Malaysia Investment Guide

Best options and returns for your money

It would be quite difficult to ascertain just which investment you should venture into especially since there are so many around. To make it worse, you get so many advice that you are not sure which one you should believe. Sometimes, just going with your gut feeling might work or just knowing which one are people investing in will more or less help you to decide.

Real estate and property

Supposedly the most stable form of investment. This is the type of investment which is very common among people who:

1. Has the tendency to both consciously and unconsciously be attracted to properties.
2. Likes to relate amenities with the property like banks, schools and such
3. Kept abreast of latest updates with the major property developers and know who are the bad ones
4. Has superior spatial intelligence which means that they could be more well-versed with directions as compared to others
5. Will consider REITs if they do not have the capital to buy their own property

Unit Trusts

Sometimes referred to as Mutual Funds or ETFs (Exchange-Traded Funds), this is ranked second in Malaysia when it comes to investments. For the people who are into this type of investment, they usually:

1. Not really keen to invest on their own. They like to have someone or a company to handle their money.
2. Don’t really care where the money goes as long as there is profit
3. In Malaysia, it is common to have unit trust investments in their insurance policy
4. Usually get recommendations from friends or their agent
5. Can’t really tell the difference between unit trust and mutual fund (very small difference)

Stocks and shares

In this context, it is the blue chip shares we are talking about. After all, they are the most profitable. People who invest in these shares usually:

1. Follows the drama with high-level companies
2. Works in an MNCs
3. A fan of the blue chip company which drove them to buy the share

FD or Fixed Deposit

If you have money and has no problem waiting for it grow, then you could put your money in a Fixed Deposit (FD) for a few years. There are people who like this type of investment where they:

1. Go for absolution and a sure-win strategy
2. Do not mind smaller profit. Its better to have a little than none at all
3. Follows the developments from the banks and take the chance when a promotion surfaces
4. Mostly preferred by the non-Bumiputera investors

Precious metal

This refers to gold or silver and is known to have good returns. Investing into gold never fails since it is a global currency of some sort. Those who invest in this are those who:

1. Prefer the old school investment method. This is sometimes called the ‘tried and tested’ method
2. Might just be those who keep real gold. The rule of thumb is to keep them at safe deposit boxes
3. For the modern investors, they might buy e-gold.

Precious items

This refers to items like antiques, jewellery and art. Not the most common form of investments but are equally as valuable. The collectors usually:

1. Like this investment both for profit and as a hobby
2. Are rich people
3. Attends art galleries, exhibitions and auctions like Christie’s and Sotheby’s or with Henry Butcher auction in Malaysia

Fiat Currencies

Fiat currencies are money issued by government. This is like the USD or in Malaysia, the MYR or Malaysian Ringgit. Those who prefer this type of investment are those who:

1. Are aware of what is going on in the world and follows the global news quite closely
2. Knows about the regulations and laws circling around finance and money markets
3. Knows everything and understands fully about issues like Brexit and such
4. Probably involved in Froex trading and would have knowledge about Technical Analysis
5. Might be involved in commodities trading as well

Hedge Funds

This is the type of investment involving a lot of strategy. It is very high risk which brings with it very high returns. Those who like this type of investment would be those who:

1. Are very rich with high net worth. They have a fund manger to manage their money because they are just too busy
2. Thinks investors like George Soros are money-gods
3. Might just borrow money in order to make profit. They call this leveraging

Digital Currencies

Sometimes referred to as cryptocurrencies. Bitcoins and Ethereum are common terms for them. They would be people who:

1. Are from the internet generation
2. Thinks blockchain is a god-sent
3. Is very involved in digital investment and believes that security is the most important feature today
4. Are aware that this is among the most high-risk money market to ever exist but is involved anyhow. In fact, they get so deeply involved, they can barely get out.