Most Malaysian investors believe that stocks are amongst the most attractive and
interesting investments, perhaps the "only" investment tool available.
Over the past several years, many local investors have both profited and lost plenty
of their investments from the ups and downs of the stock market.
There is no doubt that this investment vehicle has managed to attract a large number
of local investors since the "super" bull run in 1993.
But, the world of investments does not end with stocks. There are other investment
alternatives that one should look into for greater diversification of ones personal
With the liberalization of the local financial markets, there will be rapid development
of the financial services industry as a whole. In fact, we have already seen the
evolution of derivative securities such as options and futures and the growing number
of unit trusts being launched in the local market.
Despite the immense growth of the local funds industry, most investors tend to overlook
bonds which have been in the market for rather a long time. There are many good reasons
for investing in bonds despite the common perception that bonds are a very dull and
conservative type of investment.
It is likely that a seasoned second board stock trader will avoid bonds. They would
be probably discouraged by the poor risk/returns tradeoffs when compared to the more
volatile stocks. But, is it always that easy to make fast money? Now is the time
to shop around in search for other prospects.