- ASB (Amanah Saham Bumiputera)
- A unit trust scheme managed by Permodalan Nasional Berhad (PNB) specifically for Bumiputera Malaysians. It offers dividend distributions and is considered a long-term investment for wealth accumulation.
- Compound Interest
- Interest calculated on both the initial principal and the accumulated interest from previous periods. Often called "interest on interest," it accelerates wealth growth over time.
- Diversification
- A risk management strategy that involves spreading investments across various financial instruments, sectors, and other categories to reduce exposure to any single asset or risk.
- EPF (Employees' Provident Fund)
- Malaysia's mandatory retirement savings scheme for employees. Both employers and employees contribute a percentage of the employee's salary to this fund, which provides retirement benefits.
- Fixed Deposit (FD)
- A savings instrument offered by banks that provides a higher interest rate than regular savings accounts, with the condition that money remains deposited for a fixed term.
- Index Fund
- A type of mutual fund or ETF that tracks a specific market index (like the FTSE Bursa Malaysia KLCI). It offers broad market exposure with low management fees.
- Liquidity
- The ease with which an asset can be converted into cash without significantly affecting its price. Cash is the most liquid asset, while real estate is less liquid.
- Net Asset Value (NAV)
- The per-share value of a mutual fund or ETF, calculated by dividing total assets minus liabilities by the number of outstanding shares.
- Ponzi Scheme
- A fraudulent investment operation where returns are paid to earlier investors from the capital contributed by newer investors, rather than from profit earned. Eventually collapses when new investors dry up.
- Risk Tolerance
- The degree of variability in investment returns that an investor is willing to withstand. It depends on factors like investment goals, time horizon, and personal comfort with loss.
- Securities Commission (SC)
- The regulatory body in Malaysia responsible for regulating the capital markets and securities laws. It protects investors and promotes fair and efficient markets.
- Unit Trust
- A collective investment scheme that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Managed by professional fund managers.
- Volatility
- A statistical measure of the dispersion of returns for a given security or market index. Higher volatility means the price can change dramatically in either direction.
- Yield
- The income return on an investment, typically expressed as an annual percentage. For stocks, it's the dividend yield; for bonds, it's the interest yield.