An Interview with Professor Norhafiza Nordin, Professor Norhafiza is a senior lecturer at the Department of Finance, School of Economics, Finance and Banking, Universiti Utara Malaysia. She received her PhD from Universiti Utara Malaysia in 2012. Her main research areas are corporate finance and investment.
Q: These trying times mean that our young people make investment decisions very prudently and with due consideration to changing conditions and situations. What is the advice you have for millennials in this regard?
A: Regardless of the market conditions and products, they must always first determine their current financial position. Examine their goals and risk profile. Make sure to invest in products that best suit their investment’s objective and risk profile. Avoid making an impulsive decision. Another important thing is to avoid making investment decisions that can lead to fraud. Always take time to obtain and check out the investment products before investing.
Q: What are the new investment products on the market and what are those that show the greatest potential in terms of both reach and profit?
A: Two investment products that I see have the potential for growing wealth are cryptocurrency and crowdfunding. Based on an individual’s risk profile, they offer a convenient way of investing and do not require a lot of money to start investing.
Q: What are the major considerations young people should consider when making an investment decision. Sustainable, eco-friendly investments have received a lot of focus now although they may not necessarily yield the best profits. Would millennials be willing to pursue this option?
A: Young people nowadays are seen to care more about the environment, society, and governance. Therefore, I believe that ESG investing will continue to receive attention and become the main consideration in their investment decision-making process.
Nevertheless, regardless of the type of investment, easy access plays an important role in attracting young people to choose the product. Raised in the digital era, they are a tech-savvy generation who have the world at their fingertips. They usually prefer products that do not require complicated processes, and they can do DIY at their own convenient time.
Q: What is your take on new developments such as crowdfunding investment and are there newer ways to realise their true potential?
A: New investment products will continue to gain popularity due to their easy access. As these products become increasingly accessible to more people, especially millennials, they will be part of a diversified investment strategy.
Due to COVID-19, many investors may turn to these new products. As technology continues to advance, so do these new investment products. Parallel with the development of technology and advancement in globalisation, these investment products offer more opportunities for investors to make money.
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