An investment scheme that collect fund from small investors invested in a list of financial instruments managed by professional fund managers with common objective.

Managed through fund management companies and sold via banks or brokers. (financial institutions)

Advantages: Diversification of investment portfolio, professionally managed, reasonable returns with manageable risk.

Disadvantages: High fees (e.g. management and sales charges), performance tied to stock market.

Example of instrument: Money Market Funds, Balanced Funds, REIT Funds, Islamic Funds

Investment in real estate for income (rental) or capital gains.

Property market

Advantages: High rental income, price appreciation over time, collateral value for financing.

Disadvantages: High upfront costs (down payment, stamp duty, legal fees), maintenance and renovation expenses.

Example of instrument: Residential properties (condominiums, double-storey houses), commercial properties (shop lots, office spaces)

Financial instruments that represent ownership (equity) or debt (bonds)

Traded in Capital Market or Islamic Capital Market (e.g. Bursa Malaysia)

Advantages: high potential returns, high liquidity (easy to buy and sell), variety of options (common stocks, warrants)

Disadvantages: high risk (especially with stocks), depends on market conditions and company performance.

Example of instrument: shariah-compliant stocks, government stocks, corporate bonds ( FBM KL Composite Index, Hang Seng Index)

Investments that can be easily converted to cash within a short period (3-12 months).

Money market and banks

Advantages: high liquidity, low risk, good for temporary placement of funds.

Disadvantages: limited returns compared to long-term investments, not suitable for aggressive growth.

Example of instrument: saving instruments (saving account or current account), depositary instruments (investment account), money market instruments (Bon Simpanan Merdeka), selected fixed-income securities.