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Investing Made Simple: How to Grow Your Wealth

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21 Feb 2025

5 Min Read

Public Mutual (Partner Contributor)
IN THIS ARTICLE

Learn how to invest with Public Mutual to explore growth opportunities, build a diversified portfolio, and plan for long-term financial success.

Imagine planting a tiny seed today and watching it grow into a strong, towering tree over time. That’s what investing is like—it helps your money grow and work for you. While it might sound complicated or like something only working adults do, the truth is that the earlier you start, the greater the long-term benefits.

 

Many students focus on saving, which is great, but saving alone won’t help you build real wealth. Investing allows you to make the most of time and compound growth, helping you achieve financial goals like further education, a dream home, or early retirement. The best part? You don’t need a lot of money to begin.

 

This guide breaks down investing into simple, easy-to-understand concepts. Whether you’re looking to start small or want to develop healthy financial habits for the future, these principles will help you take your first steps confidently towards financial growth.

What Is Investing?

Investing simply means putting money into something with the expectation that it will grow over time. Unlike saving, where money remains stagnant in a bank account, investing puts it to work, potentially increasing its value through returns or profits.

 

There are different ways to invest, such as buying shares in a company (stocks), lending money to businesses or the government (bonds), contributing to professionally managed funds (unit trusts), or investing in property (real estate). While investment values can rise and fall, the goal is to grow your wealth over the long term.

Why Investing Early Is Important

It’s easy to think of investing as something to worry about later when you have more money to spare. However, starting early comes with significant advantages:

  • The Power of Compounding: Compounding means earning interest not just on your original money but also on the returns it generates. The earlier you start, the more time your money has to grow.
  • Time to Recover from Market Movements: Markets rise and fall, but as a young investor, you have more time to recover from downturns than someone who starts later in life.
  • Building Good Financial Habits: Investing isn’t just about making money—it helps develop discipline, patience, and goal-setting skills that will benefit you throughout life.

The Four Key Principles of Investing

To build a strong foundation for your investments, consider these four key principles practised by Public Mutual:

  • Long-Term Investing

Investing isn’t a way to get rich quickly—it’s about allowing your money to grow over time. The longer you stay invested, the more you benefit from the power of compounding. Rather than trying to predict when prices will rise or fall (which is difficult to do), focus on staying invested for the long term.

  • Understanding Market Ups and Downs

Markets constantly rise and fall, but that doesn’t mean you should panic. Short-term dips don’t necessarily lead to long-term losses. In fact, when prices are low, it may be a good opportunity to invest more and get better value for your money. One effective way to manage market fluctuations is diversification—spreading your money across different types of investments. This helps reduce risk and increases your chances of stable returns.

  • Investing Regularly (Ringgit Cost Averaging)

The best investors don’t wait for the ‘perfect time’ to invest. Instead, they invest small amounts consistently, regardless of market conditions. This strategy, known as Ringgit Cost Averaging (RCA), involves investing a fixed amount at regular intervals. With Public Mutual’s Direct Debit Authorisation (DDA), you can automate this process, making it easier to stay on track without worrying about market fluctuations.

  • Building a Diversified Investment Portfolio

A portfolio is simply the collection of all your investments. A well-diversified portfolio spreads your money across different types of investments, reducing risk and improving potential returns. For example, it could include:

  1. Stocks (Equities): Buying shares in a company, which may increase in value and pay dividends— profits shared with investors.
  2. Bonds: Lending money to businesses or the government in exchange for regular interest payments.
  3. Unit Trust Funds: Investing in a professionally managed fund that pools money from multiple investors and allocates it across different types of assets.
  4. Real Estate Investment Trusts (REITs): Investing in property through a fund that owns and manages real estate without you having to buy or maintain it yourself.

By diversifying, you spread your risk. If one investment dips, others may still perform well, helping to balance your portfolio.

How to Start Investing?

Our financial needs evolve as we go through different life stages, so starting early and planning ahead can help ensure a smooth financial journey up to retirement. The best way to begin is by taking small steps now and letting time do the heavy lifting through the power of compounding.

 

Here’s how you can start your investment journey—even with just RM10:

  • Identify Your Goals: Write down your medium- to long-term financial goals. Whether it’s saving for further education, your first car, or a future home, having clear goals will keep you focused.
  • Create a Budget: Review your monthly income and expenses and set aside a portion of your income for investing.
  • Build an Emergency Fund: Before investing more aggressively, save three to six months’ worth of income for unexpected expenses.
  • Manage Debt Wisely: Avoid high-interest debt, such as credit card debt. Paying debt off quickly frees up more money for investing.
  • Start Small: You don’t need a large sum to begin. For example, you can start with just RM10 in a unit trust fund.
  • Invest Regularly: Use RCA by investing small amounts consistently. For instance, setting aside RM50 monthly helps build your portfolio over time, even when markets fluctuate.

Conclusion

Investing doesn’t have to be complicated. By starting early, you maximise the benefits of compounding and build smart financial habits that will serve you for life. Whether you have RM10 or RM100, you can begin your investment journey today.

 

So, why wait? The best time to invest is now!
For more tips on investing confidently, explore Public Mutual's financial literacy resources on their Instagram, TikTok, and website.
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