Alright, let us say you are in your mid 20s’ and into the first year of your first job, having saved a substantial amount, you are thinking of balancing your savings and investments account. After careful calculations you come up with RM5000 to be put into investments that you would expect a return from in 5-10 years.

With this budget, classic cars and property is definitely out of reach but there is a whole lot of other places to put or bet your money in. All you need is some in-depth research. Here are some places you might want to consider putting your money in.

 

Mutual Fund 

A mutual fund is basically a professionally managed fund collected from investors for the purpose of purchasing securities and similar assets from both domestic and or international markets, thus creating a diversified investment portfolio.

There are many types of mutual funds at different levels of risk that are offered by different institutions. Make your choice to only invest in the one you are comfortable with even if it means a lower rate of expected return.

 

Exchange-Traded Fund (ETF)

An ETF is constructed somewhat like an index fund, with a portfolio made to match a market index by tracking it. However, trading ETF is similar to stock trading on a stock exchange whereby you can buy and sell throughout the day. It is highly liquid.

It is a popular choice for individual investors who prefer short-term price betting, no minimum deposit requirements, and low brokerage fees.

However, if you are looking at ETFs for your first investment as a beginner, take time to do proper research on the available options, and choose wisely on a good broker since it is your first, or else it is recommended that you look elsewhere.

 

Fixed Certificate of Deposit(CD) or Fixed Deposits(FD)

Now, for the less complicated options. A CD and FD are both almost the same thing, and both work like a timed savings account. It is similar to putting your money in a savings account but it just has a fixed maturity date and fixed interest rate tied to it. Therefore, access to the funds is restricted but premature withdrawals are mostly allowed nowadays upon payment of a penalty fee.

There are many types of CDs and FDs available, even some with varying periodic interest rates over some time into the investment. It all depends on the issuing institution and the nature of the products they offer.

 

A Chanel bag (preferably)

If you are looking to enjoy yourself through an investment and do not want to have anything to do with the bank, this would be your type of investment. Taken into consideration your current budget, you may not have enough to invest in a vintage car, or a contemporary art-piece, but for the closest rate of return, a classic Chanel bag would be your best option.

The common, classic Chanel medium flap back has increased more than 70% in value in just the last 6 years. You can only imagine how much more have the older vintage pieces appreciated in value over the years. Of course, you can opt for any other item from Chanel or any other major high fashion houses, but considering the budget of $5000 with the highest expected yield, there is a reason we particularly mentioned the Chanel bag.

 

A Rolex

Do take note that the competition is relatively less when it comes to rates of return from resale for timepieces as compared to high fashion brands’ goods. For timepieces though, a piece of basic advice, you would want to invest in a mechanical watch rather than a digital one.

However, among luxury watchmakers, you can trust Rolex for a good yield as the brand has been consistent with its increase in value over the years. Then, of course if you could, do research on which are the ones that are the prized collectibles. Invest in one that is out of the collectibles’ list, and chances are you will not be able to make as much out of your initial investment but of course keep in mind to spend within your budget.

The investment options covered here represent only a fraction of what is available right now in the market. Investing in a start-up, or starting a business on your own can also be considered as investments. Choose wisely and be patient as it is normal for any investment to take some time before producing a favorable