP. The investment requirements for this range from Php 5,000.00 to Php 10,000.00, and what’s good about it is that it also provides a diversified investment option handled by banking professionals.

7. Stocks

This investment is ideal for beginners who are interested in buying shares in a company, which makes you a part-owner of a portion of the company’s profits and value. While Stocks is considered to be one of the riskiest investments, it has the potential to gain high profit especially if you are committed to invest for at least five years. And you can start venturing with a minimum investment of only Php 5,000.00.