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If you're new to investment, is 2021 a good year to start your investment journey?

 

It may seem logical to put your investing goals on hold due in this time of uncertainty. But if your emergency savings, expenses and financing payments are on track, now is still a good time to invest for the long-term. 

 

As you might know, interest rates have dropped, so investing can balance out the effects of inflation or even grow your wealth. Here are some tips to help you invest this year.

Choose your investments carefully

Many industries have been affected by new challenges, which means investments are affected in turn. Before you decide to make an investment, be sure to research on the investment product or fund, as well as the underlying assets and industries.

 

It’s also important to consider how the new normal and economic slowdown may affect the industries and investments you’re interested in, and whether these effects are short-term or would last into the long-term.

 

To offset the uncertainties of these times, you may want try safer, lower-risk investments, such as fixed income ETFs or mutual funds. 

 

Invest for the long-term

 

There’s bound to be ups and downs as the world recovers, so the market can seem volatile in the short-term. However, the pandemic is not permanent. If some of your investments are not doing well for now, stay calm and remember that the economy would start growing again once it has recovered.

 

You can consult with financial advisers on investments to grow your wealth for the long-term, and if you're new to investment, try to invest in funds that are managed by professional fund managers.

 

Diversify

 

Diversification is a must to balance out your risks. In challenging times, this is even more important. You can diversify by investing in different types of equities, but you can also look at other asset classes.

 

As an asset class, bonds are considered a safe investment that would usually continue paying interest even when the market falls. Their risks and potential losses are also not as high as with stock shares. 

 

Property is another asset class you can invest in. If you are looking to buy a home, you can take advantage of the OPR cuts and pay a lower interest on home financing. The Home Ownership Campaign can also make it easier for you to own a new home. Since many homes are undervalued in these trying times, developers may offer better prices or other benefits, so you could get a good deal. Learn more about property investment here

 

If you want a safe-haven investment, you can consider investing in gold. CIMB helps you easily invest in gold through our online e-Gold Investment Account. Find out more about gold investments here.

 

Cash is an asset class which you may already be investing in, from fixed  deposits to savings accounts. Although interest rates for these types of investments may be low now, their low-risk and stable nature provide a good way to get some defensive investments in your portfolio.

 

The point is, there are many investment avenues that you can try out. But always be sure to know your risk portfolio and keep learning investment options to find the best strategy that fits you and your investment goals. 

Consider investing in something new

Changing times call for new strategies. If you’re prepared to take on some risk, you can consider investing in emerging markets. Some nations with emerging market economies have outperformed US growth in the past, and provide an opportunity to tap into new growth. However, since these economies are not yet fully developed, they may face some challenges brought on by the pandemic. If you own stocks or other investment assets in regions with emerging markets, make sure to stay up-to-date on how they are being affected.

 

You may also want consider technology stocks. With people getting used to spending time at home, there has been more demand for technology to keep us all connected. You could invest by buying stocks in tech companies, or through funds that focus on tech-related stocks.

 

Ready to kick-start your 2021 investment journey? Feel free to contact us at CIMB Bank to talk about investments that you’re interested in.

 

 

 

This article is for informational purposes only and CIMB does not make any representation and warranty as to the accuracy, completeness and fairness of any information contained in this article. As this article is general in nature, it is not intended to address the circumstances of any particular individual or entity. You are advised to consult a financial advisor or investment professional before making any decisions based on the information contained in this article. CIMB assumes no liability for any consequences arising from your reliance on the information presented here.