What is investing?

What is investing?

As investing is part of our journey to accumulate our wealth, we have to take it seriously and understand what we are doing and how it will help in our wealth accumulation. By simple street definition, investing means putting your money into a product that can give you return. Below are some brief ideas for the product that I can think of.

What are the product available for a Malaysian / Foreigner residing in Malaysia able to invest?

• StockMarket – Including Equity and Derivative market
• Bank Structure product – Paper commodity ( Gold , Silver)  / Equity link note       Dual Currency Investment
• FundMarket – Including Foreign or Local , mutual , Islamic ,hedge Fund
• Property Market  - Including landed, Condo, Resort, Shop
• Insurance – Including Investment linked, Saving plan, Cash back insurance
• Fixed Deposit – Including conventional or Islamic ,Cash money management Fund
• Joint Business –Including all startup business, Venture Capital ,Private Equity

All the above Products have their own specification and characteristic, it is not necessary to have all of them in your portfolio but it is better to have a few in your own portfolio designed to your personality and desired goal.

Who should you look for the respective product?

•         Stock Market – Licensed Dealer / Remisier 
•      Bank Structure product – Licensed Dealer /Personal or Premier Banker
•             Fund Market – Licensed Fund advisor / Bank Personal Banker
•             Property Market  - Licensed Property agent and agency
•             Insurance – Insurance agent / Bancassurance
•            Fixed Deposit – Banker / Investment Banker
•            Joint Business – Find a solid partner or franchise or Manager

How should you go for each product?

There are no shortcuts for all kind of investment. Knowledge is the first thing that you need to acquire before you get into a particular investment product. Strategy should come next. People who have knowledge and understand own personality will succeed in investment. People with strategy will also be able to get return in long run even though sometimes they might get caught in wrong market cycle or investment decisions.

Why should you go for each product?

•             Stock Market – Low Entry barrier, Full access to the product
•             Bank Structure product – Variety of investment, Diversifications
•             Fund Market – Low Entry, Managed by professional
•             Property Market  - Best hedge product to Inflation
•             Insurance – Best protection product, hassle free on potential total loss
•            Fixed Deposit – Safest Product to preserve capital
•            Joint Business – 100% self decision making and make sure everything toward your vision

In summary, we should understand each of the products by consulting the professional (Shall always do this as this is the responsibility of the professional). Beside that, invest what you can afford and set your goal before you commit to it.

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