Investing 101: Learn the Basics of Investing

​Investing is an important part of prudent financial management.

​Investing is the process of buying assets that increase in value over time, with a goal of generating income or selling for a profit.

Why should I invest?

Investing way to earn returns and meet your financial goals.

Over the long term, you benefit from higher potential returns than you get from a savings account, allowing you to use your money to build up your assets over the years.

Investing can help you beat inflation.

While saving is important, money held in cash or savings tend to lose value because inflation reduces their buying power over time. By investing, you can protect the value of your money as the cost of living rises.

Investing contributes to the development of the capital market.

Developing the capital market is key to generating economic growth. As more and more people invest, the investor broadens the supply of capital within the market and facilitate capital market development.

Investments by Type of Income Generated

Fixed Income

Provides regular or fixed interest payments

• Treasury Bills
• Treasury Bonds
• Corporate Bonds

Variable-Income

Potential returns vary and are not guaranteed

• Unit Investment Trust Funds (UITF)
• Mutual Funds
• Stocks

Investment Instruments

Government Securities

• Treasury Bills
• Treasury Bonds

Pooled Funds

• UITFs
• Mutual Funds

Equity, Debt, and Security

• Corporate Bonds
• Stocks

​T-Bill

Short-term Maturity (<1 year)

• Debt of PH Government
• Sold by Government Securities Eligible Dealers (GSEDs)
• Buy at discounted rate from face value

T- Bond

Long-term Maturity (>1 year)

• Debt of PH Government
• Sold by Government Securities Eligible Dealers (GSEDs)
• Yield seen in coupon rate
• Redeem quarterly