When the economy has hit the bottom & start to recover,
When the interest rate has reach the bottom & still at the bottom,
The risky assets will now become not so risky & appear to be rewarding,
The FD is not safe anymore if the assets price rebuke the trend & turn upward. You will only getting a negative real return on your FD.
You have the following choices:-
- Buy shares, if you know how to pick a good under value stock.
- Buy 1 Malaysia Fund, if you know nothing about shares, and dare not to take risk. This is safe because it's fixed price fund at RM1.00, you will never lose & stand a better chance to earn returns higher than FD rate.
- Do nothing, remained 100% in FD & get negative real returns on your hard earned money. (Picture : Queensbay, Penang )
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