The COVID-19 pandemic has changed the world and more impact on the investment markets. These days, the price of shares has dropped a lot and that includes the blue-chip ones too. Furthermore, interest rates are low too. So since March 2020, investors have been busy going around the money markets. Would you want to be left out?
Time to diversify your portfolio
One of the options that you can consider when it comes to your investments is to diversify your portfolio. While this sounds like something that only the more seasoned investors will know how to do, it does not mean you cannot do it on your own. One of the platforms that you can consider is through the EPF (Employee Provident Fund)’s i-Invest function. The i-Invest option is not new and EPF recently provided a one-year fee reduction if you want to use your EPF to invest.
What is i-Invest and how will it affect you?
First, it is very important to know what i-Invest is. Basically, it is the option where you can invest part of your EPF savings. This is done online and you can now do so without needing to go through an FMI or Fund Management Institution (as required previously). What you can do here is that you can put your investments in unit trust funds and you can actually do so globally. If you are planning to do this or thought about it, you could consider:
- Invest abroad – In the last 10 years or so, Malaysia has been falling behind compared to other markets. The S&P (USA) has increased by more than 200% while our own FBM KLCI has only increased not more than 30%.
- Unit trust choices – Through the 20 FMIs available, you can actually choose between nearly 300 different funds.
- Sectors – You can choose which market segment or industry to get into whether it is commodities, real estate or securities.
Who should go into i-Invest?
This is a great option if you want to invest your money into more segments instead of just a few main ones. When you spread your portfolio this way, you get to spread your risk too which means there are some that might perform while others take longer to see any returns. However, this is one option for the younger EPF members because, at an older age, you might not be too comfortable with such risk levels. Furthermore, you might not want to wait a long time for returns in your investments.
Before you get into i-Invest and start managing your own money, you must ensure that all homework, research and due diligence are done. Like any other form of investment, there is no reason to jump into anything based purely on luck. You could talk to an agent or a financial advisor before taking the plunge.
So, if you are none of the above, then it is best to either let the FMI or agent handle this for you or lave your savings in EPF for as long as possible. You would continue to enjoy the returns and profits annually.