Sunday, October 28, 2007

Where to Save and Invest?

Most people know where to save their money. In Malaysia alone, we have more than a dozen of banks which can be used. Setting up a saving account is not much a hassle anyway. However, do I know where to invest?

Investment Vehicles

In my opinion, there are few investment vehicles which are readily accessible in Malaysia.

ASN, ASB, ASW etc : Permodalan Nasional Berhad (PNB) is part of government effort to instill a saving habit among Malaysians. PNB has issued various unit trust schemes such ASB, ASN, ASW 2020, ASD, ASG. PNB was founded in 1979 and became the largest fund management company in Malaysia. These unit trust scheme usually yield between 7-10% dividend each year.

Click here for PNB master prospectus.

Other Unit Trusts: Unit trust has a long history since 1959 in Malaysia. Nowadays, there are at least 20 companies offering unit trust products. The unit trust can give up to 40% return in a year (not all, only few with exceptional performance). However, the average return is between 10-20%. It is advisable to leave my money for at least moderate term (3 years) in order to get a fair return.

Property: Property is almost sure to appreciate in value. With development around Malaysia (such as Wilayah Pembangunan Iskandar WPI), some regions will experience property booming soon.

These are 3 investment vehicles which i think readily accessible in the market. The other vehicles are complex, consume time and need big capital. Thus, as an average person I will concentrate on these 3 investment vehicles. These investments are simple and easily understandable with manageable amount of risk.





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