I recently invested RM1,000 in a low-risk, unit trust fund. I only started working earlier this year, so I didn’t have much money to invest yet. Since I’ve just started to learn about investing, I’m also trying to be careful about how much money I invest for now.
But because I’m still young, I didn’t want to miss out on having time on my side. I know that the longer I invest, the more money I’ll probably make over time.
So, I looked around at a few different low risk investments and compared the annual returns. The numbers didn’t make sense to me though! How was I supposed to know how much money I’d make from my RM1,000 investment in 10 years, if the investment paid an annual return of 4%? Plus, I wasn’t sure how much I’d have left after paying for upfront fees and annual fees. (Did I mention that I’m bad at math to begin with?)
Luckily, I came across Multiply’s basic investment returns calculator. By just putting in the numbers, the calculator helped me figure out how much I’d make from investing RM1,000 for 10 years. This is how it looks:
After calculating, I got the answer for how much money I’d make if I invested RM1,000 for 10 years:
I also got to see a graph of how much my RM1,000 investment will grow to become every year, over 10 years (after taking out the fees to be paid).
As you can see, the graph shows how my investment is increasing each year from RM990 in Year 0 to RM1,326 in Year 10. That’s an increase of 33.9%!
If you’re planning to invest in a fund, our unit trust guide will show you what to look for.
If you’re planning to invest in stocks, here’s what you need to know.
To compare how much you’ll make under two different investments, use our Investment Comparison Calculator.