Types of Investment

Savings Account

It is hardly the best investments choice. Everyone or anybody should at least have one savings account, if not multiple ones in different banks. Savings account gives you an interest rate usually it’s a negligible amount, something like 1% per annum.

Fixed Deposit

We can normally decide how long you’d like to lock in your money in fixed deposit, the longer the period, the higher the returns. Fixed deposit interest ranges from 3%-4% per annum.

Tabung Haji

Some people would leave invest their money in tabung haji, which they could use to finance their haj to Makkah. Last year, the dividend was declared at 4.25%, comparable to fixed deposit returns.

EPF (KWSP)

Account 1 is for retirement fund and investment, whereas account 2 is for major purchases, such as buying a house. Last year, the dividend was declared at 5.15%

ASB (Amanah Saham Bumiputera)

This is a form of unit trust which gives rather good returns. The average returns at the moment were

7%(2008 and 7.3%(2009).

Unit Trust

The returns for this investment vehicle can range from 8%-12% although in some years, the performance actually far exceeds 8% returns per year.

Stock Market

If you have the guts and knowledge to play the stock market, it is definitely a place that can give you fast and lucrative returns in a short time. Of course that being said, it can also be the vehicle that makes you lose all your money equally fast.

Foreign exchange

If you have the skills and knowledge to analyse the forex market, you can make a killing speculating on the rise and fall of currency rates of major currencies. Profit can be very lucrative, forex being the largest market in the world, but just like stocks, it can drain your money in a blink of an eye if you don’t know what you’re doing.

PRUvantage from Prudential

Personally, I want to recommend you’ll put your money into PRUvantage, a universal life plan by Prudential. With this plan, you will have a medical plan for hospitalisation, a lump sum of money should you be diagnosed with critical illness and you can build your retirement fund which can be withdraw when you 60, projected at about 5.4% per annum. With this, you can cover all your bases and have some form of peace of mind should anything untoward happens in the future.