How to become a Millionaire in the Philippines in 5 Years

How to become a Millionaire in the Philippines in 5 Years? Can a Taho vendor become a millionaire in just saving P2000 periodically? Can a regular employee who earns 10,000 to 15,000 a month become a millionaire in 10 years? Can you earn 5 million pesos in 5 years? The answer to each question is YES. Take note networking and is not involved on this. I’m gonna share about becoming a millionaire here by investing in stocks using the Peso-Cost-Averaging method. There are other ways to earn millions but I’m NOT gonna talk about the ‘others’ here.

How to become a millionaire in the stock market?

Why invest in stocks?

Yes, invest not trade. There’s a difference between the two. I’m talking about investing in stocks for a long term here. Like 10 years or more. Trade is buying and selling stocks in a day or few. Investing involves long term. If you will be investing in stocks every month for let’s say 10 years, you’ll surely accumulate millions of pesos because your fund will grow through capital appreciation and dividends.

Time is Money

To understand it better, imagine you have an apple seed and you will plant it now. After many years, the seed will become a tree and will bear fruits. It will extend more branches and bear more fruits year by year. Soon you can have thousand of apple trees. Imagine the profit you have earned after few years. Time is money.

time is money

To understand it more, speaking of Apple, do you know the traded stock price per share of Apple before iphone came along on June 2007? It was trading around $200. In March 2013 it was trading around $444 and it was even trading around $700 at some point in September 2012. If you had hundreds of share and you do the math, you gained so much.

This kid has an ipad and wants some more....
This kid has an ipad and wants some more….

To get it even better, for example you became one of the major stockholders of Jollibee and owns now 10% of capital and Jollibee was worth 2 billion that time. After 10 years, it expanded globally and now worth 20 billion. Hey, remember you own 10%?  That’s 2 billion now. That’s just an example. See the stock chart of JFC (Jollibee Foods Corporation) below

stock chart jollibee

JFC Stock Chart (5 Years) taken from Bloomberg

Ok, I’m just trying to make a point there. Time is the most precious asset and choosing the right company to invest with is so important to earn profit in the future. Don’t just invest, be part of a huge company which will obviously be here after 10 years or more.

Another example why time is money:

sss gsis retirement

Why do we contribute to the SSS or GSIS every month? Simply because to have a generous retirement fund in the future. The more years of contributions, the more our pension would accumulate. It’s kinda same thing with investment earnings through compound interest. As Einstein said,

Compound interest is the greatest mathematical discovery of all time.”

In pension, age is a big factor because your pension will be computed based on your CYS (creditable year of service) and some other factors like monthly salary or contributions.

So time value of money makes sense there right? The earlier you started investing, the more you will receive in the future. If you still can’t understand it, I suggest have a short break and indulge with Jollibee hot-fudge sundae. It makes my brain work well…perhaps it could do the same somehow. Besides, I have stocks at Jollibee (smiles).

Why Peso-Cost-Averaging?

  • Because you don’t have to monitor the market constantly and you’re not an expert
  • Because it’s not too risky
  • Because reality is – trading in the stock market is dangerous. One day, economic growth could be amazing; the other day there could be crisis. In order to avoid losing your money and risking it, choose investing in stocks by using the Money-Cost-Averaging method. We call it peso-cost-averaging here since peso is our currency.

Peso-Cost-Averaging method involves investing a fixed amount of money at regular intervals over a long period of time. Example, you set aside a portion of your income, let’s say P5000 every month in a period of 10 years. You use that P5000 to buy stocks from a certain company that you believe will still be performing well after so many years. Companies like:

  • Ayala Land, Inc.
  • SM Prime Holdings, Inc.
  • Jollibee
  • PLDT (TEL)
  • BDO

and many more. Choosing the right company is so important. Make sure you practice buying your stocks regularly from the chosen company regardless of the stock price. Choosing the right company will give you high returns in the future.

peso cost averaging method stock market

This graph demonstrates how peso cost averaging works. Whatever the status of the economy, whether stocks price are high or low, buy still and keep practicing the PCA, you will profit anyway.

2 Ways to Invest in Stocks using the Peso-cost-averaging Method

  • Via online broker

Nowadays, we don’t have to call someone to invest or buy stocks from companies participating at the Philippine Stock Exchange. We can do everything online. Just choose your Online Broker and open an account with them. It’s so easy and much convenient. See the accredited online brokers in this page. BPI Trade and COL Financial are one of the well known online brokers. Personally, I follow the stocks from DailyPik coz I find them so effective and profitable. You can also choose brokers’ Easy Investment Programs that use Peso Cost Averaging or if you want, just open an account and practice the method yourself.

  • Via UITF Equity Fund or Mutual Fund in Equity

Some banks like BDO offer Easy Investment Plan through UITF Equity Fund. That kind of UITF involves stocks. With this route, your investment is handled by a fund manager which monitors everything. They are experts and professional fund manager meaning they are already familiar with the economy and the market.  They have their smart strategies for good results. Holding companies are also very good. You can always see your Equity Fund Performance Report every quarter anytime.

Mutual Fund in Equity is also another way to invest in stocks as it also focus on stocks. Know more how to invest in mutual funds in the Philippines.

Now answering the questions one by one:

Can a Taho vendor become a millionaire in just saving P2000?

taho vendor millionaire

Let’s say a Taho seller earns P300 a day and he works 26 days a month. That will give him 7,800 a month. And he may have a family to feed and support so let’s say he could just save 2,000 a month. If he could invest his 6,000 every 3 months regularly for 20 years, our Taho seller can surely have approximately 5 million or less. Since some online brokers require minimum of 5,000, he could just invest 6,000 in the stock market every 3 months and practice that up to 20 years. So the answer is YES. If you don’t believe me, you better read Bo Sanchez and learn the ways how her maids invest in the stock market.

Can a regular employee who earns 10,000 to 15,000 a month become a millionaire in 10 years?

Let’s say your salary ranges from 10,000 to 15,000 a month. You less your expenses, maybe 5,000 will remain. If you are a shopaholic, please stop reading this. If you love buying the latest gadgets and just earn this salary range, please forget about this. If you are not really serious in saving money and are not disciplined enough, just try something else.

Literally, 5,000 a month for 10 years would give you 600,000 if you save them on hand. If you save them in a bank, they would earn interest but that is not much. If you want to earn millions out of it, invest your 5000 a month in the stock market. If the Taho vendor earned less than 5 million from his investment, what more you? 🙂 So the answer is YES. Take note, time is money. If you want to earn more millions, extend your target period from 10 years to 15 years or more. How to become a millionaire starts with your mindset.

how to become a millionaire in the philippines in 5 years

Can you earn 5 million pesos in 5 years?

I assume now you know the concept of this thread. I assume you are not a Taho vendor and you are earning more or double or triple of those salary ranges discussed before. Maybe you are an OFW so your salary when converted to pesos will amount to hundred of thousand every month. 5 million pesos in 5 years is so possible for you then.

If you will still try the PCA method 40,000 every month for 5 years could give you close amount to 5 million. But then again, I expect you are earning more than the average bracket mentioned before so hey, I’m sure you know other channels on how to get your millions in just a short time – not just thru stocks but also thru business, interest income, trust funds and other vehicles.

investment stocks computation sample

Assuming the examples above grow by 10% per year. This is only an example.

How to become a millionaire in the Philippines in one year?

How to become a millionaire in one year? That question is easy for you to answer now.


  • The earlier you invest, the more money you will earn in the long run
  • Time is gold and time is money.
  • The key to Peso Cost Averaging technique is choosing the right company where you will buy stocks, choosing to invest long term and following your chosen time and amount to invest regularly.

Remember, money is not everything. There are far more important things than money – love, friendship, health and faith in God. Have all of them and you would be happy a billion ways.” – Fehl

Want to start investing in the stock market? Go to our Stock Market Tutorials and Complete Guide page.

About Fehl Dungo

Licensed Career Service Professional, tech investor, founder of Philpad, and published author of a poetry book at Barnes&Noble.

386 thoughts on “How to become a Millionaire in the Philippines in 5 Years”

  1. hello good morning. May tanong lang po ako, what if nag invest ako ng 5000/month then after 3 months eh hindi na ako makainvest dahil natangal nako sa work anu pong mangyayari?

    • Hi, Jon 🙂 The present value of your investment will be equal to the present value of stock (total shares X the price of the stock)

  2. Hello Ms Fehl,

    I guess I found the initial answers to my first question to you. Ok lets say I am a taho vendor making 500 peso/day thats 15,000/month now I want to invest my 5000 peso in a stocks market. So my question now to you do you know any online broker that has a long term portfolio and a good track record of companies in the Phil stock market that I can sign up in order for me to invest my 5k/month that will give me lets say atleast 7% or more return/year? I hope we can chat in the future i am really interested to learn how to invest in the PSE in long term.


    • hi Fehl,

      I came accross your website and it’s so informative! I started investing just last year using PCA. I hold 3 stocks, MEG, ALI and SMPH investing qrtrly for Php15k. I have a question hope you can shed light. I am wanting to sell MEG so I can only focus and have more budget with just the other two. Do you think it’s a good idea po? Salamat.


      • Hi, Michael 🙂 Congrats with your investment! Yes, you can sell your MEG shares and realize the profit already, then buy other blue chip stocks. You can rinse and repeat the strategy as long as you choose the “best” companies that always grow over time. God bless!

      • Salamat sa reply. I’m just thinking not to add any more stocks as I have MF as well (xpeif).. But with only 2 stocks will I get the benefit of the PCA in the long run or is it preferred to have more than 2?

  3. For US based OFWs, residents or even citizens, there is one best way to invest your hard-earned money, and that is through putting it to an indexed universal life insurance that covers not only your life but all unprecedented life events such as accident, chronic and terminal illnesses. At age 60, if everything is good (you have not used the money in any of the mentioned events) then you have the option to convert the policy into a lifetime income based on the accumulated cash value.

    • Hi Jill, How can we chat? I will disagree to this.. that is really a bad/wrong way to invest your money if you are in the US.

  4. i’m from davao city, i want to invest my question is how and where to address this transaction here in davao city. Please help me.

  5. When you invest or trade in the stockmarket, invest only monies you can afford to lose! You will have losses in the stockmarket no matter how good a stock picker you are. I suggest saving a sum you can comfortably risk in the stockmarket. Peso cost averaging is actually a bad idea because stocks can go down for a long period of time and even go bankrupt. You do not add monies to a losing position. A better strategy is buying stocks establishing new highs and trading it and putting stop losses on that stock. I think you do not have the stop loss feature in the Philippine Stockmarket so, you have to use a mental stop or write it down in a piece of paper and stick it to your computer. It is the price you will sell your stock if it is hit. Buy high and sell higher! It is called trend following here in the US and I believe can be used profitably in the Philippine Stock Market as well! You only buy stocks going up and establishing new highs! Hedge funds with billions make a lot of monies doing the same thing here in the US. For the record, I trade stocks and options in the US stockmarket. I learned on my own and made a lot of mistakes. Learn how to trade stocks and I believe you will be better for it!

  6. Good day po..tanong lang…let say bumili ako shares ko sa stock sa araw ng execution date..then kinabukasan sell ko din agad..entitled din po ba ako sa dividend?thanks po..

    • Nope..i have that experienced before. Not owning the stock on declaration will not earn you dividend. Its a basic one.

  7. Thank you so much for this informative post!
    I have a question. I have 2 years left of college and I want to have at least 500k waiting for me after I graduate. I’m investing long term. How much should I invest monthly? Thank you so much!

    • Hi, Thierry.

      Following are the required monthly investment amounts depending on the projected rate of return per year over the next two years:

      @ 10% return per year – P18,750 monthly
      @ 7% return per year – P19,357 monthly
      @ 5% return per year – P19,770 monthly
      @ 3% return per year – P20,190 monthly
      @ 0% (just keep it at home) – P20,833 monthly

      You may have noticed that the differences are not that big. It’s because 2 years is too short. If you are investing for the long term, you should be looking at at least 5 years.


      • Hi Thierry,

        I have few question that i need to be certain.

        Let say, i have 2,000,000 and i want to invest in maybe for 2 years but i want to withdraw the interest every month. What should i do and what investment would you advice for my needs and how much a maximum interest can i get.

        Thank you.

        • Hi, you may invest on Retail Treasury Bonds, fixed income will be given to you every quarter. The longer the maturity, the higher the rates

  8. That is sound advice…BUT the problem with this hypothetical investment plan is that mutual funds dont earn 10% or more anymore. Back in the 80’s yeah, but now? It’s really more like 1 or 2% if you’re lucky.

    I’ve been invested in different mutual funds for the past 3 years and so far I’ve averaged 0.65% return on my investments.

    So No, you cant be a millionaire with initial investments of P5,000 per month. Besides, who saves P5,000 pe month these days?

    • I have to say the Golden Era for Equities has passed already but that doesn’t mean it won’t happen again. The concepts above can still work but we should not have big expectations

    • Investing in Stocks and Bonds would be an alternative from Mutual Funds. If you want to know more on how AXA does its Investment Portfolios, Feel free to message me

      • Magkano ang percentage of ROI ng AXA at papaano mag-avail? I heard and see AXA like life insurance. i don’t know meron po pala na investment sa stock market at bonds.

    • Ive found that investing directly on stocks using online brokerage has more chance of growth than leaving it in a mutual fund though it is riskier. I have just been investing for 9 months thru BPITrade directly to the PSE and my portfolio has already gained by 20%. Do your own research and learn tips from the experts. Financial knowledge/experience can minimize the risks.

    • 10% annualized return is still possible. Back in May 2016 the 3-year return of many stock mutual funds were in negative territory. A lucky few managed a measly 0.7%-1.5%. However, as of August 1, 2016, the 3-year returns of the best performing stock funds have gone up to more than 6% per year. And if you look at the 5-year annualized return of the top three stock funds, the rate is 11%-12% per year.

      So yes, 10% annualized is still very much possible. Hold your investment long enough and you will realize better returns. Three years, to me, is somewhat short.


    • There are different types of mutual fund i guess you are investing in bonds or government securities kind of mutual fund which offering low risk…

  9. Good morning ms Fhel,

    ganda nmn ng page mo nakakainspire at parang gusto ko na agad maginvest, isa po akong OFW pabakasyon po ako ng October 2016 balak ko po mag open ng account sa BDO at invest pwede po ba na mag laan ako ng isang bagsakan na 100k and leave it there for 3years (alin po maganda kuning investment na mas malaki ang kita yung Mutual Fund or UITF) i need your advise madam para po mas malinawan ako sa papasukin ko na investment.

    Maraming salamat po at nawa ay palawigin pa ng Panginoong Dios ang buhay nyo na nagbibigay pag-asa sa mga taong naghahanap ng mapaglalaanan ng kanilang pinaghirapan na di masayang kundi ay lumago.

  10. hi ms.fehl, been reading your blog for the past few days snd nksksinspire talaga..though my mga paghihinayang ako that i did not start early..can i clarify if i use the PCA for 10yrs buying stocks without selling it would there be a problem selling it coz sobrang laki na? hope mclarify nyo po..thanks and Godbless

    • Hi. Thank you. I don’t see a problem selling, check out the daily transaction at your broker’s platform to have idea how big do you want

  11. Hi po! bago lng po aq at Gsto ko po sana magregister sa COL Financial, ung 5k/month ung longterm PCA.tanong ko lng po,every month po b ako bibili ng shares s
    napili ko pong company katulad ng JFC??? at gaano po katagal ang long term investment??pg tumagal po ako ng 10years kilangan ko po ba ibenta ung shares ko para makuha ko ung ininvest ko lahat lahat??? salamat po ms. fehl matulungan nyo po sna ako about d2.

    • You can schedule the 5k monthly in Col Financial. You will just look on how to do it using the Col Financial website. But be sure that you can put 5k monthly in col financial. I usually do it using my BPI account where in I schedule 5k to be transfer monthly from my BPI account going to Col Financial. Try iy.

  12. Hi Good day.! Ms fehl Ask ko lng po f pwde po ba 2 or 3 compnay na nsa blue chips stock ayun nag pag iinvesan ko for 10 to 20 years tnx..!

  13. Hi fehl what happens to my earnings in stock market will this be rolled over every month to buy more shares for the same stock investment? Or can i use my earnings to buy other stocks to diversify my investment? Thanks

    • Hi. It’s up to you how will you gonna spend it but I recommend buying other quality stocks that are cheap at present and selling them when they reached your Target. Keep the money rolling

        • Every investor has his own choice of target kasi iba iba tayo ng risk profile and objective so iba iba din ang Target. Your Target can be:

          Target Price (of the stock)
          Target Profit (% gains)
          Target Term (years)

  14. Hi fehl… i am interested to enter this kind of business under peso cost averaging investment.. may i know how much starting capital in its share? to whom i approach to make my plans possible..

    • Hi. You must decide what investment suits you. Is it mutual fund, stocks, or UITF. Then invest monthly or periodically and aim to do it for long term

  15. Hi Ms Fehl,

    I am an aspiring young professional with mind in business, and heart in passion and arts. I am honestly enlightened by your financial techniques and guides, cheers.

    I just wanted to ask something, I’m 21 years old and just got my first job, I am seriously considering doing the col starter investment plan, but as you have mentioned, investing on stocks is for long term. What if I wanted to get gain something within the span of less than 3 years, are there other alternatives?

    I mean, I want to build my wealth for the future; but is it also possible to have an alternative, that while I’m investing for long term, I also have something that I could get gains within a year or 2, and maybe use the profit there for establishing an alternative form of income aside from employment?

    I am also scared because if my long term investment is going to consume 5000 a month, and then I am also investing on a short term basis, I am doubtful that there’ll be anything left for my fixed expenses.

    Hope to hear from you soonest,

    God bless and more power.


    • Hi. Yes, Equity Funds from Mutual Funds and UITF are also suitable for 3 years. You’ll likely see income already for that period. They maybe risky but they are professionally managed by investment experts. Invest regularly and you can redeem in 3 years or so, or any time you plan to. The longer, the better

    • My father and lolo were business men, shop keepers in USA. Middle class. Six children. I leaned 3 things that have turned out to be true. I am now 67, little time left for me.
      1) NEVER use your HOME as collateral…NEVER!
      2) Figure out, to the Peso, how much money you will need to open your shop, then double it. It has worked out EXACTLY for me seven times in my life.
      3) You will never get rich until you have lost it ALL, 3 times. It is in the losing that you learn you best lessons, and never make them again. The good times are the SMALL REWARDS, for the LOSING you went though to make you who you are TODAY>..never belittle your lose, they are you BEST TEACHERS.
      In the PSE, five years ago, I started out with 350,000 P…I know have 125,000P. ARE MY LESSONS LEARNED? I feel I have GROWN, but lessons MUST BE APPLED, REMEMBERED.
      Maybe you will have 5 million in 50 years, but what it the VALUE of that money in 50 years. MY mother was forced to sell out family home 40 years ago…for $20,000…a good price. I just saw our same home on the market for $450,000. It will now take me 20X the money to buy the same house as I grew up in…My mom had a teachers job, starting 4800 US year…40 yrs ago…it now pays $50,000 starting pay…same job. So when you go for million in 50 years, YES, you can, and you WILL if you work hard at it…but…WHAT IS THE VALUE OF THAT 5 MILLIION in 50 years?. Maybe you got NOWHERE. THINK ABOUT IT. the VALUE of your money is SHRINKING in VALUE each year by inflation…the IMF world wide money people tell us that the US DOLLAR has lost 97% of its VALUE, BUYING POWER, since 1930..what was ONE DOLLAR 86 years ago. Now buys 3 cents worth of product.
      THE RICH GET RICHER, the POOR GET MORE POOR. In the past 8 years, in the US, the largest money shift has taken place…30% of the wealth of the nation has moved into the RICH PEOPLES HANDS, and left 30% less for the common citizen. Now, 1% of the people in USA hold 60% of all the money…more Millionaires have been made in the past five years than any time in history…yet, 5 as many people have become POOR.
      The Catholic Church of Manila is now the richest Catholic Church on earth. If it were a nation, it would be the 17th largest valued country in the world. They did not get that away by GIVING the money away. IN Yolanda…the Manila Catholic Church GAVE NOT A SINGLE CENTAVO to Yolanda victims. Very much against the teaching of Jesus Christ…who tells us that what you GIVE, you get returned to you 10X…what you TAKE, you lose 10X over time.
      As President Nixon used to say years ago…’get em by the Balls and their heads and hearts will follow.
      Poverty, IS NOT ABOUT MONEY>
      Tithing is NOT ABOUT MONEY…10% of what GOD HAS GIVEN YOU, is to be GIVEN BACK TO COMMUNITY…God has Given you TIME>

      • Very well said and thank you for sharing. If only people spend more time having conversation with people like you, I think life would be better. God bless!

  16. nakalock in ang pera ko ng 5 years? pano kung 6 months lang ang gusto ko for now???? may chance ba na lumago ang pera ko? pano -kini-claim ang perang lumago?

    so pano yun, 5k every month ako maghuhulog? tama ba?

  17. Hi Ms.Fehl,

    I’m a beginner po in investments and still studying its foundation. Would you advised to invest in UITF,MF and to buy stocks freely ng sabay sabay? Thanks po and God bless you more. Dame nyo po naeenlighten sa blogs nyo, especially to those who are willing to learn. 🙂

    • Hi, thanks for visiting. I advise to start with either MF or UITF then study about stocks. If you’re ready then invest in the PSE. You can also follow our guides at We share about tips in investing stocks and MF there

  18. I just turned 20 last March and I’m already working. I’m into our family business. Aside from our business, I really wanted to invest into other business. I want to try the PCA method and would like to invest sa JFC. Can you help me?

  19. Hello madam. I have here a series of questions 🙂
    1. If I’d do the PCA, is it advisable that I buy twice the usual number on September to October to take advantage of the market. I plan to invest monthly. Or should I just stick the same amount so that it won’t disrupt the routine?

    2. For example, I’d do the EIP for for a company for 3 years then I’m happy with my stocks, then can I stop buying and hold them “forever” or no? Situation: The stocks are playing well.

    3. Is it hard to withdraw money from Colfinancial?

    4. Which is better fund manager or broker?

    5. Are equity funds encouraged for starters?

    6. Suggestions for short term financial plans.( 6 mos-1 yr)

    Thank you.

    • 1. It’s still your decision. Your profit will still average. You can take that opportunity to buy more shares since the prices of stocks are lower.
      2. Yes, you can hold them and keep them until you want to keep them
      3. It’s very easy in my experience
      4. Fund managers are different from brokers. Fund managers manage the fund so that they will perform well. Brokers get clients or investors.
      5. Equity Funds are encouraged for all investors who understand and can take bigger risks
      6. Money Market, Bond Funds, Balanced Funds

  20. Hello.I’m still a student and I plan invest in stocks. However, I’d just like to know if investing in stocks would also mean that I should pay taxes annually? I am of legal age atm. Also, I’d like to know which one is better, Colfinancial or BPI? Thank you

    • Hi. If you’re into stocks listed in the PSE, taxes are handled and reported by the stockbroker already thus they require TIN when opening an account. I can only comment on COL as I’m using it. It’s been excellent and I like their research and updates. BPI is also great according to users.

  21. Hi Madame Fehl,

    I am an OFW working here in QATAR and I am not growing any younger. I have read your advises about investing on PCA and I am very much interested. Please advise me on some points as follows;
    1. If I want to invest for a long term of 5 years and on the end I want to earn 5 million pesos, which company would you recommend and how much amount would I use to buy every month to reach my target;
    2. Suppose I have already chosen the company(the one you will recommend), Is it advisable to get one single stock for the whole 5 years or I could buy different stocks under the PCA to reach my target; and lastly
    3. Could my monthly be variable, I mean instead of a steady P5,000 per month or P10,000 per month, It could vary depending on the availability of funds. Maybe P10,000 for the first month, P5,000 for the second month and so forth.

    Thank you in advance for your great advise. God blessed you to be a great blessing to others.
    Have a nice day.

    • Hi. Thanks for visiting. 1. There are many good companies to invest with but the decision will still be from you, as how much do you believe in that company. Supposed the value of the stocks grows around 15% per year, you need to invest 60,000 every month to make more than 5 million in 5 years. Of course that is a very conservative approach.
      2. Like I said, the final decision and strategy will be on you because you are the investor. Yes, you can invest on different stocks your choice 🙂
      3. Yes, you can do that in the stock market. God bless! 🙂

  22. hi Fehl, stocks prices are very high nowadays (psei at all time high?) do you have idea if there’s a correction coming? from your experience do prices go down or up during election year… i’m waiting for prices to go down before buying… is this a good idea? thanks a lot!

    • Hi, PSEI is going down these days so prices are lower. Market forecasts say it won’t move up faster anytime soon. It’s because of market correction and high interest rates

  23. Hi Fehl,
    If I invest say in Jollibee or Ayala Land through PCA 30K per month just for one year (360-400k total investment), how much return do you think I will gain? I know its not long-term, I am just trying to save for my masters degree.

    • It depends upon the performance of each company. No one really knows but estimated 1-year return for ALI is around 28% while JFC around 30% looking at Bloomberg right now

  24. Hi Fehl,

    Salamat at unti-unti ko na din naiintindihan ang concept ng investment. Pero ang diko na lang naiintindihan ay kung paano related ang sinasabing compounding interest ng investment sa PSE? Karaniwan kasi ibinibigay sa mga examples ang rate of return compounded annually, meron bang ganoong concept sa stock?

    Thus, I only learned investment dealing with the appreciation of stocks and dividends and yet no compounding interest being mentioned here.

    Thanks in advance.

    • Compound interest is a very broad subject and you must not base your stocks on it. I only mentioned it as an example how it relates to time value of money and how something appreciates in value over time. Stocks in the stock market are very unpredictable.

      • Ma’am Fehl, i also have read about compounding and simple interest upon investing in the stock market but there is no further explanation on how to get profit on this. If my investment will earn interest, either simple or compounding, how often it will be? tnx

  25. Can you blog about variable life insurance as an investment? I invest in stocks and variable life insurance and I have got good returns in 2 years. A lot of people don’t seem to know that it is also investing in government bonds, Philippine stocks and managed by professionals. Thanks.

  26. Hi Ms Fehl, I am confused about how compounding works in instruments like stocks. And is it true that compounding does not work in UITFs? Please enlighten me. Thanks.

    • Compounding is a very broad term and it will only confuse you if you base profit of UITF to it. UITF profit is based from the UITF performance. There is no specific percentage of compounding rather your gains will be based from NAVPU which is of course based from the performance of the fund

  27. Hi Ms Fehl! I have read on some other blogs that UITFs unlike stocks don’t have compounding interest. Is that really true? And some says the compounding in UITFs does happen yet it is “within”. I can’t recall the exact phrases. I am now confused. Can you enlighten me?

  28. Hi! I’m so interested and desperate now in investing stocks. Actually, i’ve been searching for articles about stock investments to gain more knowledge and, of course, to earn profit. But the thing is, I’m only 18 years old, will i fit with this kind of business? i have no stock market experience yet, but im eager to involve in any transactions about stock market, especially for good investments. any thoughts? what should i do first?

    • Hi. Yes, you can start investing stocks now. You’re 18 and you have so much time to earn more than those who didn’t do it earlier 🙂 Read all our guides at the STOCKS tab to how to start. God bless!

  29. Hi fehl!

    I’ve been reading your articles and I’m very interested in investing. . However, I would like to know more about investing before jumping into it. . Do you have an in depth article about PCA? If I will chose COL as my online broker, what are the requirements needed to start? What kind of documents do I need to prepare?

    Thank you so much for giving us a lot of value through your articles. . I love them so much. . I read one article per day. . 🙂 Take care always and God Bless you. .

    Have you read about intelligent investor by Benjamin Graham? It’s the same book that warren buffet studied for many years. .

    • Hi, yes we shared PCA and COL requirements in opening an account and easy guides on our STOCKS page. You can go there by going to our STOCKS menu. Thank you and God bless. 🙂

  30. i dont know how to invest when to start but i’m very saving man when it comes in money. sorry for me ucpb shares can’t claim coz dont have insurance person who holds stockholders.

  31. Hi Ms Fehl. Way back 2013 may natanggap na check (actually 2nd check na nya ito) ang mother-in-law ko galing sa PLDT. Pinagtatawanan pa nga namin at binibiro ang mil ko na share holder cia ng PLDT. Wla naman dw kc cia matandaan na nag-invest cia dito.

    My question is pwde pa kaya namin malaman if active pa ang share nya sa PLDT? Pano kaya namin malalaman kung cno ung broker na may hawak ng acct nya? TIA

  32. Some of your information regarding Apple stock is incorrect. After checking NASDAQ, Apple share prices never even breached $120 at their highest close in Nov 2014. In March 2013, the highest close was $69.

    • Yes, because those were the prices of Apple stocks when I wrote this post. I didn’t put the exact figure but I mentioned “around”. I remember it went around 700 on Sept. 2012

  33. Hi Fehl! Thank you for your very informative blog. I invested in Security Bank’s UITF Equity Funds. I heard that Security Bank was the best performing bank on Peso Equity UITF funds last 2014. However, i haven’t noticed anyone commenting about Security Bank. Have you heard about this bank’s performance? I am aware that these kinds of funds are not covered by PDIC.

    • Yes, there are comments about Security Bank’s UITF from our Mutual Funds posts here. 🙂 We post the best MF every year in Philpad. Check out the latest for 2015, it’s also posted already

  34. good article, i’ve been investing in stocks since 2005 (when i was 20). Been using PCA since i’m not into technical analysis and I never intended to trade. Started investing via citiseconline then moved to bpitrade

    Started investing monthly with the very little extra cash i had then (my starting salary in 2005 was 18,000). The best stock i bought to date was Jollibee – JFC (it was just P26/share then).

    I didn’t know much about stocks pero i loved Jollibee products and i know a lot of Filipinos also feel the same, so it’s only logical to think that the company will grow eventually, so with this very basic principle in mind, i accumulated a generous amount of shares over the years (like your advice here, i invested monthly and never stopped). Today, JFC share prices are at the P210-211/share 🙂 i have a diversified portfolio of companies, i never sold any shares since then and I plan on holding on to them til I’m in my retirement.

    My monthly income had increased tremendously (from fees from my consultancy and the income from the 2 companies i started) pero di nagbago yung prinsipyo ko of really investing monthly. 🙂 I have a diversified portfolio of investments now which includes long term government bonds and other instruments and real property.

    So yes, if you really want to get “rich”, ditch your plan of replacing your iPhone 5S for an Iphone 6 Plus and start investing (and starting a business to grow your basket of investment money)! anyway, good luck to everyone 🙂


    Fehl, Is your article based on your own investing experience?

    • Wow, congrats on starting so early. I’m sure your portfolio is looking so good right now. Yes, this post is based from my personal experience and personal lessons I learned. Cheers and happy investing to everyone!

      • Thanks Fehl! Your post is inspiring. i have my share of really bad losses pero that’s the beauty of long term investing and PCA, makakabawi ka for sure in the long run, unless you purchased a really bad company.

        Just felt that i also needed to share from experience as I really am advocating smart investing, and investing in stocks as it may sound complicated at first and very risky, pero at the end of the day, if you have the right reasons for getting in the market (investing not short term trading) e you can really beat the yearly inflation and also profit. Hindi siya kasing kumplikado as it seems. cheers!

        • Thank you Momoys. Yes, it’s all about patience and not being greedy 🙂 Why not share you experience here in a post. Would be happy to guest post you so it will also inspire many Filipinos and hardworking people. I’m sure they will be thrilled because you have invested so early 🙂 Contact me and I will assist you everything you need. Cheers!

  35. In the Philippines, you really would have to start your own business to be able to reach financial freedom. Employment is a stable, but limited source of income and usually would not suffice to really save-up. In my case, I have an online business with same coming from free classified ads site such as OLX AYOS and MYBENTA. I do not have to maintain high fixed costs, since I do not have a brick and mortar store. I suggest those in employment should also start doing business, its an additional source of income on top of their stable wage.

  36. Fehl ,

    Pano malalaman kung anong companies is the best para mag invest?
    if i only have 10,000 php
    ilang stocks makukuha ko? 10k im sure un na pnakamaliit for investments.

    please do help me i want to know more about it 10k for me is quite big.

    tsaka ung divident is 5 years pa?
    or some companies offered one year para makakuha ng divident?

    email me nman po

    thank you! your a big help

    • Hi Theo. You mean 10K a month? You can start buying 3-4 companies from the 10K every month. You’ll surely build your stock portfolio then. As to dividends, you can earn them as long as you have shares of stocks on the ex-date (can be tomorrow or any day NOT after 5 years) 🙂 Coz bluechip companies always issue dividends every now and then

  37. Hi Madame Fehl. I am interested in this investment in stock market. I am however working here abroad. Is there a way that I could invest in stocks while I am working here? Please advise how. Maraming salamat po.

    • Hi. Yes, you need to open first your stockbroker’s account. I recommend COL Financial because you can open one even if you live abroad. Go to their website and select to open COL Plus account. You can fund it using iRemit


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