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Nov 17

7 Investment Options That Generate Regular Monthly Returns

Whether you’re looking to supplement your monthly paycheck or aiming to create a nest egg, there’s plenty of ways for you to invest your money and gain a consistent monthly return on investment (ROI).

Now, why is it important for you to start investing your money and learn how to make money in Malaysia? In times of hardship like what most of us are facing now, we certainly need the money to survive. By investing your money, you get to ensure the financial security of your present and future.

Not only are you getting more money in the bank, but you’re also creating another stream of passive income in Malaysia. Besides, investing your money also allows you to grow your wealth and increase your chances of early retirement.

Having an investment plan also helps to mitigate risks as you can spread out your investment over several strategies while allowing it to grow with interest. Additionally, investing your money can encourage you to build a sustainable habit of monthly saving.

Once you manage to control your expenditure, you’ll feel good about having the flexibility to make any of your financial decisions.

As money depreciates over time, it's best to invest a certain amount in ways that can guarantee you a monthly return. Ahead, we're sharing several options that can generate a monthly return on investment.

1. Fixed deposit

Surely, you've heard from your parents that placing some of your money into a fixed deposit is the safest form of investment. Guess what? They're right.

Placing your money in a fixed deposit account is the most stable and secure form of investment. As it entails zero risks, guaranteed returns, and flexibility of placement duration, most but not all turn to fixed deposits as a reliable form of short to long-term savings.

Besides, most fixed deposit accounts in Malaysia are regulated by Perbadanan Insurans Deposit Malaysia (PIDM) which means your investment is protected in the unlikely event of member bank failure.

So, when it comes to choosing a reliable fixed deposit account, you may want to check if they are insured by PIDM along with the interest rates and minimum deposit amount.

Depending on the bank you choose to open a fixed deposit account with, the interest rates vary based on your placement amount and duration. If you place your investment for a 12-month duration, it can generate around 2% to 2.5%.

2. Mutual fund

Investing your money in a mutual fund is another safe type of investment like the fixed deposit account. It involves the pooling of investor’s money and invested collectively by a company like Public Mutual.

Investing in mutual funds also generate higher returns than fixed deposits. This is because 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, saving you time and money.

By applying their expertise, they can set up your mutual fund with a certain theme or sector of focus. That way, they’re helping you to take market opportunities within a smaller subset of investments.

Depends on the mutual fund that you choose to invest in, you can expect to gain around 2.1% to 3.9% per annum.

3. Property rental

Another option for you to generate a monthly return on investment is to rent out your room or property. Although it requires a significant amount of investment in the first place, you can expect a consistent stream of monthly income.

Renting out your property means more than just collecting your monthly rental income. It’s much like a business as you want to ensure that the property yields an excellent return. So, what’s the ideal rental yield?

Before that, you must know that rental yield is calculated by taking the annual rental income generated by your property and dividing it by the total value you invest in it. Multiply it by 100 and you’ll get the percentage of the rental yield.

Depends on the location, area and type of your property, your average rental yield may differ. A rental yield of around 5% in Malaysia is considered decent. If it goes above that percentage, it suggests that your property is performing above the average.

4. Turn your car into a moving billboard

Traditionally done on public transport like buses and trains, you can now turn your car into a moving billboard by cashing in on the advertising world.

If you live in the Klang Valley or have been to Japan, chances are you’ve come across these moving billboards. These billboards have become the norm in certain places as they’re highly noticeable and more memorable as we rely more on sight rather than the other senses.

Companies like Grab, MyBump or Rodeo are paying private drivers like you to stick advertisements on your car. There’s nothing better than driving around town while earning money in the process.

While these companies don’t specify how much they’re paying the drivers, you can expect to earn around RM150 to RM500 in a month.

5. High paying dividend share

If your goal is to achieve a passive income of more than RM30K per annum through dividends, you can consider investing in high paying dividend shares/stocks.

As a shareholder, you get to earn a dividend when the company that you invest in, makes a profit. The companies typically pay out the dividends according to a schedule which can quarterly, yearly, etc.

However, there’s a catch to this – some companies aren’t obligated to pay the dividends. Instead, they may reinvest the profit to grow the business. Which means you can’t earn a higher dividend.

Companies like IBM and Maybank tend to make profits each year due to their in-demand services. You can expect to earn a dividend of 5% to 10% per annum.

6. Digital investment

If there’s a physical investment, there’s also a digital investment such as the cryptocurrency, Peer-to-Peer lending (P2P), and Forex trading.

Surely, you’ve heard of Bitcoin, the cryptocurrency that’s rapidly growing in popularity and price. This new form of the digital asset is based on a network that is distributed across several computers. The system allows for secure payments online which are in the form of virtual tokens – represented by ledger entries internal to the system.

As for Forex trading, it’s the act of trading currencies against each other as exchange rate pairs like the EUR/USD. While it’s possible to make huge returns on your investment, the prices of the currencies that you trade against may fluctuate based on the economic situation of the countries involved.

7. Private REIT

Investing in private real estate investment trust requires you to have a long-term outlook on your investment and a significant upfront capital commitment.

If you don’t mind investing your money in a long-term investment, you can earn around 6% to 10% in dividend yield.

Additionally, returns for value-added or opportunistic strategies can be higher than usual. However, if the fund underperforms, there’s a high chance of losing your entire investment.

Depends on which investment plan you choose, make sure you assess your income portfolio, objectives and skills set. Avoid investing in matters that you don’t understand as that’ll only increase your chances of losing your investment.

If you’re looking to diversify your investment, GeneApp Malaysia offers a financial plan that can multiply your wealth, 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]