How do I start

There are many mode of investment to consider about. It’s all depends on the personal attitude towards risk or the individual risk appetite. Some would prefer high risk-high gain concept, we classified them as aggressive investors. Most of their portfolio concentrates on individual equities or stocks.

The common portfolio of an aggressive investors :-



There are also a group of people, where this group still have the preference on investing, but rather concentrate on less riskier approach, such as bonds and money market instruments. Not saying they are free from any form of risk, but the risk level is reduced as compare to equities. We called them moderate investors. A quick glance on their portfolio shows a bigger piece of pie on Bonds and Money markets.

The common portfolio of a moderate investors :-


The third category of people is, who not willing to risk any of their money in any form of investment. Most of their portfolio shows (if there’s any), their hard earned money were parked under Bond , Money Market , FD or savings account.

The common portfolio of a low-risk investors :-


A gentle reminder, no matter how high is your risk appetite level is, it’s always a good decision by not to put all your eggs in one basket!! Diversification must be put in priority on any type of investments.

Investment Risk

Good day to all, by now you should understand what is compounding and how investment helps you to achieve your financial goals.

Now let’s see, how many types of investment instruments or vehicle are out there for you to consider from. From conservative to aggressive, you can choose the type of investment that suits your risk tolerance. Remember, there is no investment tool that is without a risk associate to it. Even a regular savings in any bank is prone to risk. The total amount insured for 1 account in any 1 bank is only RM60K.

Below is the illustration of various kind of investment, each with its own level of risk and return.

Source :- Easy Guide to Risk , Prudential Unit Trusts Berhad.

In conclusion , the level of risk the person is willing to take is depends on the individuals investment goals as well as personal attitude to risk. Everyone know that the higher the risk , the higher the potential rewards. But , are you ready to take such risk , considering where you are now ?