Definition:
Investment:putting money into asset with the expectation of capital appreciation, dividends or interest earnings
Vehicle:
a thing used to express, embody, or fulfill something; instrument.
a thing used to express, embody, or fulfill something; instrument.
(I) Stocks:
Parts of ownership of public listed
companies; also known as shares. This is the favorite of high net worth
individuals.
Advantages:
-can be started with
small capital
-transparency and
accessibility of relevant information
-chance to participate
in accomplished businesses/ economies of scale
-almost unbeatable
long term gains
Disadvantages:
-requires a certain
level of expertise
-subject to market
volatility
-poorly managed
companies may go bust
Availability:
Availability:
Buy from stock exchange
through investment banks or stock broking firms.
(II) Mutual funds:
Individuals with MUTUAL investment
objectives pool together their FUNDS to be managed by managers from
banks or insurance companies.
Advantages:
-can be started with small capital
Advantages:
-can be started with small capital
-managed by
experienced investors
-diversifying risk by
owning a variety of assets
-being able to hold
assets available to only institutional investors, eg. bonds
Disadvantages:
-incurs higher costs
for buying and selling, relative to stocks
-little space for
customization, more susceptible to market volatility
-diversifying gains
(not just the risks!)
Availability:
Banks, insurance companies.
(III) Real estate:
Land and/ or buildings built on it.
Advantages:
-consistent capital
gains
-properties have
strong demand and don’t get less popular over time
Disadvantages:
-high barriers of entry
-high barriers of entry
-requires active
management
-high financial
commitment
Availability:
Availability:
Real estate agency, or sales
gallery of properties developers.
Alternative investments:
-Equity derivatives eg. options
-Commodities eg. Crude Palm Oil
-Commodity derivatives eg. futures
-Precious metals eg. gold, silver
-Foreign exchange eg. USD/MYR, MYR/EUR
Research done by :
Dhivyamaaran Anparasan @ Maaran
Dhivyamaaran Anparasan @ Maaran
Chong Zhi Ying @
Jeanne
Pham Phan Hoang Kim @ Kim
Tan Shen Tze
Terence Then
Pham Phan Hoang Kim @ Kim
Tan Shen Tze
Terence Then
