New To Investing?
SHARE THIS PAGE:
Are you looking at ways to grow your wealth, but find yourself overwhelmed because the whole process seems daunting or you just don’t know how to get started?

It’s a common conundrum most new investors face and we can empathise with these anxieties.

But part of the problem mainly lies in a number of myths about investing which might be holding you back from making that first step.

Here are 3 myths about investing and the real truth about putting your money to work.
Myth #1:

Investing is Complicated
The biggest challenge most new investors will face is overcoming their initial trepidation about investing and that it’s complicated. But to borrow a quote from legendary investor Warren Buffett, investing isn’t rocket science and someone with a higher IQ isn’t going to do better than the rest.

Making a plan is the first and most important step in anyone’s investing journey. If you fail to plan, you plan to fail. This is certainly true in the realm of investing.

Firstly, clearly outline your investment goals and determine why you’ve decided to invest in the first place. Are you a millennial investor building up your savings to purchase your first home? Or are you an investor approaching retirement looking for replacement income?

This is then closely correlated to your risk capacity, which is the level of risk that you are able to accept for your investments. Can you stomach large substantial swings in your portfolio? Or do you prefer to play it safe and employ a more conservative approach?

Mapping out your investment goals and risk-level, will then help towards determining your asset allocation and building a portfolio that suits your needs.
Myth #2:

Markets are Too Volatile
The marketplace can seem scary to new investors. We’ve all read the headlines about benchmark indexes plunging and intraday volatility surging because of some macro event. But markets move in a cycle and ultimately normalise over time. History has also shown that markets trend higher with each bull cycle ending higher than the last.

So how can investors manage volatility in their portfolio? The answer lies in diversification – a tried and true risk management strategy designed to smoothen out returns in a portfolio and minimise the risk of losses.

A diversified portfolio with low correlations would make for a less bumpy investment journey and tend to reduce jitters when faced with adverse market conditions. In turn, this would induce investors to stay invested and reap the benefits when markets eventually bounce back.
Myth #3:

You Need a Lot of Money to Invest
Another common myth holding back investors is that it is assumed you need large sums of money to invest. That’s no longer true with most unit trust funds and Private Retirement Schemes (PRS) having a minimum investment amount as low as RM100 today.

However, you might ask if such small investment sums would significantly move the needle or bring you any closer to your investment goal. Is RM100 really going to make a difference? The answer is yes again, if you are disciplined and invest consistently by leveraging the power of compounding.

To illustrate, assume an investor makes a monthly investment of RM100 for the next 30 years. This would bring the total investment to RM36,000. Assuming a target return rate of 12%, the value of the investment would grow and compound itself bringing the projected value to over RM353,000!

Described as the ‘eighth wonder of the world’, the power of compounding should not be underestimated in how it affects your portfolio returns over time. This also underscores the importance of staying invested and the risk of cashing out too early in a market downturn.

Start small and start early to reap the benefits of compounding.
Getting Started
Investing isn’t as complicated or intimidating as it is made out to be. With the right financial roadmap backed by a solid asset allocation plan, you are one step closer towards realising your wealth goals and aspirations.
Disclaimer:

This content has been prepared by Affin Hwang Asset Management Berhad (hereinafter referred to as “Affin Hwang AM”) specific for its use, a specific target audience, and for discussion purposes only. All information contained within this content belongs to Affin Hwang AM and may not be copied, distributed or otherwise disseminated in whole or in part without written consent of Affin Hwang AM.

The information contained in this content may include, but is not limited to opinions, analysis, forecasts, projections and expectations (collectively referred to as “Opinions”). Such information has been obtained from various sources including those in the public domain, are merely expressions of belief. Although this content has been prepared on the basis of information and/or Opinions that are believed to be correct at the time the contents was prepared, Affin Hwang AM makes no expressed or implied warranty as to the accuracy and completeness of any such information and/or Opinions.

Affin Hwang AM and its affiliates may act as a principal and agent in any transaction contemplated by this content, or any other transaction connected with any such transaction, and may as a result earn brokerage, commission or other income. Nothing in this contents is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities.

Neither Affin Hwang AM nor any of its directors, employees or representatives are to have any liability (including liability to any person by reason of negligence or negligent misstatement) from any statement, opinion, information or matter (expressed or implied) arising out of, contained in or derived from or any omission from this presentation, except liability under statute that cannot be excluded.
Hello, I'm Nadia. How may I help you?
Talk to Nadia
Close
Not sure what to ask? Try these.
  1. I forgot my i-Access password.
  2. How to perform redemption?
  3. What is the minimum amount to open an investment account?
  4. Checklist for deceased redemption.
  5. What is the best fund for me?
<  Slide to cancel
I'm listening ...
Click to stop recording

Copyright © 2020 Affin Hwang Asset Management Bhd
TENG CHEE WAI

Managing Director
Teng Chee Wai is the founder of Affin Hwang Asset Management Berhad (Affin Hwang AM). Over the past decade, he has built the Company to be the fastest growing and only independent investment management house in Malaysia’s top three, with an excess of RM47 billion in assets under management as at 31 December 2018.​

​In his capacity as Managing Director / Executive Director, Teng manages the overall business and strategic direction as well as the management of the investment team. His hands-on approach sees him actively involved in investments, product development and marketing. Teng’s critical leadership and regular participation in reviewing and assessing strategies and performance has been pivotal in allowing the Company to successfully navigate the economically turbulent decade.

Teng’s investment management experience spans more than 20 years, and his key area of expertise is in managing absolute return mandates for insurance assets and investment-linked funds in both Singapore and Malaysia. Prior to his current appointments, he was the Assistant General Manager (Investment) of Overseas Assurance Corporation (OAC) and was responsible for the investment function of the Group Overseas Assurance Corporation Ltd.​

​Teng began his career in the financial industry as an Investment Manager with NTUC Income, Singapore. He is a Bachelor of Science graduate from the National University of Singapore and has a Post-Graduate Diploma in Actuarial Studies from City University in London.
Ooops!
Generic Popup