This article is sponsored by TA Investment
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Financial planning can be daunting, but it’s important to find ways to make your money consistently work for you. That way, you can have a regular income stream to cover your expenses and match your lifestyle.
But how does one do this without working multiple jobs and burning out?
Let’s explore some common ways you can get a consistent income stream!
1. Savings Account & Current Account
Savings accounts and current accounts are a product offered by banks to keep your money safe while earning interest rates.
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Saving accounts as well as current accounts can be accessed via ATMs and additional banking services such as interbank transfers. Besides that, the amount within can be withdrawn at any time with no fixed placement period. The two are also guaranteed by Perbadanan Insurans Deposit Malaysia (PIDM) by up to RM250,000.
However, they have considerably low rates, typically around 0.1% to 2.0%, which could lead to a potential loss of value due to inflation.
2. Fixed Deposits
Fixed deposits are a popular financial instrument offered by banks that give you a secure way to grow your savings. Unlike a savings account, fixed deposits are ‘locked’ for a predetermined period, ranging from a few months to several years.
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Fixed deposits have interest rates that are typically higher than savings accounts. The rate is proportional to the duration of the deposit and does not change over said fixed period. Banks may also run promotional rates, which could be higher than basic deposits. On top of that, there are no hidden fees or charges.
Unfortunately, your money is tied-up temporarily and withdrawing it early would forfeit your interest. Besides that, promotional interest rates could change to a lower rate when the deposit is renewed at the end of the fixed period.
3. Fixed Income & Bonds
Fixed income assets, also known as bonds, include a wide range of debt securities that can be used to provide a fixed and predictable income.
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Their plus points are that they have a relatively higher stable income compared to a savings account or a fixed deposit. There are also options for diversification—different risk levels and duration, ranging from government bonds to riskier corporate bonds.
But they are vulnerable to market conditions and there’s a potential risk of default. This option also has a higher barrier to entry. Typically, the minimum investment amount for a bond is RM250,000, which could make it harder for investors to achieve diversification.
4. Income-Focused Equities & Shares
Some equities, also known as stocks or shares, may prioritise providing income through dividends for their investors. They also typically belong to companies with a history of stable cash flows and a commitment to paying-out dividends.
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This category of investment gives you a relatively higher potential income, potential for capital appreciation, and the flexibility to construct a diversified investment portfolio.
On the downside, income isn’t always consistent as it depends on a company’s performance. It’s also subject to market volatility with a risk of capital loss. To select equities that align with your goals and risk tolerance, there needs to be research, analysis, and additional diversification to manage the unforeseen.
5. Unit Trust Funds
In the market, there are also Unit Trust Funds that use a combination of methods and additional strategies to achieve income returns. Some, which are actively managed, can provide a stable and consistent income source, while also having the flexibility to adjust to different market conditions.
How about considering TA Investment’s Total Return Income Fund (TATRIF)?
This multi-asset strategy is the most subscribed new fund in Malaysia* for the first half of 2023 in Assets Under Management (AUM) inflows according to Lipper for Investment Management and offers a monthly fixed payout of 5% per annum, encompassing both income and long-term capital growth.
It features a nimble and flexible global allocation to multiple asset classes, allowing it to capture opportunities in stocks, bonds, commodities, and cash across the globe, and aims to rapidly respond to uncertainties to achieve potentially higher growth.
TATRIF is externally managed by Fullerton Fund Management Company Ltd, a subsidiary of Temasek Holdings and Income Insurance Limited (a leading Singapore insurer).
Fullerton’s diverse and experienced team of portfolio managers and analysts are experts in bottom-up securities selection, as well as top-down macro-economic analysis empowered by Augmented Intelligence (AI), thus combining the best of both worlds.
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And best of all, TATRIF is liquid and open-ended, so you can withdraw your investment at any time, with no lock-in period, granting you the flexibility and consistency to help you to better plan out your finances.
To find out more about the Fund and its different investment plans, visit www.tainvest.com.my/TATRIF.
*Source: TA Investment Management Berhad, as of September 2023. Data Source: Lipper for Investment Management, as of 30 June 2023, for Net Flows of Lipper Malaysia funds launched in 2023.
Payouts are not guaranteed. Please refer to the Prospectus for important information about the Fund’s income distribution policies. This is not a capital protected / guaranteed fund and returns are not guaranteed.
Past performance is not an indicator of future performance. This material has not been reviewed by the Securities Commission Malaysia.
Fullerton Fund Management Company Ltd. (“Fullerton”) neither endorses nor makes any representations as to the contents herein. Any reproduction or use of Fullerton’s name and/or logo without its prior permission is prohibited.