Money Market and Capital Market Solutions.
Our dedicated teams specialising in Islamic and Conventional products are active in trading and investments of money market and capital market instruments to help you generate the most yield out of your cash, whether you are corporate, institution or individual.
Islamic Fixed Deposit.
Commodity Murabahah Deposit-i (CMD-i).
The CMD-i provides customers with certainty of returns i.e. fixed profit that is undertaken based on a pre-agreed profit margin or marked-up price.
The fixed profit rate is derived from the sale and purchase of Shariah-compliant commodities based on the concept of Murabahah via a Tawarruq arrangement.
Conventional Fixed Deposit.
Term & Call Deposits.
Term Deposit is a deposit placed at a fixed interest rate for a specified maturity period, which can be for a short or long-term tenure.
Whereas for Call Deposit, the deposit bears a return at an agreed interest rate with no specified maturity date, giving you immediate access to your funds while still enjoying competitive returns.
Frequently Asked Questions
What is the difference between money market and capital market?
Before we can discuss the difference between a money market and a capital market, first we have to understand what is a money market and a capital market. The first thing you need to know is that the money market and capital market are two broad components of the global financial system.
The biggest difference between these two components is that by definition, a money market is the act of trading short-term debt between financial institutions, such as banks. Meanwhile, the capital market is the act of trading both stocks and bonds.
What are the types of money market and capital market instruments in Malaysia?
In Malaysia, the main money market instruments available are;
- Bankers Acceptances (BAs)
- Negotiable Instruments of Deposits (NIDs)
- Treasury Bills
- Bank Negara Bills
- Money Market Deposits
While some of the capital market instruments in Malaysia are as follows;
- Equities
- Fixed Income
- SRI Sukuk
- Private Equity
- Venture Capital
What is a money market fund?
A money market fund is a type of mutual fund that invests in highly liquid, short-term instruments. In Malaysia, these instruments can be Bankers Acceptances, Treasury Bills, Bank Negara Bills, and such.
An example of a money market fund is a cash management fund, a government money fund, and others.
What are the benefits and risks of investing in the money market / capital market?
The benefits and risks of investing in the money market are as follows;
Benefits;
- The money market has the potential to provide higher yields compared to other conventional cash equivalents such as savings or money market accounts from a bank or credit union
- The money market provides liquidity for investors, as these funds are invested in securities that mature in the short term, compared to other alternative investments.
- The money market is safer than other alternative investments as it is highly regulated.
Risks;
- There are some cases where the yields generated by a money market fund can be lower than the inflation rate. You might want to be careful, because if this is the case, then you might be losing out on purchasing power even though you’re generating money.
- Although it might have the potential to bring higher yields than normal conventional savings, it still might lose out compared to other investment opportunities.
Meanwhile, the benefits and risks of investing in the capital market is as follows
Benefits
- Capital market investing provides higher potential for long term growth, which can lead to higher returns over time.
- Capital market investing provides opportunities for diversification, which ensures that your investment is not placed in just one basket
- Capital market provides higher transparency, which allows investors to fully understand the companies that they are investing in.
Risks
- Capital market investing can be highly volatile, so it is important for investors to always keep track of their investments.
- Capital market investments carry a higher potential risk compared to other forms of investments.
- Capital markets can be less regulated, which exposes investors to fraud risk.
How can you invest in the money market or capital market?
If you’re looking for good money market or capital market investment opportunities, then you can’t go wrong with MIDF money market instruments. MIDF provides investors with opportunities to put their money in trading and investments of money market and capital market instruments, which will help them generate higher returns.
