Is there such a thing as the best investment in Malaysia? Is there an investment vehicle that is suitable for everyone?
But before we begin, let’s first understand what investment is all about.
“Investment is the dedication of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort.”-Wikipedia
We invest in order to grow our money. Because our time is limited where we can only earn an active income in a limited way, investment can unlock this limitation. The earlier we start investing, the bigger the returns in the long run. There are also investment that can give us income in the form of dividend or interest.
I’m sure you have heard of the saying, “High risk, high return”. It means that in order to get a higher return, we need to take higher risk.
So again this begs the question, what is the best investment in Malaysia?
I’m afraid to disappoint you, but the answer is there is none. There’s no such as thing as the best investment in Malaysia.
This is because we are all different. Our age is different, our time horizon is different, our risk tolerance is different and how much capital we have is different from one another.
The same goes with, what’s the best food in Malaysia? Is it nasi lemak? Roti canai? Char kway teow? Everyone will have their own preference.
Even if everyone voted nasi lemak as our best food in Malaysia. But then which nasi lemak? The one in KL? Or in Penang? Or the one in Johor?
What is more important here is that, the so-called best investment in Malaysia is the one that fits our needs. Let’s say we have another 20 years of working life, the investment is more of a long-term game rather than for a quick gain.
For a fresh graduate, he may want an investment that can start with as little as RM100. Which can then slowly increase the amount once he got a better pay.
But for a high net worth investor, he might decide to invest in painting, with the cheapest painting costing upwards of a few thousand Ringgit.
Best Investment In Malaysia
For some, the answer might be in unit trust. Or ETF (exchange-traded fund) or even ASB (Amanah Saham Bumiputera), since the individual might not have the necessary knowledge and skills to select a stock on his own. He does not have the Technical Analysis know-how on when is the best time to buy a stock. Or his risk tolerance is low, can’t even sleep well when his portfolio is in the red.
Whereas an active stock trader will have no problem cutting his losses when things don’t go his way. He accepts that there are risks involved, and follow strictly the trading plan. But for even the best stock trader, surely he would have some investment in property for example, where he can earn a rental income consistently. This would come in handy when he decides to call it a day and live a rather boring life.
Portfolio diversification is crucial, as the popular saying that goes “Don’t put all your eggs in one basket.”
Essentially, we need to be investing in a basket of portfolio, ranging from the lowest risk all the way to the highest risk.
- Low risk investments, such as fixed deposit, Amanah Saham Bumiputera (ASB), Amanah Saham Wawasan 2020 (ASW) and Tabung Haji
- Medium risk investments, such as unit trust, mutual funds, robo-advisors, ETF and property
- High risk investments, such as stocks, futures and crypto
So the answer to the best investment in Malaysia will be different for you and me.