Low Risk And Medium Risk Investment Plans in Malaysia


Many people are confused about investing. It isn’t difficult to invest in real life. You only need to understand the concepts of compounding, delayed gratification and other aspects of investment. It is not necessary to have a large amount of money set aside to invest if you are thinking about investing. Start investing with as little as RM1,000

Before you invest, you should verify that you don’t have any debts. This includes credit card bills and loans. It is a good idea to get rid of all debts that you have before investing.

The most important thing to know about investing is the risk involved in every investment. It is obvious that higher returns are associated with higher risk. You need to decide whether you want to earn higher returns or keep your money safe while making a small profit. Let’s look at the different investment options with their varying risks.

Low Risk Investments

Fixed deposit (FD)

When you’re looking for investment options, fixed deposit should be your first choice. Fixed deposits are a popular choice for retired people to save their retirement money. Fixed deposits have low risk and high returns, which is why they are so popular. Fixed deposits can be described as a bank account in which you deposit money and then keep it there for a while. After the term of the fixed deposit account has ended, you cannot withdraw the amount that you have put in. Depending on the bank’s policies, you might be allowed to withdraw interest earned.

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Amanah Saham Bumiputera (ASB)

Amanah Saham Nasional Berhad has created an ASB unit trust fund for the benefit of Malaysian Bumiputeras. ASNB is a subsidiary Permodalan Nasional Berhad. ASB is an investment that serves as an equity income fund. To invest in ASB, you must purchase at least 10 units. Each unit costs RM1.00. ASB allows you to invest a maximum amount of RM200,000. ASNB pays the dividend on your investment annually. 31 December is considered the end of the year. Although the returns are calculated on a monthly basis, they are still given on an annual basis. A 8.5% annual interest rate is possible. Your investment will earn you an interest rate of 8.5% p.a. ASB’s interest rate is too high compared to other schemes, which is why it is so popular. This scheme is only available to Malaysian citizens. It is not applicable to foreign citizens.

Medium Risk Investments

Unit Trust Funds

Unit trusts are considered medium-risk investment mode due to the fact that they require a greater level of knowledge in order to fully understand the scheme. A unit trust is a group investment tool that allows people with the same view to pool their funds and invest in a portfolio. The funds can be pooled in various forms, such as shares, cash, bonds, stocks, or commodities. Based on whether the unit is distributed or appreciated in capital, investors earn equal returns. Fees and charges for investing in Unit Trust Funds are included such as a trustee fee and sales charge. It is a good idea to contact an agent if you are interested in Unit Trust funds. This will ensure that there are no unnecessary fees or charges. This is a great option for first-time investors to get started in the market. It works with small capital and makes it easy to invest.

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