How to Start Investing in Malaysia with RM10,000?

Ever wondered on how to start investing in Malaysia? What to do with RM10000 in your savings? While it may not be a large amount of money, there are many things you can do with it. You can choose to splurge it on yourself or your family, use it for your necessities or stash it away for investment.

You see, knowing how to manage that amount of money is crucial, especially in this day and age where everything becomes uncertain due to the pandemic – movement restrictions, economic instability, etc.

As an initiative to help the people cope with economic hardships, the government introduced the i-Sinar programme, which allows contributors to withdraw up to a certain amount of money from their Employees Provident Fund (EPF).

However, it's been known that most Malaysians are using a substantial amount of their withdrawals to invest in everything from mutual funds to stocks. Bear in mind that we're not encouraging you to withdraw RM10,000 from your EPF savings because if you don't have an immediate need for the money, it's best to keep it in your EPF account.

That said, there are various types of investment for you to start investing in with RM10,000. For those people who are wondering on what to do with RM10000 , let’s discover them in the following section!

How to Start Investing in Malaysia

Mutual Funds

Like fixed deposits, investing your money in mutual funds is fairly safe because it involves the pooling of investor’s money which are then invested collectively by a trusted investment company like Public Mutual.

Investing your money in mutual funds also generates higher returns compared to fixed deposits. You can buy shares in a mutual fund instead of investing in several funds individually. The fund manager will apply their experience and expertise to help you generate a better return on your money.

Depending on the mutual fund that you choose to invest in, you can expect to gain around 2.1% to 3.9% per annum. The returns may be low but it's one of many options available for those who for those who are thinking on what to do with RM10000.

Equities (stock)

How to start investing in Malaysia? Well, if you want to invest in equities such as stocks, there are many choices depending on your time availability and skills. Like mutual funds, stock trading offers high returns on your investment but it's also one of the riskier investments.

Before you start your journey in stock trading, know that having prior knowledge about the stock market is necessary to understand what you’re dealing with. If you don’t understand it, the stock market can be confusing and you may end up losing your capital.

Depending on the stock market, the amount of dividend you earn will vary from day to day. But if you invest for the long run, you can expect to earn profitable returns. Stock investing is definitely one of the best options for those who are thinking on what to do with RM10000.

Bonds

How to start investing in Malaysia safely? If you want to play it safe, you can consider investing in fixed-income assets like bonds. It's debt security whereby borrowers (the government or corporation) issue bonds to raise money from investors who willingly lend them money for a set period.

In return, the borrower promises to pay you a specified rate of interest at set intervals during the life of the bond and to repay the principal when it's due after a set period.

That said, investing in bonds over the long term can also provide you with investment stability to help buffer against the volatility of the stock market and give you tax-free income. If you are one of those who are thinking on what to do with RM10000, you can consider investing in bonds!

Commodities (gold)

Commodities like gold have been a strong and solid investment over the years. Historically, the price of gold has provided investors with a healthy profit despite the recent fluctuations. What makes it valuable is due to three properties – scarcity, durability, and malleability.

That said, you can consider investing in gold as a form of security against inflation for yourself or your family. You can also choose to sell it when the buying rate go up so that you can earn some profit. If you are one of those who are thinking on what to do with RM10000, you can consider investing in gold!

P2P Lending

Aside from the investments listed above, you can also invest in P2P (peer-to-peer) lending. For this investment, you’ll be lending your money to individuals and businesses through online platforms, allowing borrowers to obtain loans without needing to undergo strict requirements of banks.

While P2P lending generally promises higher returns, investors like you can take on a higher risk as well. Because the platforms calculate interest rates based on the risk profile of the borrower.

That said, investing in P2P lending is safe as it is regulated by the Securities Commission (SC) Malaysia. Before you start investing in any of the platforms, check whether it has been licensed under the SC. If you are one of those who are thinking on what to do with RM10000, you can consider investing in P2P lending!

If you’re looking for ways on how to start investing in Malaysia, Gene offers a financial plan that can multiply your investment, manage and increase your digital assets. You can also earn a daily income and convert your earnings to invest in property and jewellery.

Keen to invest with us?

Contact us at 011 6939 2180 or email your queries to [email protected]. Hope you enjoy reading this article on how to start investing in Malaysia with RM10,000!