An investment is an asset or something of value purchased to make more money in the future. There are various types of investments, such as stocks, bank products, real estate, and more—all to help you achieve your financial goals. Starting an investment today will get you ahead financially and achieve your long-term goals. Are you thinking of making an investment in Malaysia? Here are five rules of thumb for beginners you need to know!

  1. Know the types of investment in Malaysia

Malaysia is an investor-friendly location for the long-term growth of both foreign and domestic businesses, so investing in this country is a great option. How to invest in Malaysia? First things first, you need to know the types of investment available here. While there are many types of investment in the country, you should consider a fixed deposit.

Usually referred to as “FD” in Malaysia, a fixed deposit is a kind of investment account that guarantees you a fixed rate of revenue. Consequently, you make a deal not to withdraw funds for a specified period of time. This is an incredible investment choice if you are hoping to develop your investment funds and have a significant amount of money that you want to put away for a long time. You should also consider some other types of investment in Malaysia: Amanah Saham Nasional Berhad, Tabung Haji, Unit Trusts, Blue Chip Stocks, and Real Estate Investment Trust.

  1. Find out your risk profile

Another rule of thumb for how to start investing in Malaysia is that you need to find out your risk profile to decide which is the best option for you and your budget. Knowing your risk profile before you consider investing for beginners in any financial instrument is essential so that you know exactly how much risk you’re ready to take. As an evaluation of your ability to take risks, a risk profile includes various factors such as your risk tolerance and risk capacity.

  1. Start investing as early as possible

It’s essential to invest as early as possible because compound interest works magic on your money. By starting early, you can take more risks and get the opportunity to earn better returns and gain financial freedom. Even if you make wrong decisions, an early investment can recover without affecting the long-term financial goals. 

So, when exactly is the right time for you to start making investments in Malaysia? First is when all of your debt, such as your credit card, has been paid off. Second, make sure you’ve already secured an emergency fund that’s worth at least three months’ basic income should you lose your job. After that, you can start putting away small amounts every month into stocks. You will get more comfortable with the process as you gain more experience.

  1. Determine your financial goal

A financial goal is a target or any plan for managing your money. It can be short-term and long-term, like saving up some money for short-term goals or investing for retirement as a long-term financial goal. Whatever your goal is, it should give you focus and keep you accountable, regardless of how long it takes to make it happen. It will be easier to choose the best investment type to suit your needs by determining your financial plan. 

  1. Know the risk of investment

If you are thinking of making an investment in Malaysia, the least you should know is that all investments carry some degree of risk. So it’s essential to know the risk of investment to help you make choices about what to do with your financial assets. It would be best to consider any uncertain aspects of investment that could potentially affect your economic welfare. This way, you can make a wise investment by anticipating any possible risks.

So, those are five rules of thumb for beginners you should know if you’re thinking of making an investment in Malaysia. Considering the pros and cons will help you determine the best type of investment to try. Best of luck!


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Disclaimer: The information provided to you in this blog post is intended only for general information purposes only and does not constitute legal or other professional advice on any subject matter. The materials and the information provided are not intended to be and do not constitute an advertisement or solicitation.  In no event will Funding Societies be liable to any party for any direct, indirect, incidental, special, consequential or punitive damages for use of such information by you or any unauthorized third party.