7 Low-Risk Investment
Many individuals started thinking about ways to boost the worth of money as a result of the terrible inflation that has spread around the world, to which our nation is not immune, as well as the ringgit’s depreciation.
Investing is the most popular approach to increase the value of your money. But among the many investing methods available, some offer great profits but also huge hazards, and low-risk solutions can nonetheless produce modest investment returns.
Time deposits, money market funds, SSPN education savings funds, ASNB funds, and EPF provident funds are examples of low-risk investing instruments.
Here is a comparison of the yields of different low-risk investing options using RM 10,000 as the benchmark.
1. Ordinary savings account
An standard savings account has a yearly interest rate of around 0.25 percent, and if you deposit RM10,000, you would receive RM25 in interest.
2. Ordinary Fixed Deposit
Now the 12-month ordinary time deposit annual interest rate is about 2.10%, after depositing RM10,000 for 12 months, the interest you can get is RM210. This yield exceeds the yield of a typical savings account by nearly 8 times.
3. Money Market Funds
In general, money market funds have a somewhat greater annual rate of return than time deposits. As an example, let’s use the yearly rate of 2.20 percent p.a. The amount of money you can make after a year of storage is RM220.
4. Fixed Deposit Offer
A number of domestic banks will occasionally provide time deposit discounts, which will result in greater interest rates than typical time deposits. The annual interest rate you can receive if you deposit a 12-month fixed deposit discount is approximately 2.50 percent. Deposit RM10,000 to receive RM250 at this APR, which is around RM40 more than a typical fixed deposit.
5. SSPN
This year, the government’s education savings fund, SSPN, has a 3% dividend payment ratio. For a deposit of RM10,000, the gain will be RM300 for a full year.
6. ASNB
A trust fund managed by the PNB is called ASNB. The interest earned after investing RM10,000 for a year will be RM400 thanks to ASM’s 4 percent dividend payout ratio.
7. EPF
The interest gained after investing RM10,000 is around RM610, while the EPF payout ratio for this year is 6.10 %.
