Investment

DEFINITIONS
Investment is the action of placing funds for a period to obtain the required rate of return, with fully aware of the risks involved. The thing to remember though is that the rate of return can be expected, it is not guaranteed.

There are several different types of investments in Malaysia

Fixed Deposit Account / Investment Accounts
- Investing in bank / financial institution.
- Investment without risk.
- The advantages are low.
- Saving for a specific period.
Pros:
1. Return and equipment.
2. Secure Storage.
3. Savings may be issued upon request.

Real Estate-like land purchase, shop / office, home, farm and so on.
- Receive returns in the form of capital gains and current income.

Stock
-Investment Made by Company. Limited to get a return in the form of dividends or bonus.
- Interest Company Limited issued shares is to raise capital for developing the company.
- 2 types:
~ Share listed.- company shares traded on the stock market.
~ Shares are not listed. - Shares that are not traded on the stock market
formally.

A trust- unit investment that pools money from many people.
- Operated by professional managers.
- Suitable for small investors.
- The risk of loss is low.
- Investment Trust Unit consists of Trust, the Trust property and Gilts.

BASIC GUIDELINES FOR INVESTMENT.
1.Pelabur need to get complete information about the investment field who wish to undertake.
2. Ensure maximum benefits can be obtained either through interest rates, dividends and capital gain.
3.Mengambilkira risk in investment. If investors are less skilled, can invest in low risk investments and vice versa.
4.Modal available. If an investor invests in small-cap suitable low-risk investments such as the Unit Trust or the bank.
5. Liquidity is an easily convertible assets icing cash. Example: liquid assets - bank deposits. highly liquid assets - property.