Tips For Investing Your Small Savings

I only have a limited amount of money (Dh3,000). Where can I invest it, and receive the highest return?

Many times we hear this million dollar question “When on earth do I start my savings plan?”

It means you want to start saving, and you’d like nothing more than to invest in funds, equities, shares and bonds that you hear so much about but all you have is a couple of dirhams.

Don’t forget, take action: you have to start somewhere. The important issue is to employ some discipline from outset so the saving becomes a natural habit.

You will be surprised how quickly your funds will start to grow particularly with some careful financial planning.

Saving today with all the choices available can be much more satisfying and financially rewarding than it ever has been.



The first thing to do is to question what you want your money to do for you.

Typically people save money in banks but over the medium to long term their funds would be better served elsewhere.

This is due to the erosive effects of inflation, and at present the very low interest rates we receive on our deposits.

Banks are good for your short-term money and there are various options available in the offshore market depending on individual circumstances.

Savings accounts and fixed-term deposits are useful tools for maximising returns only in the short term.

However, a carefully constructed savings plan could yield more interest on your hard-earned money.

Depending on your attitude to risk, you can use secure & guaranteed funds, tracker funds, bond funds, managed equity funds, property funds and all points in between. One can place the asset in trust and incorporate some protection (life insurance) if required.

Solid financial planning using a range of vehicles is key to growing your money in the long term.

Despite virtually limitless options, you will find the savings product to suit your needs – all it takes is a little patience and a good deal of persistence.

And watching your money grow will make it all worthwhile in the end.

One is also better off saving offshore to increase their investor protection, and to keep their financial matters confidential.

You should consider the following before considering your options:

Don’t be greedy
Don’t expect to be a millionaire overnight. Patience pays, so be realistic.
Don’t panic if the market drops, still let the savings go on.
Don’t trade for the short-term, unless you have the expertise to do so.

Most importantly, you should get some professional advice in getting your money working harder, and encourage you to keep saving while working overseas so you can go home wealthy!