Smart Investing : From Safe Bites to Risky Delights

Imagine a life without worries. Where building wealth is not so much of a hard work but a breeze. What if your path to wealth creation could be one that gives you an adrenaline rush and rewarding too?

Building wealth takes different paths and unfolds in various ways – be it the art of saving diligently, making strategic investments, or even building businesses. Stashing your savings in low-risk investments may offer a secure haven, but won’t make you wealthy on its own. Smart investors spice things up by spreading their money across different investment products, creating calculated risks and strategic choices. The path to real financial success involves more than just saving. It is about the exciting balance between risk and smart decisions.

Smart investors are like expert chefs, creating a portfolio that suits their risk appetite. They blend things up by including high-risk options, like the unpredictable world of cryptocurrency along with medium-risk choices such as Real Estate Investment Trust (REIT). To add a layer of security, they also include low-risk investments for instance unit trust, like ASNB. It’s like crafting a menu of financial options. But, it is really up to everyone’s appetite! One should adjust their investment in order to suit their ability and capability.

In the financial world, reliable investments like properties, unit trusts, REITs, pension funds and cooperative shares are generally known for stability. Don’t forget the unsung hero, the Employees Provident Fund (EPF) quietly ensures dividends as a safety net. Sure, it’s comfy, but it might not give you that grand, jackpot return. 

In the ever-evolving landscape of financial instruments, a myriad of new digital investment products has emerged. Some are so intricate that investors find them challenging to understand. These are legit investment platforms like the innovative Digital Asset Exchanges (e.g. LUNO), Digital Investment Management Platforms (e.g. Wahed Invest), Equity Crowdfunding (e.g. Ata Plus) and Peer-to-Peer or P2P Crowdfunding (e.g. Microleap). 

While there are these legitimate options, scams also are lurking around. Take, for instance, the Ponzi scheme, where returns for one set of investors come from the funds of new ones, which ultimately leads to financial chaos. Then there’s the Geneva scheme, a deceptive setup which in actual fact is an illegal deposit-taking that led to the loss of millions of dollars for investors. In today’s world, scams are all around us, getting more innovative and offering ridiculous returns to investors, as an example – invest RM500 and gain RM10,000 in 3 hours! The crazy thing is, there are investors who fall for it!

In an article published by The EDGE in October 2022, the Securities Commission Malaysia (SC) mentioned that scams are on the rise – in the first nine months of 2022, the SC received over 1,800 complaints about investment scams and shady activities. Can you believe there were 72,000 reported scams causing a whopping RM5.2 billion in damages? And out of these, about 12,000 were investment fraud cases. It’s a tough world out there, and scams are a big part of the challenge we’re up against in building our wealth. As Warren Buffett said, “Don’t invest in something you don’t understand.”

The key here is finding what fits your investment appetite. It’s not a one-size-fits-all situation. Your investment journey should align with your goals, preferences and risk tolerance. It’s about making choices that resonate with you.

Generally, people really like the idea of making tons of money fast. People are susceptible to that which unfortunately is exactly what scams offer. The thing is, there are investments that can give handsome gains in this nature but the catch is – these investments are usually highly risky. Among the investments that could offer these lucrative returns are products like ECF (Equity Crowdfunding). 

In the next segment, we’re diving deep into the waters of ECF. What is it? How does it work? Most importantly, how can you, as an investor, make the most of it? Get ready for a wealth of information as we dissect the intricacies of ECF in our next installment. The journey continues, and wealth awaits! 

Disclaimer: This is not financial advice. Please do your own due diligence before investing in any investment products.