8 Common Investment Mistakes Malaysians Make And How You Can Avoid Them
Do you sign blank forms to save time?
Published for FEDERATION OF INVESTMENT MANAGEMENT MALAYSIA, 04 Jun 2018, 05:47 PM
There have been many cases of Malaysians being scammed by unscrupulous individuals
If you are considering to invest your money, The Federation of Investment Managers Malaysia (FIMM) wants to remind you that it's important to be wary of the scams, and to educate yourself on your potential investment.
1. Passing cash directly to a consultant
You should never pass cash to your consultant for investment. If anyone asks you to "invest" by passing them cash, this is a huge red flag!
2. Signing empty forms to save time
It can be tempting to just sign empty forms, especially when there are just so many to fill out, but you should never pre-sign incomplete forms! Always fill your details in yourself.
3. Not dealing with an authorised consultant
Your Unit Trust (UT) and Private Retirement Scheme (PRS) consultant must be FIMM authorised. Only those who have passed the exam can have the license to sell UT or PRS or both.
4. Trusting someone because you know them personally
This can be a sticky situation but there have been just too many cases of easily trusting other people, then being taken advantage of :(
5. Not understanding how the investment plan works
You have to know what you're getting yourself into. Read everything and ask questions. If you're still unsure, get a second opinion.
6. Following advice without fully understanding how things work
If you don't understand something, don't be embarrassed to ask. This is your money and your decision, so it's important to do your research and understand what you're getting into.
7. Rushing into things because it's "time sensitive"
Investment is a big decision. Don't let anyone pressure you to sign on quickly because it's "urgent" or "hot". There will always be other investment options available.
8. Not bothering with timely reports and statements
Reports and statements may seem like a bore, but it's important to read them thoroughly. Not sure what you're reading? Get a consultant to explain to you!
If you're new to investing, it's easy to make these common mistakes
While scams and con artists will probably never disappear completely, arming yourself with knowledge is the best thing you can do.
Remember these key points:
1. Don’t give cash to the consultants, there should be no cash payment.
2. Don't sign empty forms to save time.
3. Always choose authorised consultants. Remember that your UT & PRS consultant must be FIMM authorised.
The more you research and educate yourself, the safer you and your money will be. More importantly, you'll also be able to make better decisions about your financial future.
Find out if your UT or PRS Consultant is authorised at FIMM.
Looking to invest or simply gain more knowledge? Check out FIMM for more information and 'Like' their Facebook page for updates!