7 initiatives for low-risk investments
Since the ringgit has been declining and there has been a serious global outbreak of inflation, many individuals have started to think about ways to boost the worth of money.
Investing is the most popular approach to increase the value of your money. But among the many investment methods available, some offer great yields but also substantial dangers, and low-risk tools can nevertheless produce modest profits.
Fixed deposits, money market funds, SSPN education savings funds, ASNB funds, and EPF provident funds are examples of low-risk investing instruments.
Here is a yield comparison of these low-risk investment vehicles using RM 10,000 as the benchmark (as of August 21, 2022).
1. Ordinary savings account
When you put RM10,000 into an average savings account, which has an annual interest rate of roughly 0.25 percent, you would receive RM25 in interest.
2. Ordinary Fixed Deposit
With a deposit of RM10,000 for a period of 12 months and an annual interest rate of around 2.35%, you will earn RM235 in interest. This yield exceeds the yield of a typical savings account by nearly 9 times.
3. Money Market Funds
In general, money market funds have a somewhat greater annual rate of return than time deposits. Here, we’ll use a sample yearly rate of 2.40% p.a. The amount of money you can make after a year of storage is RM220.
4. Fixed Deposit Offer
Different domestic banks will occasionally provide fixed deposit discounts, which will result in greater interest rates than typical time deposits. The annual interest rate you can receive on a 12-month fixed deposit is roughly 3.20%. Deposit RM10,000 to receive RM320 at this APR, which is around RM85 more than a typical fixed deposit.
5. SSPN
This year, the government’s education savings fund, SSPN, has a 3% dividend distribution ratio. For a deposit of RM10,000, the gain will be RM300 for a whole year.
6. ASNB
A trust fund managed by the National Investment Corporation (PNB) is called ASNB. The interest earned after depositing RM10,000 for a year will be RM400 due to ASM’s 4% dividend payment ratio.
7. EPF
This year’s EPF payout ratio is 6.10%, and after depositing RM 10,000, the interest earned is roughly RM 610.
