5 Low-Risk Investments in Malaysia

Low-risk investments are a crucial part of financial planning, especially for those who are looking for stability and security in their investments. While the idea of high returns sounds attractive for everyone, many investors especially newcomers may prefer to park their hard-earned finances with schemes that have safer and more guaranteed returns. Here are 5 low-risk investments that can help you sleep better at night.

Fixed Deposits

Fixed deposits are one of the most popular and low-risk investment options in Malaysia. Fixed deposits offer a guaranteed rate of return and are usually offered by banks and other financial institutions. The interest rate offered on fixed deposits is generally higher than savings accounts and the returns are paid out at regular intervals. In Malaysia, fixed deposits typically have a tenure of one month to three years, although some institutions may offer longer tenures.


Bonds are another low-risk investment option that offer stability and a regular income stream. Not to be confused with stocks that represent partial ownership, bonds are essentially loans that are made to companies or governments in exchange for a fixed rate of interest which are called coupons. While the returns from bonds are generally lower than stocks, but the risk is also lower. In Malaysia, bonds are issued by the government and government-linked companies, and can be purchased through online broker platforms like eToro.

REITs provides benefits of diversification, liquidity and professional management in property development

Real Estate Investment Trusts (REITs)

Yet another sustainable way to grow your future wealth, REITs are low-risk investments that allow investors to invest in the real estate market without actually owning property. REITs are a collection of properties that are managed by a professional company similar to a private equity, and the returns are generated through rental income. REITs are listed on the BURSA stock exchange and can be bought and sold just like any other stock.

Unit Trusts

Unit trusts are a type of investment fund that pools the money of many investors to buy a diversified portfolio of stocks, bonds, or other assets. Unit trusts are managed by professional fund managers, and the returns are generated through the appreciation of the underlying assets. In Malaysia, unit trusts are regulated by the Securities Commission and offer a professionally managed investment option for those who want to invest in the stock market.

Gold is fairly liquid, not correlated with other asset classes, a good store of value and a good inflation hedge


A safe haven investment for many centuries, gold remains a low-risk option in times of economic uncertainty. In Malaysia, gold can be bought in the form of coins, bars, or exchange-traded funds (ETFs). The price of gold tends to move inversely to the stock market, which makes it a good hedge against market volatility so long as you remember to store it in a safe location.

It is important to note that while these investment options are considered low-risk, there is always a degree of risk involved in any investment. Before making any investment decision, it is crucial to consider your individual financial situation, investment goals, and risk tolerance. Hiring a financial advisor to ensure that your investments align with your financial goals and objectives is also in good order.

While your finances are safely tucked away in a fixed deposit account or bonds to a couple of reliable companies, you can also grow your investment knowledge by staying tuned with us at PEGH where we explore various investments in Malaysia, especially the local companies that we believe in growing and making a positive difference in the world we live in today.