Here are some types of investments that I have: mutual funds/unit trust, gold and crypto.
This article is all about investments I don’t have yet, but always been curious to try. I may or may not proceed with one or any of them in the future. It’s just to show you what I’ve done about them so far, and why I didn’t proceed with them yet.
#1 – ETFs (Exchange-Traded Funds)
I’ve heard really good things about ETFs. How they tend to be low in fees, how they’re fairly low-risk, how they’re the passive investment of choice for many in the financial circles.
The ONLY reason why I haven’t invested in ETFs yet is because I’m still waiting for a fintech roboadvisory company to offer Syariah-compliant ETFs. Too lazy to go through Bursa.
EDIT: This article was originally written in 2018. Since then, many roboadvisors and platforms to buy ETFs are available for Malaysians. See how to get them at:
- Which is the Best Robo Advisor in Malaysia? Ultimate Comparison Guide
- MIDF Invest Review: Buy US Stocks and ETFs from Malaysia Directly, Securely and Cheaply
#2 – Properties
Specifically, I want to make money from properties via two methods: REITs and rental units
For REITs, I’m sort of interested, but just not that passionate about them. If you are interested in REITs, see my 5 Things I Learned About REITs in Malaysia (From a Bursa Malaysia-Sponsored Workshop) article.
Rental units, on the other hand, is something I have more passion for. I’ve always had this idea of buying a multi-room property, live in one of those units, then rent out the rest.
It’ll solve both (1) my accommodation and (2) passive income strategy. Usually, when you buy property, you have to pick one or the other – for own stay or for investment. I thought this kind of solution, in theory at least, can be a ‘best-of-both-worlds’-type of solution.
I got the idea from a chap called Alan Corey in his book, A Million Bucks By 30: How to Overcome A Crap Job, Stingy Parents, and A Useless Degree to Become A Millionaire Before (or After) Turning Thirty. He bought a big house, lived in the smallest room, and rented out the rest.
There are lots of trade-offs for this strategy, though. Summarised in two words, tenancy woes. Living with other people can be frustrating, to say the least. How much do I want to sacrifice my quality of life, privacy and landlady-related headaches in exchange for the money?
A possible solution is complete boundaries between myself and my tenants. Different entrances, living areas, bathrooms, kitchens, the works. But that sounds expensive – that’s already considered an apartment unit, and hell I don’t have money to buy a whole apartment unit!
So until I see a property in my budget range that can work for this kind of situation, the search continues.
#3 – Equity Crowdfunding (ECF)
Have you watched Shark Tank? That’s kind of how equity crowdfunding works, except the investors are a bunch more people instead of individual ‘sharks’.
At time of writing, there are seven licensed equity crowdfunding platforms in Malaysia (list in Securities Commission website). I’ve been tempted to put my money in various companies many, many times. Especially startups which I thought was brilliant, like Me.Reka Makerspace.
What’s stopping me? Simple. I don’t want to over-allocate high-risk investments in my portfolio. I
hold hodl cryptocurrencies. The wild volatility already gives me anxiety. It takes all my willpower to not cave in and sell everything, especially during bear markets.
Anyhow. I’m planning to keep my crypto holdings for at least a few more years. This could be my best investment decision, or the worst, let’s see. If it turns out well, I’ll re-diversify and consider investing in startups.
Last thoughts about investments I want to try
There are some investments I’m absolutely not interested in, like art (collectibles in general), foreign exchange (USD/EUR/etc money), and individual Malaysian stocks.
I’m not saying they’re bad investments, I’m saying I don’t enjoy them and therefore won’t be motivated to research them, which is not a good trait to have as an investor for those types of investments.
How about you? What investments:
- Do you have?
- Do you want to try?
- You are NOT interested in?
Share with us in the comments section!