There are 7 useful platforms for income improvement during COVID-19 . Let’s take a step back, going back 10 years ago. When we think of 2020, we have a Wawasan 2020 dream, envision a great future. But, who can predict that 2020 is a washout year with Covid-19? Many people have lost their job or suffer from salary reduction. Thus, now, it is the right time for us to take a step back and think about our financial plan, retirement goals and ways to improve our wealth as well.
1. Stock Investment
For the past few months, Bursa has reported that there is a surge in daily trading due to higher retail investors participation. Many investors have started their trading journey and gain profit, taking advantage of the market recovery after the March massive selling. If you are keen on having equity in your investment portfolio, you can reach out to bank remisier or go to Rakuten Trade to open a trading account. Many people move their investment to equity due to low fixed deposit rate as an alternative for income improvement during Covid-19. It is advisable that before you make any investment, go through the company annual report, perform your due diligence and make your order.
Many people think that they don’t have enough time to monitor the stock market and want a more balanced portfolio. In this case, the unit trust serves a better investment vehicle, where you can buy a diversified portfolio of growth, balanced of Islamic funds. An excellent platform to start with is Fundsupermart, where you can have the option to buy most of the unit trust funds from banks and can get a list of recommended funds for reference to invest. It is advisable that before you make any investment, go through the fund prospectus and make your payment!
3. ASNB Fund
ASNB, a PNB unit trust company, has also offered both fixed price and variable price funds. Every year they announce income distribution per unit for each fund. If you are keen to invest, you must first check your eligibility and your preferred asset class. ASNB offers financial literacy program such as ASNB e-seminar and seminar perlaburan 360-hari, do check it out before you invest.
4. Peer-to-peer Funding Platform
With just RM50, you can now opt for an alternative investment, microLEAP, which is regulated by the Securities Commission Malaysia (SC). SME is the drivers of our economy when Covid-19 arrives; it impacts this group the most. Thus, with your investment, it makes impactful influence to their business. With microLEAP platform, you invest as borrowers in the microfinance sector which involves B40 and lower M40 income groups. You now have a say to invest in the industry, the credit risk rating, interest rate you receive for each funding. Then wait for monthly loan repayment, it comes in 2 forms: principal and interest.
5. Bond Investment
For risk-averse investors, a bond is an attractive option as it provides fixed returns and potentially be a higher-yielding alternative to savings of fixed deposits. 1 good example is Malaysia Government Securities as these bonds are issued by the Malaysia government and considered as free from credit risk. If you are willing to take a bit more risk, you can also consider corporate bond. A good platform will be Fundsupermart.
6. Exchange-Traded Fund (ETF)
ETF is an open-ended investment fund listed on the stock exchange. Investors often like ETF due to its diversified exposure, cost-effectiveness and simplicity. If you want to invest in US stock market but have not enough capital for this, you can consider Stashaway. Stashaway portfolio invests in multiple ETFs from different asset classes from different countries, such as Vanguard FTSE Europe ETF, ishare Core S&P 500 ETF. The team organizes webinars weekly to educate the public on ETF and the importance of financial planning.
7. Gold Investment
I still remember my parents used to say buy gold when the economy is bad. Gold is often seen as a defensive asset during bad times. Besides buying gold physically in jewellery shops, you can consider HelloGold platform where you can now buy, sell and send the gold in any amount from RM1. HelloGold is certified Shariah- Compliant as well, thus our fellow Muslim friends can invest with peace of mind.
In a nutshell, these are 7 useful platforms for income improvement during Covid-19. Before we make any investment, it is advisable to spend at least an hour to do our research online before making any decision. Your investment determines your future and retirement goals, thus choose wisely, balance the risk and reward factors. If you are thinking to build a side business while keeping your day job for income improvement during Covid-19, check this article: How to Build a Side Business while keeping your day job.