If you are serious about your financial planning, I am sure one of the questions which you wish to know the answer is how to maximise the return from your investment.
Before you are able to find the answer, you will need to refer to the table below.
From the table above, you can see that:
- If you place your initial investment of RM10,000 in a fixed deposit of one-month tenure (3.0%), you will double your investment after 25 years of investment. For a fixed deposit with tenure of 12-months (3.7%), you will have your RM20,000 after 20 years. There’s a reduction of 5 years.
- If you place the same RM10,000 in your EPF or ASB/ASN (average 5-8%), you will double your investment after 15 years.
- For the same RM10,000, if you invest in the right unit trust or mutual funds (average 10-20%), or the stock market, it is possible to double the investment within 10 years time.
To simplify, if Mr A invested RM10,000 in a 12-month tenure fixed deposit, he will have RM20,000 after 25 years of investment.
While for Mr B who invested the same RM10,000 in a high-yield mutual fund*, it is possible that he will earn RM800,000 after 25 years. That is a difference of RM780,000, and it’s a lot of money.
If you wish to maximise your return from investment for long term financial planning, where you place your investment is one of the most important factors.
So, make sure you make the right decision.
*P/S: Please also take note that high-yield investment might involve high risk.
