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How To Start Investing In Malaysia (Beginner’s Guide)

Investing can be an intimidating journey, especially if you’re new to the financial world. In the context of the Malaysian investment landscape, understanding the fundamentals and various options can make the journey smoother and more rewarding.

How To Start Investing in Malaysia
How To Invest in Malaysia (Beginner's Guide)

Here Are 5 Things You Need To Know Before Investing In Malaysia (Comprehensive Beginner Guide)

Understanding Your Investment Goals and Risk Tolerance

Before investing, you need to identify your financial goals and understand your risk tolerance. This can provide you with a roadmap for your investment journey, guiding you in selecting the right investment vehicles and strategies.

You can ask yourself these questions when figuring out your investment goals and risk tolerance:

  1. What am I investing for? (e.g., Retirement, buying a home, children's education)

  2. When will I need the money? (e.g., In 5 years, 10 years, 30 years - here’s a cheat sheet on how you can do this)

  3. What is my expected return on investment? (e.g., Do I want to preserve capital, or am I aiming for high growth?)

  4. How much money do I need to reach my financial goals? (e.g., Do I need RM500,000 for a home down payment?)

  5. How much can I comfortably invest regularly? (e.g., Monthly or annually?)

  6. How comfortable am I with losing some or all of my investment?

  7. What is my financial situation? (e.g., Do I have debts, an emergency fund, stable income?)

  8. Have I ever invested before, and how did I react to market fluctuations? (e.g., Was I stressed when my investment value decreased?)

  9. What is my investment time horizon? (e.g., Am I investing for a short-term goal or long-term growth?)

  10. How actively involved do I want to be in managing my investments? (e.g., Am I interested in actively trading, or do I prefer a more hands-off approach like a managed fund?)

To give you a picture of why understanding your financial goals and risk tolerance is important, take a look at this example:

If you're saving for retirement 30 years down the road, you might consider riskier investments like stocks, which may offer higher returns over the long term. Conversely, if you're saving for a down payment on a house in 5 years, a more conservative approach with fixed deposits or bonds may be suitable.

Start with a Solid Financial Foundation

Building an emergency fund and reducing high-interest debts should be your priority.

A general rule of thumb is to have at least 3 months' worth of your expenses as your emergency fund. Meanwhile, when it comes to reducing your debt, you can consider the Avalance Debt Repayment Method or the Debt Snowball Method.

By doing this, not only will you have a taste of financial security, but you will also be able to take calculated investment risks without jeopardizing your immediate financial stability. Think of it as a financial cushion, softening the blow should there be one.

Explore Different Investment Options

In Malaysia, there are various investment avenues catering to different risk levels and goals. Your job is to find one that aligns with your goals and suits your risk tolerance the best.

Here are some investment vehicles you can consider.

a. Savings Accounts and Fixed Deposits

Example: BSN offers Term Deposits with different tenure options. Investing RM1,000 in a 12-month fixed deposit may provide a 3.35% return, a safe and guaranteed option.

b. Government and Corporate Bonds

Example: Malaysian Government Securities (MGS) are considered safe and provide regular interest. A 10-year MGS might yield around 3-4% per annum. You can buy government and corporate bonds either through Bursa Malaysia or over-the-counter (OTC) at appointed banks.

c. Unit Trust Funds

Example: Investment banks like Kenanga, Affin Hwang, and Public Mutual offer various unit trust funds. Check out FSMOne to pick out a unit trust that’s best for you.

d. Stock Market

Example: Investing in blue-chip companies like Maybank or META, which has historically shown steady growth, can be a starting point for stock investment.

To invest in US stock, check out M+ Global. Don’t forget to use our code: T30E and if you deposit RM1,000, you stand a chance to win a mystery share!

e. ETFs and REITs

Example: ETFs like MYTHEO Omakase or Vanguard 500 Index Fund ETF can diversify your portfolio, ensuring you’re not putting all your eggs in one basket. Meanwhile, Sunway REIT allows investment in Sunway's real estate properties, providing regular income through dividends.

Invest in the most diversified ETF in Malaysia using MYTHEO. Use our code: MMTV1 to get 6 months of fee-free investing!

f. Robo-Advisors

Example: StashAway, a robo-advisor platform in Malaysia, customizes a portfolio for you based on your risk tolerance and goals, even allowing investment with as little as RM10.

Diversification Is Key

Putting all your money into a single investment can be risky as it exposes you to market threats that can potentially lead to significant financial loss if that particular investment performs poorly.

So, instead of investing RM10,000 solely in let’s say, Maybank stocks, you should instead spread the investment across different sectors, including technology, healthcare, and consumer goods, to reduce risk.

This is because we will never know when market sentiment towards Maybank may change and if you’re not in tune with the latest news about it, you might find yourself in a sinking ship, unable to recover your losses.

Regularly Monitor and Review

If there’s one thing you should take away from this article is that investment is not a 'set and forget' process.

You need to regularly review it to make sure that your investments still align with both your personal and financial goals as well as risk tolerance. This is especially true in the constantly changing market environment we find ourselves in to ensure we achieve long-term success and financial security.


Starting your investment journey in Malaysia, even if you’re a beginner and only have a small budget, is entirely feasible. Simply by understanding your financial goals, risk tolerance, and taking practical steps, you can begin building your financial future. The key is to start small, learn continually, and gradually grow your investments in alignment with your comfort and objectives.

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