3 Types Of Investments To Grow Your Capital
No matter your income, age
or capital you have, there are a variety of digital platforms to help you
invest and put your money to work. Investing is a great way to grow the value
of your money and chart your path to financial security. Want to invest your
money but unsure of what to invest in? From public listed company stocks to mutual funds,
here are a few money market instruments that you can invest in according to
your risk tolerance level and capital amount.
- Stocks
Stocks are “shares” of ownership in a particular company, when you own stocks in a company, it means that you are a partial owner of the company. When the company makes profit for the year and grows in market value, the value of the stock you own will also grow. Alternatively, as a shareholder you can also receive dividends if the company chooses to distribute earnings. For stock buyers, it’s best to conduct an in-depth research on targeted companies before investing to achieve higher returns and minimise financial risks.
Risk appetite: Medium to high, as stocks value can be volatile depending on the market performance
Best for: Investors with a
well-diversified portfolio
Where to buy: Online brokers
- Mutual funds
A mutual fund is a pool of money from various investors, and these money are invested broadly in a number of companies. Mutual funds can be passively managed or actively managed by a fund manager, and the portfolio consists of a wide array of market instruments: equities, bonds, commodities, currencies and more. Compared to stocks, investing in mutual funds is relatively less riskier. It offers investors an affordable way to diversify their investment portfolio by spreading their capital across multiple investments.
Risk appetite: For investors with medium risk appetite, or those who wants to reap investment returns without having to manage individual stocks
Best for: Long-term goals such as
retirement savings or buying a house
Where to buy: Investment fund companies,
brokerage firms
- Bonds
Bonds are generally issued by businesses or a government entity — companies issue corporate bonds while governments issue treasury bonds. When you purchase a bond, you are essentially lending money to the entity and you’ll gain interest payments in return. When the bond matures, you cash in the bond and enjoy your capital return in the form of interest payments. The rate of return for bonds is typically much lower than it is for mutual funds and stocks, nevertheless, it is a very safe form of investment.
Risk appetite: For investors with low risk appetite, those who are close to retirement or younger investors who seek a stable return
Best for: Treasury bonds provide a
steady flow of return to offset the volatility of other investments in their
portfolio
Where to buy: Stock market, corporate
market
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Looking for established
public listed companies to invest in? Investing in the reinsurance industry can
be a potential source for high returns. Malaysian National Reinsurance Berhad
(MNRB) is the national reinsurer of Malaysia, and has business ties throughout
Southeast Asia and the Middle East. With an established business portfolio, the
MNRB Group comprises leading providers of reinsurance and retakaful as well as
two takaful operators.
Visit https://www.mnrb.com.my/investor-relations for more information on MNRB’s financial position and profit performance.