Which Is The Least Risky Investment Philippines

There are often many questions asked by beginner investors in the Philippines; the common question is – which is the least risky investment in the Philippines? Unfortunately, all types of investment carry with them elements of risk. However, each individual investment has different risk levels. Therefore, low-risk investments are more suitable for some types of investors than others.

Sadly even with the least risky investment in the Philippines, there is still a possibility of losing your money. So most experts recommend only investing money you can afford to lose. With this being said, let’s take a look at which is the least risky investment in the Philippines for beginner investors.

Table of Contents

Low & Least Risky Investments In The Philippines

1. Index Funds & Bonds

If you have ever looked at the mainstream banks in the Philippines, you will see that most of them offer investment products under the umbrella of index funds and bonds. Some investors see these as low-risk investments in the Philippines for several reasons.

The main reason is that these low-risk investments in the Philippines are normally invested in low-risk areas. These areas can include stocks that have a proven track record of success and growth. But additionally, your investment capital is managed by a financial expert backed by the Philippines’ largest and most robust banking groups.

2. Low-Risk Mutual Funds

Index funds are very similar to mutual funds; however, their properties are slightly different, and we discussed more of this in our full guide on mutual funds. Nevertheless, mutual funds are a great form of low-risk investment and can be one of the least risky investments in the Philippines for beginner investors.

Mutual funds are investments in different companies in the stock market. Therefore instead of investing in one company, beginner investors in the Philippines can invest in several companies at once, which is seen to lower the risk of an investment and is, therefore, one of the least risky investments in the Philippines.

3. Certain Real Estate In The Philippines

For many investors, real estate in the Philippines is seen as a safe and low-risk investment due to the real estate value. In other words, even if the market crashes or goes down in value, the house still has value by providing home & shelter. Therefore it is likely that this type of investment will increase in the future due to its foundational value.

However, not all real estate is seen as a low-risk investment. For example, during the rise of outsourcing and call centers in the Philippines, offices became a very lucrative investment for some investors. However, due to the pandemic and other factors, many staff are now working from home, and this type of real estate can sometimes be seen as a high risk due to the change of working arrangements in the Philippines.

4. Education Investments

When investing money for beginners in the Philippines, it is often advised to invest in yourself. Because of the value of education, educational investments are often seen as low-risk investments. This is because investors can gain value from this investment and increase that financial net worth.

Of course, this is not a traditional investment such as investing in stocks or cryptocurrency; however, it is an investment that is often recommended to beginner investors due to its ROV (return of value) and the possibility of future financial growth.

5. Retirement Planning & Investing

Another common recommendation for investing money for beginners in the Philippines is retirement investing. Many financial experts recommend investing in retirement. There are several reasons why this type of investment is seen as a low-risk investment in the Philippines compared to more traditional investments.

One of the biggest reasons is due to the time of the investment. For example, if you start investing in your 20s or 30s, you have several years until retirement. During that time, the market could be highly volatile; therefore, the investment length can overcome the lows and dips of the market, which means that your investment will likely provide a fair investment return (based on historical data).

6. Some Startup Businesses

Starting a brand new startup in the Philippines is often considered a high-risk investment as many startup businesses in the Philippines fail within the first few years. However, not all startups are high-risk investments. The great thing about starting a business (compared to a traditional investment) is that you have control of the direction of your business and your money.

In other words, if you have done your market research, calculated your options, analyzing the competition, and everything else that you need to be successful, it is more likely that your business will succeed, which many entrepreneurs see as a low-risk investment in the Philippines. So, if you are looking to start a small business, take a look at our brand new article we just released today!

Investing Money For Beginners Philippines

So, where should beginner investors invest their money in the Philippines? When investing money, it’s not always about the investment; many times, it’s about the individual. Therefore, individual risk tolerance, the investor’s skills, and knowledge should be considered when investing money as a beginner in the Philippines.

Nevertheless, many beginner investors in the Philippines start investing with their local bank. Many banking facilities have full guides and free investment education for beginner investors, making it a perfect place to start. Additionally, many banks in the Philippines have tailored their investments to beginners, making it much easier to invest for beginner investors.

Whatever option you choose when looking to invest money as a beginner in the Philippines is important to consider the markets, your risk, and the future. Most successful investors spend 90% of their time researching the market and investment before investing. In general, the more knowledge and data you have, the better equipped you are to make investment decisions.