Why Filipinos should look beyond home for equity investments

When I first started investing decades ago, I was proud to put money into the Philippine stock market.

It felt like more than just a financial move—it felt patriotic. I liked the idea that I was helping local companies grow, keeping money in our country, and joining the “Philippine growth story.”

Many Filipinos feel the same way. After all, this is our home. We live here, earn here and dream here.

But as I’ve walked the long road of personal finance, I’ve also realized a hard truth: patriotism alone cannot be an investment strategy. If we are to be wise stewards of the resources God has entrusted to us, we must sometimes make painful choices.

One of those is reducing our exposure to Philippine equities and shifting more of our investments into global equities.

It’s not easy to let go. There’s a certain pride in owning shares of companies whose logos we see in malls, highways and advertisements every day. Banks, property developers, big conglomerates—they feel familiar and close to home.

Yet investing is not about familiarity or sentiment. It is about aligning our portfolio with our objectives and managing risk wisely. And when we look at the data, the reality becomes clear: the Philippine market has underperformed for many years, while global markets—driven by technology, health care and consumer innovation—have left us behind.

Diversification in its purest form

Consider our own stock market, the Philippine Stock Exchange Index. It is heavily concentrated in just a handful of industries: banking, property and utilities.

Growth is slow. Add in recurring issues of political instability, corruption scandals and weak foreign investor participation, and the story is often one of stagnation rather than acceleration.

Meanwhile, global markets give investors exposure to entire industries that don’t even exist locally. Artificial intelligence, biotechnology, renewable energy, e-commerce and global consumer brands—these are shaping the future, and they are not available if we limit ourselves only to Philippine equities.

Does this mean abandoning our country? Not at all. It simply means being wise. The Bible says in Ecclesiastes 11:2, “Give a portion to seven, or even to eight, for you know not what disaster may happen on earth.”

That is diversification in its purest form. We do not know what disasters—political, economic, or natural—might hit our nation.

But we can prepare by spreading our resources so we are not tied down to just one small market of 115 million people.

Risks to consider

Of course, investing in global equities has its risks. Currency fluctuations can affect returns, especially if the peso strengthens. Global markets themselves can be volatile, as we saw during the pandemic, the Ukraine war and the US Federal Reserve rate hikes.

But the truth is this: all investing carries risk, whether local or global. The key is not to avoid risk—it is to manage it wisely. And global equities give us more ways to spread out that risk.

The best way for most Filipinos to access global markets is through global funds—mutual funds, unit investment trust funds (UITFs), or feeder funds. These are managed by professionals who allocate across sectors, regions and currencies, so you’re not betting on one market alone.

It’s like joining a caravan instead of walking the long road alone—you have more support, more eyes on the road and more chances of reaching your destination safely.

Now, I’m not saying we should pull out of Philippine equities completely. A balanced portfolio will always have room for some local exposure, especially if you believe in certain industries or want to participate in long-term national growth.

But balance means not being overexposed to one country, particularly one with persistent structural challenges. For most investors, shifting a significant portion toward global equities is not just an option—it’s a necessity if we want growth and resilience in our portfolios.

Think of it this way: if your goals are short-term, like a planned expense in the next year or two, keep your money in cash or fixed income.

If your goals are medium-term, mix bonds and equities, with global funds as a key driver of growth.

If your goals are long-term, like retirement or your children’s education decades from now, then global equities should carry even more weight. The right mix depends on your personal objectives, but the principle is universal—don’t put all your eggs in one basket.

Stewardship

This is where stewardship comes in. Patriotism is admirable, but stewardship is greater.

God calls us to manage our resources wisely, not emotionally. If global exposure gives us better opportunities and protection, then the faithful response is to take that step.

Our financial choices ripple outward—they affect our families, our future and even our ability to give generously and support others.

By strengthening our personal economy through wise investing, we become better equipped to bless others.

So yes, it may feel painful to trim down on Philippine equities. It may feel like letting go of a dream that our local market will one day soar to global heights. But wisdom requires us to invest not based on sentiment but on sound principles.

Global equities open doors to industries and growth far beyond our borders, and they protect us from the concentrated risks of our own economy.

Looking ahead, I encourage you to keep perspective. Continue supporting the Philippines in ways you can—through your work, your taxes, your businesses, your community. But when it comes to building wealth for your family’s future, don’t be afraid to think global.

Patriotism is good, but stewardship is better. And wise stewardship will always lead us toward growth, resilience and opportunity that lasts. INQ

Randell Tiongson is a registered financial planner of RFP Philippines. To learn more about personal financial planning, attend the 114th RFP program this January 2026. Email info@rfp.ph or visit rfp.ph to learn more about the program.