Where to Invest: If You Have No Time To Check Your Investments Everyday

*For this article I would treat UITFs and Mutual Funds as the same instrument but I’ll use UITFs for performance for each instruments.

 I have 3 basic criteria on advising people on where to Invest.

  1. How much is your initial investment
  2. How long is your time horizon
  3. How much involvement do you want

For This article let’s focus on

Capital Investment: ₽10,000
Involvement: Minimal
Recommendation: UITF/Mutual Funds: with UITFs / MF you wiill have Fund Managers to handle your money so no need to worry which stock or bonds to buy.

There are 4 general categories for each UITF/MFs

  • Money Market
  • Bonds
  • Balanced Fund
  • Equity

1. Money Market (Short Term) Better than Bank

Money Markets are markets for government and corporations would go for short term loans usually overnight to a period of less than 1 year. For investors our money is being used to be loaned to this market and are traded heavily. Because of the nature of this market this is tend to be conservative with (+-) 2% to 4% and very liquid.

here is a sample of top 5 for UITFs


2. Bonds (Midterm to Long-term)

Bonds are almost the same as Money Market the main difference is that Bonds has a longer tenure. Intermediate terms are for 1 year to 4 years and Long Term can be 10 or more. There are also fixed and flexible rate depending on the issuer. just like for Double Dragon which is a Fixed rate bonds:

while others are flexible just like in UITFs and MF:


3. Balanced Funds (Long-term)

Balanced funds are just a combination of Bonds and Equities. Since this is with equities  expect a lot of volatility with your investment. if you are for long term this is one of the instruments that can yield higher returns, but then it boils down to the current condition of the Philippine Stock Exchange.


4. Equities (Long-term)

Equities are investment that is focus on the Philippines Stock Exchange. This usually tracks or tries to follow or beat the index. This is highly volatile but the return can go as high as 40% nut it can go the other way around as well.