Investing can be intimidating for beginners because knowing where to start is hard.

When I started my investing journey, I followed some pioneer investing content creators and bloggers. During that time, one popular investment advice was to start investing in the Philippine stock market because it was still at the tail-end of the bull run, and earning was easier. However, I don't think PSE stocks, especially the index, are the best investments for beginners today.

Here are four beginner-friendly investments for first-time investors:

1/ High-Yield Digital Banks and Time Deposits.

Unlike traditional banks that pay less than a quarter of a percent per annum, high-yield digital banks can offer around 2.5 to 12% per annum.

Since it's for beginner investors, their deposits are likely less than P500,000, which the PDIC insures. There's also the option of short-term time deposits from three to 12 months that pay reasonable interest rates, even comparable to some dividend stocks. Moving money in and out of the digital banks is also fairly easy if ever you want to try other investments.

You can also use these digital banks to store your emergency funds.

2/ Managed Funds With a Good Track Record.

If you want to start with equities, you can invest in managed funds.

However, since many Philippine funds are generally underperforming, it's essential to compare different funds' performance and then choose the best-performing funds. You may also try the global and feeder funds because they usually perform better than the PSE. There are also managed funds that pay dividends, adding to your potential earnings. 

Remember, don't blindly invest in popular mutual funds and UITFs. Always check their performance.

3/ Dividend Stocks and REITs in the PSE Dividend Yield Index.

I believe that dividend stocks and REITs are among the most effective ways to invest in the Philippine Stock Market.

Since you're still a beginner, it's good to start picking dividend-paying stocks and REITs from the PSE Dividend Yield Index (PSE DivY). The PSE DivY Index offers a collection of stocks with a proven track record of regularly paying dividends. However, you must still do your due diligence when investing in the stock market.

Then, whenever you receive dividends, buy more until the dividend snowball rolls.

4/ PAG-IBIG MP2.

PAG-IBIG MP2 is one of the best investments in the country because of its inherent advantage over others.

First, PAG-IBIG MP2 is government-guaranteed, so it's essentially secure. It's also tax-free for its dividends, requires low starting capital, and is less risky than other investments. Plus, if you're already paying PAG-IBIG contributions, you're one step closer to starting your MP2 account.

These four beginner-friendly investment options are great and will also work for more experienced investors. 

Hopefully, the Philippines will have more investors and a better economy.