When it comes to building financial security, Filipinos often ask the same question: where to invest savings so it grows faster than in a traditional savings account.
With rising interest rates, inflation, and economic uncertainties, leaving money idle means losing purchasing power over time.
By learning about various investment options beyond just savings accounts, you can design an investment plan that matches your life goals, time horizon, and risk tolerance.
This guide breaks down common investment products, from conservative investments to growth-oriented assets, so you can create an investment portfolio suited for both capital appreciation and stability.
Why You Need to Move Beyond Savings Accounts
Filipinos are familiar with savings accounts because they are easy to open and considered lower-risk investments. However, traditional accounts earn minimal interest, often less than inflation.
Limited investment returns on savings accounts
Even high-yield savings accounts and CD rates (time deposits) only offer a fixed income for a set period, limiting investment returns.
High-yielding investment options for long-term goals and needs
While these options are useful for conservative investors with very short-term needs, those with long-term goals, such as funding a child’s education or preparing for retirement, need to save and invest in higher-yielding investment products.
Best Investment Options to Explore
While it’s a good idea to have high-yield savings accounts, there are other investments you can put your money and funds into to reach more of your life goals.
Stocks
One of the most popular investment choices is the stock market. By owning and investing in individual stocks, you are buying a piece of a company. Some are growth stocks that aim for capital appreciation, while others are dividend stocks that regularly pay dividends to shareholders.
Anticipating stock market risks
However, stock investments come with market risk. Stock market volatility can cause rapid price swings, and while the best investments can lead to high investment returns, they carry added risk.
Investors usually need a brokerage account to trade stocks and manage their funds and overall portfolio.
Bonds
For those seeking lower-risk investments, bonds are considered safer than stocks. Government bonds and bonds issued by corporations provide regular interest over a fixed period.
Corporate bond funds pool money into multiple companies’ debt, offering diversification.
Bond funds and other fixed-income instruments serve conservative investors who want predictable investment returns.
While bonds are less volatile, they are affected by interest rates set by the Federal Reserve and local regulators. When rates rise, bond prices may fall—another trade-off investors must understand.
Mutual Funds
Many Filipinos turn to mutual funds when they want to invest money without actively monitoring the financial markets. These funds pool money from people’s savings and invest it into stock funds, bond funds, or mixed asset classes.
The advantage? Seasoned fund managers handle the strategy, balancing risk profile and investment objectives to achieve investment returns.
This is a great option for new investors who want to start investing but lack more knowledge and confidence to analyze stocks or bonds on their own.
Unit Investment Trust Funds (UITFs)
Similar to mutual funds, unit investment trust funds (UITFs) are popular in the investment stock market. Banks offer UITFs through an investment account, making them accessible to first-time investors.
With a unit investment trust, you can choose between conservative investments like fixed income or more aggressive stock funds aiming for capital appreciation.
Your chosen UITF depends on your investor risk profile, investment objectives, and time horizon.
Index Funds: Long-Term Simplicity
An index fund tracks a specific market index, such as the PSEi in the Philippines. Unlike actively managed stock funds, index funds simply mirror the market, offering broad exposure to financial markets with lower fees.
For conservative investors seeking long-term goals like retirement, index funds provide a balance between growth and lower-risk investments.
They are also less affected by unexpected events than individual stocks, making them one of the best investments for beginners.
Real Estate
If you’re asking where to invest savings outside of paper assets, real estate remains a trusted choice.
It is a conservative investment with potential for both capital appreciation and rental investment returns.
Why Camella Stands Out
Camella, one of the country’s most established developers, offers more than just homes; it provides investment products designed for financial security.
With Camella communities located near schools, transport hubs, and business districts, Camella properties not only grow in value but also give families a sense of belonging.
For investors who want to save and invest in an asset that resists economic uncertainties, real estate properties such as those in Camella developments serve as a hedge against market risk.
Unlike dividend stocks, bonds, or other investments that aren’t tangible, a Camella home is a physical investment you can live in, rent out, or pass down, making it an essential part of any overall portfolio.
Balancing Your Investment Portfolio
There is no single answer to the question of where to invest savings. The key is diversification. When investing, it’s a good strategy to spread your money across different asset classes like stocks, bonds, mutual funds, and real estate.
An investment portfolio built with both conservative investments and growth stocks can withstand unexpected events such as economic downturns or shifts in interest rates. Your mix should reflect your investment objectives, risk tolerance, and time horizon.
Tips to Start Investing Wisely
- Set your financial goals. Define your life goals, whether it’s retirement, education, or buying a home.
- Know your risk profile. Determine whether you prefer lower-risk investments or are comfortable taking more risk for higher investment returns.
- Open an investment account. Whether through a bank (unit investment trust funds) or a brokerage (individual stocks), access to investment markets is key.
- Diversify. Spread your money across multiple investment products to balance added risk and potential gains.
- Stay informed. Keep track of the financial markets, Federal Reserve updates, and economic uncertainties that may affect your portfolio.
Building a Future Beyond Savings
For people saving money, the journey from deposit to dividends means learning how to invest money wisely. Whether through stock investments, bond funds, mutual funds, or real estate with Camella, there are countless investment choices to suit different investment objectives.
By carefully weighing the trade-off between conservative investments and higher-risk opportunities, you can create an investment plan that not only safeguards against unexpected events but also builds lasting financial security.
The earlier you start investing, the stronger your portfolio becomes in meeting your long-term goals.
