To some of you that are new to Investing, we usually think that Investment involve lots of Money or you might think that’s where the Rich got Richer right? What if I tell you that you can Invest with small amount of Money?
If you have RM1000 now, this is what you can Invest in :
1.Mutual Fund :
Also known as Unit Trust. I have encountered multiple experience where I mentioned Mutual Fund or Unit Trust but still many of my friend dont get it but when I mentioned similar to Public Mutual then they know. LOL. Public Bank must be doing a really good job in their marketing. Thats why they are the No 1 Mutual Fund Company in Malaysia.
What’s so good about Mutual Fund? They will invest your Money in the Company based on selected sector or country. If you dont know how to invest, this will be your best Investment Option. You can consult your Mutual Fund Agent directly or you can do your own study via Mutual Fund website. I am using Fundsupermart for my Mutual Fund Investment & compare to other local Mutual Fund website, I find Fundsupermart to be more user friendly. Aside from Mutual Fund, they are offering Insurance, PRS, Bond & even Managed Portfolios.
List of my Recommended Mutual Fund Company / Agent :
Yes I know. People said you need a huge capital right? My lowest investment is RM250 include Online Brokerage Fees. The amount of capital to Invest might be low but you need to have proper study before you Invest in any stocks. What I usually do before I Invest in the company is to read their Annual Financial Report to study the Company Financial Details & other criteria before I Invest my Money in it. Something worth to learn if you are interested in it. You can checkout my Recommended Book on Stock Investment to learn more about it.
Some of our friends might mentioned that they “PLAY SHARE”. Hello! Its Invest not “PLAY” ok? Below are some of my Recommended Online Stock Broker :
3.REIT (Real Estate Investment Trust)
Imagine you can have part ownership in few office building, warehouse & mall? COOL LAH. Invest RM1000 & getting paid on Quarterly basis for your rental income? Thats so COOL. Most REIT company pays up to 90% of their earnings. If we compare their Average Dividend Yield to Fixed Deposit, REIT company Average Dividend Yield is at 5% which is higher than Fixed Deposit (3%).
How can you buy REIT? You can buy it via Online Stock Broker or you can buy it via Mutual Fund Companies. Depending on what you prefer, I personally recommend you to buy from your Online Stock Broker to avoid high Mutual Fund Fees.
Click HERE for list of REIT Company in Malaysia.
4.ETF (Exchange-Traded Fund)
Similar to Mutual Fund but not so similar. LOL. One of their advantage is Lower Fees compare to Mutual Fund. The difference is, you can buy ETF via Online Stock Broker & Mutual Fund via Mutual Fund Company.
As ETF is still new to Malaysia, not much people are exploring this option. Government are putting initiative to support the growth of ETF in Malaysia. With Government Initiative, you will probably see more ETF stocks to be traded in the future
Click HERE for the list of ETF in Malaysia.
5.P2P Lending (Peer-to-Peer Lending)
Now you can be your own “BANK” by lending your Money to Businesses. Best part of all, its as low as RM100 per transaction.
Their average return is higher than Fixed Deposit but of course there are risk as well. Usually your P2P Platform will be doing their extensive research on the Borrower Financial status & Company before approving it. Lenders are able to go through the Company Fact Sheet to understand more on the Borrower.
Below are 2 P2P Lending Company that I have account with :
Many people recommend to Invest in Gold to Hedge against Inflation. Thats why our Grandpa & Grandma always go to Gold Shop to shop for Gold to keep. Why want to buy Physical Gold when you can own Gold by purchasing it from Bank or other platform?
In my Investment Portfolio, I allocate 5% to Gold. Average price for 1 gram of Gold is between RM165-RM185. What I usually do is, I will buy 1 gram of Gold on monthly basis to get the Dollar Cost Averaging price.
Below are some my Recommended Platform to invest in Gold.
- Hello Gold
- CIMB Gold Investment Account (Black Belt Millionaire Choice)
- Maybank Gold Investment Account
Its a similar concept as EPF but its a Voluntary Investment Scheme. What makes PRS more exciting is we get the select which PRS Fund to buy. Under Fundsupermart Platform, there are huge selection of Fund available from different Banks & Fund Companies.
Benefits of PRS include Tax Relief of RM3000 on your Taxable Income. Based on your Tax Relief, you are able to save up to RM840. On top of that, the Government will contribute RM1000 to match your Minimum Contribution of RM1000.
Lets said you Invest full RM3000, your Guaranteed Return is RM1000 + Average Tax Relief return of RM630. Thats 54% Guaranteed Return on your First Year. Its too good to be true right? But its true. What are you waiting for?
Click HERE to find out more.
There are many Investment Opportunities to Invest with RM1000. Never limit yourself to think that Investment requires huge amount of Money. Why I suggest RM1000 instead of smaller amount is because I think RM1000 is a reasonable amount to start with.
And I agree, some of you might not allocate extra Money every month on Savings or Investment. Start small. I started to Save & Invest between RM100-RM200 per month & gradually increase the amount when Im comfortable with it.
Start Now & Enjoy Your Retirement Journey.