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
   

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.
 

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.

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.