Where to Invest Money to Make it Grow

Here are different types of investments where you can invest your hard-earned money.
IMAGE Unsplash

After understanding the difference between saving and investing, the next question to answer is where to invest money so it can grow and work for you. Take it from Warren Buffett, the third richest person in the world: “If you don’t find a way to make money while you sleep, you will work until you die.”

On this page we list options you can look into where you can invest your hard-earned money and make it grow.

Here's a quick summary of where to invest money:

  • Stocks
  • Bonds
  • Pooled funds
  • Foreign exchange
  • Cryptocurrency 
  • Real estate

1| Stocks

Ask other people for advice on where to invest money, and one of the most common answers you’ll probably get is to put it in stocks. These investment vehicles represent ownership of a company, which is given a value by various factors relating to the company and the market in general.

Stocks are bought and sold—or traded—in a stock market, which in the country is called the Philippine Stock Exchange (PSE). As stock prices change frequently, investors can earn large profits by buying stocks at a low price and selling them at a higher price. However, those frequent price changes also mean that investors are more likely to lose money from investing in stocks as well.

2| Bonds

If stocks sound too risky, then bonds may be the right investment vehicle for you. Both private companies and the government issue bonds when they want to raise funds for a specific project. When investors purchase these bonds, they technically lend their money to the issuing company or government, which is then returned to them with a set interest rate.


As the amount of money one earns from bonds is fixed, it is one of several fixed-income investments. While that makes bonds less risky than stocks, it also usually means that bonds have a much lower return on investment (ROI) when compared to stocks and other riskier investment vehicles.

IMAGE: Unsplash

3| Pooled funds

Choosing the right stocks and bonds to invest in requires extensive research on the companies offering them. With pooled funds, industry experts—or the fund’s managers—will take care of that for you, as investing in pooled funds is similar to entrusting your capital to these managers, who then aim to maximize your returns by choosing the best vehicles with their expertise. Of course, their expertise doesn’t come for free, so investing in pooled funds will have more internal fees when compared to directly investing in stocks and bonds.

Two of the most popular types of pooled funds are UITFs, which is short for unit investment trust funds and are usually offered in banks, and mutual funds, which are offered by various financial institutions. A third type of pooled fund, the variable universal life insurance plan or VUL, integrates investments with life insurance.

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4| Foreign exchange

Similar to how stock prices change frequently, the exchange rates between different currencies are also volatile. That is, investors can also earn profit from foreign exchange trading by buying low and selling high.

Investing in the foreign exchange market involves speculating on exchange rates and the frequent buying and selling of multiple currencies. However, that high volatility also means that foreign exchange investing is also very risky, in that there’s a high chance that investors will lose money with this vehicle.

IMAGE: Getty

5| Cryptocurrency

If you’ve heard of Bitcoin, then you’ve already been exposed to cryptocurrency, or virtual decentralized tokens that are also given value. While cryptocurrencies were originally intended as alternatives for various financial activities, the volatility of exchange rates between them and fiat currencies—the term used to refer to the pesos and dollars we’re familiar with—presents opportunities for profit, becoming an alternative investment option.


However, the price changes in cryptocurrencies are much more significant compared to stocks and foreign exchange, which means they present an even greater risk of losing money. Also, unlike the other investment vehicles mentioned above, cryptocurrencies operate outside of the formal financial market (i.e., banks and financial institutions), so investors must be extra cautious of illicit activities when dealing with them.

6| Real estate

The five investments listed above all require only several thousand pesos minimum to start investing in them, which can’t be said for investing in real estate. The millions of pesos one needs to put into owning a property may sound unappealing for some investors, but for many, real estate presents one of the most attractive options for growing an investment.

IMAGE: Pexels/Nadine Shaabana

That’s because the country’s real estate market has become more and more valuable as the years go by. Aside from the usual buying low and selling high strategy, real estate can also be rented out and be made a continuous and more gradual source of income.

7| Et cetera

The list doesn’t stop there—there are a variety of options on where to invest money. And these options aren’t limited to those provided by banks; more adventurous investors can even try putting their money in farm products, Legos, and wine if they want a more unique approach to investing.

Whatever you choose, these options all serve as opportunities to grow your hard-earned money. It’s important to study each one of them, as well as the many other options that aren’t mentioned in this list, and choose which one is best for you.

IMAGE: Unsplash

Choosing where to invest

Choosing where to invest money is a matter of deciding how much you’re willing to invest, how much risk you’re willing to take, and how long you’re willing to put your money in these vehicles. An investor who wants to grow his capital as much as possible regardless of risk would choose different options from one who wants to make sure he plays it safe.


How to invest money

You'll need to open an account at a broker that deals in investments in order to get started on your investment portfolio. Brokers tend to specialize in different investment vehicles. For example, there are stock brokers and real estate brokers. Luckily for everyone, more and more brokers are going online due to lockdown. You'll be hard-pressed to find a platform that deals in all investment vehicles as it's better and healthier for the broker if they focus their expertise on one thing. 

Where to invest money in 2020

The stock market. Many experts will tell you that the best time to invest in the stock market is when it's down. There is opportunity in crisis, and investing while stocks are cheap due to the pandemic will almost 100 percent guarantee returns in two or three years when the Philippine economy rebounds from this recession. 

Where to invest money in the Philippines 

The Philippine Stock Exchange is where everything happens, but there are more than 20 accredited stock brokers for everyone from the new investor to the seasoned trader. Ten of these brokers have gone digital, meaning you can email them to set up your account instead of going to their office. 

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About The Author
Lorenzo Kyle Subido
Lorenzo Kyle Subido is a staff writer for Esquire Philippines.
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