Site icon MyFinTalk

My Classification of Some Investment Instruments

If you are lazy to think about investing,

Robo-advisors might be the perfect instrument for you.

Otherwise, you may enlist the help of a licensed financial planner like me (click here to learn more).


This instrument, peer-to-peer (P2P) lending could give investors high return. But with high return, its risk is also high. There is a possibility of loss of capital. But by not putting all the eggs in one basket, the risk of total loss is not that high.


If you would like to have higher return than fixed deposits, these are some alternatives. However, they generally lack the protection of Perbadanan Insurans Deposit Malaysia (PIDM).

1. ASNB fixed price funds – These are funds offered by Amanah Saham Nasional Berhad (ASNB). Their unit price stays static at RM 1.00, thus there will be no fluctuation. You would earn dividends annually. As they are offered by a government-linked company, there is very low risk of total loss.

2. Simpan SSPN Prime – This is an instrument provided by National Higher Education Fund Corporation (Perbadanan Tabung Pendidikan Tinggi Nasional). The deposit is guaranteed by the government. It is also useful to reduce your income tax liability (tax relief valid till 2024).

3. Versa Cash – This is a modified money market fund. It can be employed to hold your emergency fund to earn higher interest rate. As it is a money market fund, it does not have the protection of PIDM.

4. Digital banks

Contrary to all the above-mentioned, our deposits in digital banks are protected by PIDM. I think this new breed of banks represent a good parking facility for emergency fund. Their interest rates are normally higher than the fixed deposits but without the lock-in period. Furthermore, the money can also be withdrawn easily.


These instruments are good tools to reduce your tax liability. You should consider to invest in these instruments only if your income tax liability is high.

1. Private Retirement Scheme (PRS) – The funds in this scheme are actually mutual funds. As it is supposed to be savings for retirement, there are some restrictions to this scheme. If the tax relief benefit is removed (currently extended till 2025), I think there is no point putting money into PRS anymore.

2. Simpan SSPN Prime – This instrument is guaranteed by the Government. Its dividend rate is not that high, but it can save you some taxes, so the rate needs to be adjusted based on your tax rate. This tax relief is valid till 2024. This account can also function as safe haven. Learn more above it by clicking here.

Exit mobile version