What is Investment & How to Invest in Bank in Malaysia?
Investment
Simply put, investment is about acquiring something with the hope that it would appreciate. It is all about getting your money or some asset to work. You put away some money or you buy something with it, in the hope that it would generate future income.
There are various things that could qualify as investment –
- It could be money
- It could be real estate
- It could be stocks and bonds
- Expensive jewelry
- It could be pursuing some additional education in the hope of it helping increase income later
There are different types of investment. Here is a couple of them –
- Stocks and shares are the first thing that comes to mind when one thinks about investment. When you buy stocks or shares in a company, you buy a small bit of that company’s earnings and assets. You make money when that company does well. But if it doesn’t, then you’re sunk.
- Mutual Funds are another kind of investment where the funds from many investors are pooled together and then invested in maybe stocks or bonds.
Some of the ways you could do that include –
- Savings Account – you deposit your money in a bank and the bank pays you interest for the money that you have put in there. You have access to your money so anytime you change your mind, you can just take your money out.
- Fixed Deposits – here you put some money that you don’t quite need right now in a fixed deposit and the bank pays you interest. There is a fixed term – during which time, you don’t have access to your money. (Well you do, but for a charge). The interest rates are higher than what you get for Savings Accounts.
But whether you choose to invest in a Bank or outside, it is a good idea to invest. There are several advantages of investing well.
- Your money grows over time.
- It helps you build your wealth
- It helps you meet your financial goals
- It can help you save on taxes