Berapakah Jumlah Simpanan Anda Perlu Menjelang Usia 30 Tahun?
- By CompareHero.my
- June 4, 2021
Memiliki simpanan sebagai merupakan aspek penting dalam pengurusan kewangan peribadi. Tindakan ini ialah langkah pertama dan termudah untuk membina portfolio kewangan sebelum beralih ke komponen yang lebih kompleks, seperti pelaburan, pengurusan hartanah, dan memulakan perniagaan sendiri.
Bagi generasi millennial yang bakal memasuki usia 30an, dan masih tidak tahu bagaimana untuk mula menyimpan wang, panduan dibawah boleh memberikan gambaran berapa yang anda perlu ada dalam simpanan menjelang usia 30an.
Contents
Mengapa 30 tahun?
Ianya agak subjektif dan mungkin berbeza bagi setiap individu, tetapi pada usia ini, anda biasanya akan lebih rasional dan matang dalam membuat keputusan, sama ada untuk kerjaya, pelaburan, perhubungan, dan kehidupan. Jadi, menetapkan matlamat kewangan pada usia ini akan membantu anda untuk memilih tindakan yang diperlukan untuk memastikan matlamat tersebut dicapai pada usia 30.
Ia agak sukar untuk menentukan jumlah yang tepat untuk simpanan yang diperlukan menjelang usia 30, kerana setiap individu memiliki gaji dan pengalaman berkerja yang berbeza. Jadi, kami gunakan formula berikut untuk mengira jumlah simpanan yang perlu dibuat setiap bulan untuk membentuk kewangan yang kukuh.
Formula Pengiraan Simpanan
Perhatian: formula dan cadangan dibawah hanya untuk tujuan maklumat dan sumber rujukan sahaja.
[23% (Persaraan) + 10% (Kecemasan) + 10% (Tujuan Khas)] x Pendapatan Bulanan Kasar (Sebelum Pemotongan KWSP)
Sebagai contoh, Amin, seorang akauntan berusia 24 tahun, dengan pendapatan kasar RM3500 sebulan. Menggunakan pengiraan formula di atas, Amin perlu membuat simpanan sebanyak RM1505 sebulan, untuk memastikan kewangannya kukuh. Dengan baki pendapatan sebanyak RM1,995 sebulan, Amin masih boleh memiliki kereta dengan bayaran pinjaman RM500 sebulan, dan menjalani kehidupan seharian dengan secukupnya.
Mari kita lihat komponen formula simpanan ini, dan mengapa peratus tersebut digunakan untuk setiap komponen.
Simpanan Persaraan
Awal tahun ini, Kumpulan Wang Simpanan Pekerja (KWSP) mengumumkan kenaikan kadar minimum simpanan asas daripada RM196,800 kepada RM228,000.
Menurut KWSP, “kadar Simpanan Asas ini merujuk kepada jumlah minima yang dikira cukup untuk menampung keperluan asas ahli kami selama 20 tahun, dari umur 55 tahun sehingga 75 tahun, berdasarkan kadar jangkaan umur rakyat Malaysia. Kuantum baru ini (rujuk jadual dibawah) menggunakan jumlah pencen minima pekerja sektor awam, yang dinaikkan daripada RM820 kepada RM950 sebulan untuk lingkungan umur 55 sehingga 75 tahun”.
| Simpanan Asas Pada Usia 55 tahun – RM228,000 | |||
| Umur | Simpanan Asas (RM) | Umur | Simpanan Asas (RM) |
| 18 | 1,000 | 37 | 60,000 |
| 19 | 3,000 | 38 | 66,000 |
| 20 | 5,000 | 39 | 72,000 |
| 21 | 6,000 | 40 | 78,000 |
| 22 | 8,000 | 41 | 85,000 |
| 23 | 10,000 | 42 | 92,000 |
| 24 | 12,000 | 43 | 100,000 |
| 25 | 14,000 | 44 | 108,000 |
| 26 | 17,000 | 45 | 116,000 |
| 27 | 20,000 | 46 | 125,00 |
| 28 | 23,000 | 47 | 134,000 |
| 29 | 26,000 | 48 | 144,000 |
| 30 | 29,000 | 49 | 154,000 |
| 31 | 33,000 | 50 | 165,000 |
| 32 | 37,000 | 51 | 176,000 |
| 33 | 41,000 | 52 | 188,000 |
| 34 | 45,000 | 53 | 201,000 |
| 35 | 50,000 | 54 | 214,000 |
| 36 | 55,000 | 55 | 228,000 |
Sumber: KWSP
Berdasarkan jadual diatas, seseorang perlu memiliki sekurang-kurangnya RM29,000 pada usia 30 tahun, untuk memastikan kita di landasan yang betul dalam memiliki jumlah minima yang diperlukan bagi menampung hidup selepas bersara sehingga umur 75 tahun.
Namun, jumlah yang perlu disimpan hendaklah lebih tinggi, jika mengambil kira faktor inflasi dan anda inginkan hidup yang lebih senang selepas bersara.Ini seiring dengan cadangan CEO Private Pensioners Administration (PPA), Dato’ Steve Ong agar setiap rakyat Malaysia memiliki simpanan sehingga 33% dari pendapatan bulanan untuk persaraan.
Untungnya, anda telah mencarum 11% dari pendapatan bulanan, dan 12% sumbangan dari majikan untuk akaun KWSP. Jadi, anda hanya perlu memperuntukkan lebih kurang 9%-10% lagi dari pendapatan anda untuk mengikuti cadangan tersebut. Untuk memastikan 10% simpanan tersebut berkembang, anda boleh laburkannya di 56 Skim Persaraan Swasta (PRS) di Malaysia yang ditawarkan oleh 8 bank dan institusi kewangan berlesen, bergantung kepada perancangan anda.
Simpanan kecemasan
Sebarang kemalangan yang tidak diingini boleh berlaku, dan boleh menelan kos yang tinggi. Oleh itu, simpanan kewangan yang kukuh penting untuk menghadapi situasi ini. Insiden seperti ini termasuklah masalah kesihatan, kerosakan kenderaan, diberhentikan kerja, ataupun bahagian rumah anda rosak dan perlu diperbaiki.Jika melihat pada objektif simpanan ini, tidak dinafikan ia mungkin simpanan yang paling penting dan perlu diutamakan.
Namun, masih ramai rakyat Malaysia yang memandang remeh penyediaan simpanan kecemasan berpunca dari sikap ambil ringan terhadap ketidakpastian dan akibat yang bakal berlaku. Sejak beberapa tahun lepas, kita telah saksikan banyak syarikat besar di Malaysia mengumumkan penstrukturan semula, ataupun menutup cawangan mereka.
Ramai pekerja telah diberhentikan oleh sebab itu.Malangnya, menurut Laporan Kestabilan Kewangan Bank Negara Malaysia, hanya 6% rakyat Malaysia memiliki simpanan kecemasan untuk menanggung belanja selama 6 bulan sekiranya mereka kehilangan punca pendapatan.
Walaupun menyediakan simpanan sebanyak 6 bulan gaji kelihatan sukar, anda perlu bersedia dari awal. Jika tidak, anda sukar untuk menghadapi musibah jika ia melanda.Sebagai permulaan, peruntukkan 10% dari gaji anda ke akaun simpanan yang fleksibel. Jika gaji anda RM3,500, 10% yang anda peruntukkan itu boleh berkembang ke RM3,500 dalam tempoh 10 bulan. Dalam tempoh 5 tahun, anda sudah mempunyai simpanan yang cukup untuk 6 bulan, iaitu sebanyak RM21, 000 dalam akaun anda.
Simpanan tujuan khas
Simpanan ini khusus untuk matlamat jangka pendek dan sederhana anda, seperti melancong, membeli kereta, deposit rumah, ataupun untuk berkahwin. Memandangkan simpanan lain telah diperuntukkan, anda boleh meletakkan 10% dari gaji untuk tujuan ini.Jika anda ingin menggunakan kelebihan faedah atau dividen pada masa akan datang, laburkan simpanan in ke unit amanah ataupun deposit tetap.
Mula dari sekarang
Ia tidak pernah terlalu lewat untuk mula menyimpan untuk diri anda. Selain itu, jangan bergantung kepada satu sumber pendapatan sahaja. Cuba cari kerja sambilan atau freelance untuk menambah pendapatan di luar waktu kerja. Tetapi, jangan lupa untuk pastikan hutang yang sedia ada dibayar!
Disclaimer: Neither CompareHero.my nor the content on it is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. The content on CompareHero.my is for general information purposes only and is not intended to be personalised investment advice or a solicitation for the purchase or sale of securities.
Compargo Malaysia Sdn. Bhd. and/or its affiliates cannot and do not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. CompareHero.my may receive compensation from the brands or services mentioned on this website.
Read More
5 Ways To Control Your Family Budget
- By CompareHero.my
Try to remember the time when you got your first paycheck. Chances are that it didn’t come with a set of instructions on how to best manage it or where to park it or what to do with it. And we’re left to figure it out on our own.
Let’s assume that for the first few years after entering the working world, we somehow managed to manage our money decently without any huge setbacks. But one day, out of the blue, you decided to slide a ring onto the finger of your significant other and just two blinks later, you find out that you’re about to welcome your little human into this world.
What now? You’ve experienced first-hand how many things there is to learn about managing finances and you know that you’re nowhere close to being prepared. With that, here are 5 tips on how to properly and safely manage your family budget.
Contents
1. Set goals
Before even thinking about how to plan it out, you need to figure out what is important to you. This will answer why you’re doing what you’re doing and will be the anchor point when things get tough. For example, you might want your family to live without worrying about money or have enough in the bank that you can take a vacation to Iceland.
When setting goals, less is more. You don’t want to complicate things. Knowing what you want out of saving money will allow you to design your plans easily.
This plan will then consist of how much you need to save and a time frame to go along with it. Using this, go from top to the bottom and think about how you’ll achieve this. Be realistic when doing it. You can always gradually increase your ambitions later.
2. Calculate average income and expenses
Reaction to expenses
This part is entirely about the flow of cash. Just like running a business or a country, you have to know how much is coming in and out. Include as many details as you can: wages (net), commissions, side hustles, government benefits, investments, etc. And not to forget the expenses: groceries, emergency fund, debt payments, etc.
It could be quite a chore at the beginning, especially with the little payment such as parking tickets or the Mentos from 7-eleven, but tracking your money grants you another level of awareness that you didn’t have before. And with that awareness, comes the ability to make positive adjustments.
3. Analyse spending
You may realise when you track your cash flow that there could be quite a lot of ‘wants’ instead of ‘needs’. If that is the case, you’d probably want to learn a few techniques to combat impulse spending as the opposite case is having your money slowly leaking out.
Related: 6 Ways To Stop Impulse Shopping
The key to good money management is to know whether something is a need or a want. If you aren’t sure, try to live without it for a period of time. But to be entirely truthful, almost everything you buy has an element of a need and a want, the question is whether or not it will help you reach your goals.
4. Revisit the original budget
After a month or two, you’ll have a much clearer picture of your finances. And that includes the areas that need adjusting. We live lives that are constantly changing and therefore, no plan or budget can stay the same forever. It may be a slight difference from when you first did the estimation or it may be that you’ve since gotten a raise.
The notion is to have periodic reviews to always be on top of your finances and improve the efficiency of your plan. Take into account the seasonal expenses as well so that it doesn’t come as a surprise to your plan. Ultimately, it will help you avoid the stress of debt and give you the room to make tiny mistakes.
Related: 7 Budgeting Management Apps That Can Help You Track Your Expenses For Free
5. Stay committed
As you become more and more in the habit of managing your family’s budget effectively, the plan will feel more natural and become a way of life in your household. Some of the planning or budgeting may even feel easier after a period of time.
Happy family
Stay committed to the goal that initially got you started with the entire process. After all, the goal is only as good if it is realised. Life happens, don’t take it way too strictly and cut out every kind of entertainment.
But having a solid foundation of how to better manage your money as a family allows you to come out ahead rather than in debt. Who knows, you might even be able to afford your dream home just because of this!
Read More
Pros And Cons Of Investing In A Stock Index
- By CompareHero.my
- June 3, 2021
A stock index fund is becoming increasingly popular as investors seek investments that are a little easier to manage.
An index fund is designed to match the investment results of a specific market index. That said, it can consist of either stocks or bonds in its portfolio. The difference when comparing index funds is the tactics that they employ to achieve the desired returns.
Just like any other product in the market, an index fund has its pros and cons. If you still think that it’s a great tool that you can employ, then, by all means, go for an index fund because they are one of the simplest types of investments you can make.
Contents
Green plant
Pros
Less risk
The biggest advantage to choose an index fund over individual stocks is that they have a relatively low risk that is designed just for long-term growth. Intrinsically, they are already diversified enough with stakes in different sectors within an index. This really protects the investor against any big losses.
Low fees
The easy comparison is that index funds offer lower fees compared to non-index funds. This is important because when you have high fees, your returns must exceed the fees or you’ll be walking away with the same amount of money as you started.
Another reason for those higher fees from the non-index funds is that they are actively managed and have more transactions. When these small transactions are done multiple times, the fees can really add up.
Avoid market swings
Another reason why an index fund is geared towards long-term investors is that it removes a lot of short-term volatility. This short-term volatility will often be regarded as a mere correction in the market that will very likely recover eventually as markets generally balance over the long term.
In other words, that means passive investors can automate their investments each month and they are more than likely to be in profits over the long term.
Require less management
If you do not have much experience in the financial markets or do not have a lot of time to follow the financial news, index funds are perfect for you. Firstly, it’s because you’re not buying one single stock, therefore eliminating the risk of having any bad news affect your portfolio.
Secondly, you don’t have to learn to time the market. Just provide the money every single month and dollar-cost-average into the index fund of your choice and leave it. The market and compound interest will take care of you.
Related: The Ultimate Guide To ETF in Malaysia: How Do they work?
Good things take time
Cons
No exponential gains
An index fund does not have the potential to outperform the market in a way that actively managed funds can. That’s mostly owed to the fact that it is heavily diversified. So what it means is that you will be giving up the possibility of exponentially growing your portfolio.
It’s the same story as the Hare & the Tortoise. The Hare is an actively managed funds, the Tortoise is an index fund. Would you rather have ‘slow and steady wins the race’ or ‘take the risk and hope for a bigger reward?’
Lack of flexibility
Index funds are special in the sense that they must follow certain policies that help them perform in tandem with an index but that comes with the price of less flexibility compared to managed funds.
In periods where there is minimal volatility, there wouldn’t be much of an impact. But when the market is experiencing higher-than-normal volatility, managed funds trumps as they have the flexibility to profit from other options while index funds cannot.
Takes a long time
Although investing in individual stocks can be choppy and sometimes dangerous, but for professional investors, there is a much bigger profit potential than there is in an index fund. Finding good stocks is how an investor beat the market and get ahead in this game.
However, for an index fund, your returns are mostly on par with the overall market. That means your returns will most likely be under 10% annually. Don’t get me wrong, 10% is a very good number but understand that this is the best-case scenario as you might get lesser during economic downturns.
Unexpected concentration
It is a known fact that the market ebbs and flows. And following that is the fact that some sectors and industries will perform better than others. For example, the technology stocks in the US stock markets such as Apple, Google and Microsoft has greatly outperformed the average by a wide margin.
From another perspective, if a certain index fund is heavily concentrated on a certain sector, any huge news within this sector might cause the index fund to fluctuate.
Related: 7 Investment Lessons You Should Learn From Successful Investors
Final thoughts
Generally speaking, index funds are a great way to invest for the average proletariat as they offer good market exposure with minimal risks. Nonetheless, just like other investments, you have to know what you’re getting into first before diving in—the good and the bad. Any kind of investment involves risk, it’s a matter of what is more suitable for your situation.
Read More
How To Start A Franchise Business In Malaysia: A Step-By-Step Guide
- By CompareHero.my
- June 2, 2021
Ever wonder how big brands like Chatime and Burger King manage to have stores wherever you go? It’s like they are everywhere. Brands such as these are able to expand their brand and business exponentially through a business concept called franchising.
In a franchise agreement, local entrepreneurs, under certain conditions, are permitted to carry the brand and sell products and services related to a particular brand, without actually owning the brand. This has several benefits for both parties. Franchising allows multinationals to expand their business and brand throughout the world with minimal investments and with little worry about local corporate structures. Additionally, it grants local entrepreneurs the recognition of a global brand and easy access to benefits and services that are normally only affordable for large companies.
Starting a business through franchising is becoming more and more common in Malaysia. It can be a good way to reduce the risks commonly associated with start-ups. The Malaysian government has put out an ambitious target for the franchise industry to contribute 9.4% to gross domestic product by 2020. It aims to make Malaysia emerge as a leading franchise hub in the region.
Deciding which franchise you’ll go with is an important decision. It is critical to have a thorough understanding of everything there is to know about the particular franchise you aim to join. With a little bit of research, you can spot a bad franchise offer a mile away. We’ve assembled a handy list with the best things for you to do to help you start your own franchise.
Related: What is Franchising?
Contents
1. Do a survey
So you’ve decided to start a franchise, great! The first thing to do is to find out if there actually is demand for your intended product or service. You’ll operate like a regular business, so that means you will have competitors. On top of that, franchises don’t usually come with an exclusive territory. Which basically means that apart from competing with other businesses, you could also be competing against other franchisees with the same brand.
It is therefore recommended to do some market research and conduct a survey. Do people actually want another outlet like this? Are they familiar with the brand? What is the competition like? Those are all important questions that can provide you with invaluable insights regarding the territory and customer base being offered.
Related: Starting A Business In Today’s COVID-19 World – Yay Or Nay?
2. Attend franchise events
After you’ve confirmed that there is adequate demand, you might first want to get a general idea of what you are getting into. A good way to get a feel your possibilities is to attend franchising events. These events are generally organised by franchisors looking for franchisees, franchise mediation companies, or franchise regulatory bodies.
During these events, you can network with representatives of these three parties and see what options there are for the location that you had in mind. Be careful, though, as the franchise stalls are generally manned by sales people who will try to convince you that their franchise is the best choice.
But if you can handle that, a franchise event is a great way to get your feet wet. If you hadn’t already, this might be a good time to zero in on a particular business sector.
3. Do a web search
Once you have found a suitable business sector, it’s time for due diligence. In order for you to determine which franchise offer is the best within your desired business sector, you will have to do a lot of research. To make it a little easier for you, we’ve listed a few of the most important aspects you should take into account when comparing franchise offers.
- Initial entry fee
- Royalties
- The percentage of annual sales paid to the franchiser
- Contribution to shared services (advertising)
- Software rental
- Equipment maintenance
- Audit
- Administrative services
- Initial inventory
- Store construction expenses
Most of this info should be public knowledge and can predominantly be found in the franchise offers that franchisors publish on their website. Once you have collected all this information it’s time for your first comparison. Compare all franchise offerings within your sector and eliminate the ones that are outside of your budget or that are unavailable in your location.
That should narrow your list down quite a lot. Ideally, you would now have 4-5 suitable franchise offers remaining. Next, conduct a thorough business analysis of the companies that remain.
Get as familiar with these businesses as if you would own them. If the companies are publicly listed you should have all the information at your fingertips. Annual reports, financial statements, market challenges, future expectations – everything is relevant. Pay special attention to percentage figures on franchise turnover. If most of the new franchisees default within a few years, then you are most likely taking a bad deal.
A good way to interpret all this data is through key performance indicators (KPI’s). A quick online search will tell you the most important KPI’s for your particular industry. If you have no business experience or if you are struggling, hire an accountant to help you sort this out. A thorough background check can be invaluable if it prevents you from taking a bad franchise offer.
4. Visit the franchises
Now that you have a thorough understanding of all these businesses, it’s time to get out there and check things out for yourself. Get a feel for the places you visit. You might have visited a McDonald’s 100 times in your life, but you will perceive it very differently if you go there with the intention to scout a potential business.
The goal is to get a feel for the day-to-day operation. How is the personnel managed? What is the average waiting time? Is it crowded at peak hours? What if that extremely easy-to-operate restaurant chain with guaranteed profits turns out to be a dump that stands empty half the day? The quickest way to find out is to go see for yourself.
If you are persuasive, you might even get the local manager to spill the beans about the inner workings of the franchise, as they are not always happy with their franchise agreement.
5. Talk to former franchisees
Talking to a former franchisee of your target franchise can be incredibly valuable. They have a load of experience that you can benefit from as it relates to running this particular franchise business. What are the pitfalls? Are there any problems with the business model? And most importantly, why did they quit?
6. Consult with the Malaysian Franchise Association (MFA)
In the early 1990’s the Malaysian government identified high franchise rates as a strong economic driver. As a reaction, the MFA was created by the Malaysian government to help create a franchise-friendly economic environment. They organise events, support franchisees and offer training courses that help franchise entrepreneurs make their businesses a success. They can be a great resource and aid when you are trying to get your business off the ground.
7. Ask consultants or lawyers
Apart from consulting your own lawyer, you can also consult with an independent franchise consultant. These are usually lawyers who specialise in franchise agreements. These lawyers can provide excellent insights that your regular lawyer might miss.
Alternatively, the franchisor might have an in-house franchise consultant that aids prospect franchisees with the legal side of getting their business up and running. You typically don’t pay a fee, as the consultant will get a cut from the franchisor if you sign up.
8. Draw up your business plan
By now, you should ideally know which franchise you are going to join. It is time to draw up your business plan. A business plan is a written description of your business’s future. This document will basically be the blueprint of your company. If you need external financing, a strong business plan can persuade prospect investors to supply you with capital. Apart from that, it can be a guideline for your first few years of operation.
Writing a good business plan is exceedingly difficult because you will have to make estimates about the future performance of your business, which is subject to a lot of uncertainty. Be conservative in your revenue and profit estimates and include a broad scenario and risk analysis to cover all your bases. How to truly write a great business plan is probably beyond the scope of this article, but don’t forget that your franchisor can be a great help with this. They will likely have a model business plan from which you can start.
Additionally, the franchisor most likely has a lot of data from other franchisees which, if interpreted properly, can help make your own revenue estimates more realistic.
During this step, you might even conclude that your proposed business is actually not as viable as you previously thought. Which is completely fine, it’s better if you find out now than after you started your business. To help you get started, we’ve included a list of areas that are essential in any business plan:
- General company description
- Operational: overview of products and services offered / personnel/hours / suppliers
- Marketing: branding strategy / customer engagement / marketing mix analysis
- Legal: Analysis of legal environment/tax implications / proposed business form
- Financial: capital needs / break-even point / revenue estimates / pro forma financial statements
- Liability measures / Insurance structure
9. File your franchise agreement
Once you have done all the above, and you are still confident you want to go forward, it is time to officially file your franchise. In order to validate your partnership with the franchisor, you’ll need to sign and register a franchise agreement.
All franchise agreements must be registered with the Franchise Registry. A franchise agreement needs to contain the following things:
- The name and description of the product and business under the franchise.
- The territorial rights granted to the franchisee; 20 Laws of Malaysia ACT 590.
- The franchise fee, promotion fee, royalty or any related type of payment which may be imposed on the franchisee, if any.
- The obligations of the franchisor.
- The obligations of the franchisee.
- The franchisee’s rights to use the mark or any other intellectual property, pending the registration or after the registration of the franchise.
- The conditions under which the franchisee may assign the rights under the franchise
- A statement on the cooling off period as provided in subsection
- A description pertaining to the mark or any other intellectual property owned or related to the franchisor which is used in the franchise
- If the agreement is related to a master franchisee, the franchisor’s identity and the rights obtained by the master franchisee from the franchisor
- The type and particulars of assistance provided by the franchisor
- The duration of the franchise and the terms of renewal
- The effect of termination or expiration of the franchise agreement
As you’ve seen, starting a franchise requires a lot of preparation. Be smart about it and do some research before you jump head first into the franchise business. It will most likely increase the chance of your business being a success.
Related: 50 Low Cost Franchises In Malaysia You Can Join Right Now
CompareHero.my strives to empower Malaysians with financial literacy and the tools to make better financial decisions in life. Find and compare the best credit cards, personal loans, travel insurance and car insurance on CompareHero.my today.
About the writer
Jesse is a Guest Writer at CompareHero.my. A business student with a passion for finance and football, he is interested in new cultures and stepping out of his comfort zone.
Disclaimer: Neither CompareHero.my nor the content on it is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. The content on CompareHero.my is for general information purposes only and is not intended to be personalised investment advice or a solicitation for the purchase or sale of securities.
Compargo Malaysia Sdn. Bhd. and/or its affiliates cannot and do not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. CompareHero.my may receive compensation from the brands or services mentioned on this website.
Read More
Beginner’s Guide To Stock Investment In Malaysia
- By CompareHero.my
Have you always wanted to start investing but thought that you needed a large sum of money to start? Guess what, there’s actually no minimum amount needed for you to start investing! Learn how you can start investing and where you should invest!
Contents
What is investing?
Let’s begin with the fundamentals before we delve into how to invest. Although you may think of making an investment as something complicated, the concept is actually quite simple. What it really means, is to invest and make your money work for you by getting more money out of the initial amount.
However, in order to fully reap the benefits from your investment, one would need to understand the concept of compounding as well as understand the concept of delayed gratification. The compounding factor is a great friend to investors as it lets you see your money grow. As for delayed gratification, this means that most investments are long term and you will need to sit on your hands for a bit before you really see the rewards of your investment.
Aside from that, there are also certain guidelines to follow in order to ensure your investment does not turn out as a flop, although all investment do involve some risk. The difference is the level of risk involved in different types of investment vehicles.
Before you dip your toes into the world of investment, read up on investment lessons you should learn from successful investors to give yourself a head start!
Now that you have a basic idea on what investment is all about, you may be excited to jump into the real action. Below are some investment suggestions suitable for beginners:
Fixed deposit
This can be considered among the safest ways to invest, and is an ideal option for first time investors and for those who do not feel comfortable taking on too much risk. Among the advantage of investing in fixed deposits aside from the low risk, it also gives you the potential of regular earnings. When you invest money into fixed deposit it will mean that you put a certain amount into a bank account for a specific duration.
The bank will then give you interest for the money you put into their fixed deposit accounts. This is a better option for those who keep their money in a savings account and only get interest returns that are lower than the inflation rate. Which means you lose out by keeping your money in a savings account, but a fixed deposit can make your money work for you at minimal risk and can help you beat inflation!
Although you will not get access to the initial amount you put in until a fixed period, some banks will let you collect the interest earned from fixed deposits. Although it should be noted that this will vary between monthly or yearly pay outs, depending on the period of your fixed deposit.
However, as you will not be taking on too much risk compared to other options of investment, the returns will also be significantly lower than other types of investment.
Unit trust
Unit trust is a type of collective investment where your money will be pooled with other investors. So unit trust is like investing in a group, and the pooled amount of money is known as fund’s assets. The funds will then be invested into a portfolio of diversified assets and managed by a fund manager. When you invest in unit trust, you will be buying units and depending on your budget, you can decide how many units you want to invest initially before you buy additionally units in the future.
Unit trust is also ideal for those new to investing as it gives them the opportunity to invest in a diversified portfolio which will then be professionally managed.
Stock market
Another option you can consider would be to invest in the stock market. If you want to invest in stock market in Malaysia, you would need to trade stocks on Bursa Malaysia.
But in order to invest in the stock market, you must be willing to learn as investing in the stock market will require some skills and research unless you engage a broker which will then incur you extra costs. In order to get started you will need to acquire some stocks before you begin trading. In Bursa Malaysia, the minimum number of shares or stocks you can buy or sell per transaction is 100 units. For example, if the share is price at RM1 per unit, you will need at least RM100.
If you are interested with current economic movements, investing in the stock market may be right up your alley too as the economy has an impact on shares. Before embarking on trading shares, make sure you are prepared for changes as the stock market is not for the weak hearted. But when done right, you will be reaping the rewards!
What to look out for before investing
Excessive fees
For certain investments such as unit trust, there will be transaction fees involved. What you need to look out for are high investment fees and to stay away from it as it will then affect and minimize the return you get from your investment.
Agents
Some people opt to use services from agents who will do all the investing for you, and they will then have their share of what you make from the investment. As for the stock market, some people also choose to get a stock broker to do the work for them. All this will incur cost and you should compare and get the best deal as charges will vary.
Investment scams
Like the saying, “if it sounds too good to be true, it probably is”, the same goes for investment. If you are promised high returns at a short amount of time for example, beware! Aside from that, be vigilant and keep yourself updated with investment scams, and learn how to spot an investment scam to keep yourself protected.
A golden rule to always remember when investing is “do not put all your eggs in the same basket”, simply meaning that you should not put all your resources into one place, or you could lose them all at once. Ultimately, you will need to take into account how much risk you are comfortable with taking on, the amount of money you can afford to invest and your preference before you make a decision.
Disclaimer: Neither CompareHero.my nor the content on it is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. The content on CompareHero.my is for general information purposes only and is not intended to be personalised investment advice or a solicitation for the purchase or sale of securities.
Compargo Malaysia Sdn. Bhd. and/or its affiliates cannot and do not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. CompareHero.my may receive compensation from the brands or services mentioned on this website.
