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Dec 04

How to Earn High Return Investment in KL

The capital city of Malaysia, Kuala Lumpur or KL, is where all the magic happens as it’s the nation’s financial hub. Based on the 2019 State Socioeconomic Report, Kuala Lumpur contributed 16.4% out of 72.3% of Malaysia's total Gross Domestic Product (GDP), making it the second-highest contributor after Selangor with 24.2%.

If you consider the GDP per capita which records above the national level RM46,450, Kuala Lumpur takes the top spot by contributing RM129,472 to the local economy. This implies that the capital city of Malaysia possesses and presents various opportunities for people like you to earn high returns from investing in the city.

You see, there are various ways for you to earn a profitable investment in Kuala Lumpur. It can be investing in real estate, stock trading, or an art piece. Before you question how you can earn a high return on investment, let’s understand what is considered as a high return investment in KL.

What is a high return investment?

Before we explore in-depth about high return investment, know that risk and return are directly related. Low-risk investment entails low returns while high-risk investment entails high returns.

To earn high returns on your investment, you have to invest in market-linked investment instead of fixed-income investment. Among them are initial public offerings (IPOs), venture capital, stocks, real estate, unit trusts and mutual funds, foreign currencies, and peer-to-peer (P2P) lending.

If you intend to invest in any of the high-risk investments mentioned above, note that it takes a great amount of risk and substantial patience to earn high returns.

Take Warren Buffett as an example. His investment philosophy is based on Benjamin Graham’s school of value investing, which is to look for securities whose prices are unjustifiably low based on the intrinsic worth. With an average annual return of 17.1% since 1985, the chairman and CEO of Berkshire Hathaway is currently the world's third-richest person.

This speaks volume of how taking great risks and being patient with your investment will yield high returns in the future. Now that we’ve learned about high return investment, it’s time to find out how you can earn high returns on investment in KL.

Ways to earn a high return on investment

Given that there are so many ways for you to earn a high return on investment in KL, the following are some ways for you to earn high returns with minimal capital.

1. Stock trading

Given that KL is the financial hub of Malaysia, investing in stock trading is your best bet to earning high returns on your investment. However, it’s also one of the riskier investment as Malaysians often confuse investing with speculating.

Before you start your journey in stock trading, know that having prior knowledge is necessary to understand what you’re dealing with. There are two types of trading – offline and online trading. The latter allows you to trade stocks anytime, anywhere, and on any devices.

It gives you the freedom to regularly check real-time stock processing, access account portfolios and track your trade history. Which means you’re in charge of your trading activity.

However, the only downside to online trading is that it can be confusing and you may end up making a loss. Thus, it’s important for you to choose a market that you’re interested in and can afford. That way, you can avoid investing in the wrong market and lose your capital.

2. Real Estate Investment Trusts (REITs)

As one of the most populated cities in Malaysia, there’s a constant need for new properties in KL, be it landed or high-rise. You see, real estate is a key asset class in any investment portfolio.

Instead of investing in property stocks or physical property, you now have the option to invest in REITs by paying only a fraction of the property price. This means you can invest in quality large-scale commercial real estate without having to purchase the properties.

Among the benefits of investing in REITs are affordability, liquidity, stable income stream, exposure to large-scale properties, and professional management.

3. Art pieces and collectables

Investing in art pieces and collectables can be tricky if you have little knowledge about their worth. Good art, collectables, or quality antiques are often safe investments which tend to grow in value over a long period. Besides, you get to enjoy or keep them in your home.

If you’re familiar with the world of art, there’s a general rule when it comes to putting a price on any artwork. The works of deceased master artists are often appraised at a value higher than those of a prolific living artist.

Given that you invest in an original piece, the rarity of that art piece is what makes it a high return investment in the long run. Some people who buy paintings don’t usually sell them, and that fact alone can skew the pricing samples.

Let’s say you’re ready to part with your art piece, your best shot of getting a decent return will be a fine art auction house. They typically charge around 5-25% of your sale price for auctioning your piece.

While the art market can be stable or show high returns on investment during a period of increased commercial activity, it can easily plummet in value during the recession.

If you’re looking for high return investment, GeneApp Malaysia offers an investment 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]