Introduction:
When it comes to growing your wealth and safeguarding against the impact of inflation, understanding various investment options is crucial. One viable avenue is investing in bonds, with Retail Treasury Bonds (RTBs) emerging as an accessible and promising choice.
A. What is a Bond?
Bonds are debt instruments issued by governments or corporations to raise capital for financing projects.
B. What is a Retail Treasury Bond (RTB)?
Retail Treasury Bonds, or RTBs, are medium- to long-term debt securities issued by the Republic of the Philippines through the Bureau of Treasury (BTr).
Notably, the RTB29 series, available until February 17, 2023, is a fixed-income security that pays a fixed quarterly interest rate and guarantees the return of the principal on the maturity date.
See the details below.
Investment Details:
C. Who Can Invest?
Individuals or institutions with a minimum of P5,000.00 in excess cash and a 5.5-year investment horizon are eligible to invest in RTBs.
D. Where Can You Invest?
RTBs can be conveniently purchased through various channels, including:
- Bureau of the Treasury’s Online Ordering Facility
- Bonds.PH
- Overseas Filipino Bank (OFBank)
- Landbank of the Philippines (LBP)
- Over-the-counter through authorized Selling Agents (details available on the official website).
E. What Are the Risks in Investing in RTBs?
RTBs present low credit risk, as they represent the unconditional obligation of the Republic of the Philippines to return both principal and interest.
Additionally, investors are assured of yields if they hold the bond until maturity. However, selling RTBs in the secondary market before maturity exposes investors to interest rate risk, influenced by prevailing market rates.
Conclusion:
Considering the accessibility, fixed returns, and manageable risks associated with RTBs, individuals and institutions alike can explore these bonds as a strategic component of their investment portfolios.
For more detailed information and to initiate an investment, visit the official Bureau of the Treasury website: [https://www.treasury.gov.ph].
The content and information accessible on SELFMATTERS are presented solely for informational and educational purposes and should not be construed as financial advice. It is strongly recommended that individuals seek guidance from an independent financial advisor regarding their specific circumstances.
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