Moduers Story – Investing Online vs Bank

I started investing in mutual funds for more than 5 years ago. At first, I only knew that there were several types of mutual funds, namely money market funds, mixed funds, and equity funds. After doing some readings, I learned that the equity fund gives the biggest profit, while money market funds are the smallest ones.


Then I started mapping my risk profile. With the little knowledge that I have, I went to the bank to open a mutual fund account. Little did I know, there are still too many funds to choose from, around 20-30 kind of funds. That many choices combined with my little knowledge, I chose a fund house that I most familiar with, who I thought would bring me more profit. The important thing for me is, a part of my money should go into stock funds and another part to the money market funds. It is to get a maximum profit from the investment while having protection.


The process to open an account was quite long and took a lot of time at that time. I had to visit the bank, queue up at the customer service booth, fill up so many forms, which took hours. Back then it was quite complicated and time-consuming for mutual fund investment or for picking out mutual funds, not as practical as it is now, which is just a click away. So there is no reason not to start to invest.


The first time I opened an account, I immediately deposit a lump sum method. Unfortunately, I don’t see that much of progress from my investment because I didn’t invest regularly. I deposit my money for the first few months and that’s it. If only I stick to my routine and keep investing, I would have much more by now. But there’s nothing I can do about it now.


Finally, I tried investing again, this time regularly, more consistent, and more money. What I set aside right now is not only for my savings but also for my investment. I am grateful for technology because, to start investing right now, no more long queue and hours spent. Within minutes, I am officially an investor, so much more convenient compared to the old days. Now that I have invested for a few years, I begun to see results. Now, 40% of my monthly income is from my investment. Back then, not even 1%. Come to think about it. Not bad, huh? My short-term target is to have my investment returns at least equal to or greater than my salary. As for my long-term target, I want to live out of my passive income, when I no longer work because I have to, but only to give back to society. I believe in the power of compound interest.




Moduers Story is a column written by Moduit users. All experiences are personal to and has become the responsibility of each writer.


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