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How to invest in Bursa Malaysia KLCI index funds in 2025
In this guide
- 1. How to invest in Bursa Malaysia KLCI index funds in 2025
- 2. Where can I invest in the Bursa Malaysia KLCI index?
- 3. How do I invest in the BURSA index?
- 4. The different ways to invest in the BURSA
- 5. How much does it cost to invest in the Bursa Malaysia KLCI index?
- 6. Should I invest in the Bursa Malaysia KLCI index?
- 7. FAQs
Trade your favourite markets with our top-rated broker, .
CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.
It only takes a few minutes to invest in the Bursa Malaysia KLCI index. One of the simplest and most popular ways to invest is to buy shares in a Vanguard Bursa Malaysia KLCI ETF through an online trading platform.
Where can I invest in the Bursa Malaysia KLCI index?
Copy link to sectionAccording to our expert research, Plus500 is the best ETF broker to invest in Bursa Malaysia KLCI index funds.
Both Bursa Malaysia KLCI ETFs and Bursa Malaysia KLCI CFDs are available to invest in through Plus500 .
Here are three more places to buy the Bursa Malaysia KLCI, ranked according to their cost, security, and features.
Plus500
CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.
51% of retail CFD accounts lose money. Your capital is at risk.
How do I invest in the BURSA index?
Copy link to sectionThe easiest way is to sign up to a stock broker, open an investment account, and buy shares in an Bursa Malaysia KLCI ETF or CFD. This guide explains how to do it:
Step 1. Sign up to Plus500
Copy link to sectionWe recommend using Plus500 to invest in Bursa Malaysia KLCI. Sign up for a brokerage account and deposit some money. You may need to supply a form of photo ID to verify the account.
CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions. Plus500
Step 2. Decide how to buy Bursa Malaysia KLCI
Copy link to sectionThis boils down to choosing between an Bursa Malaysia KLCI ETF or CFD. ETFs are generally better suited to investors who want to passively track the Bursa Malaysia KLCI’s performance. CFDs offer a greater range of trading options: you can use leverage, short the index, or buy and sell it outside of trading hours.
Step 3. Invest in the Bursa Malaysia KLCI
Copy link to sectionSign into your trading account and search for the Bursa Malaysia KLCI. Hit the ‘buy’ button and enter the details of your purchase, such as how much you want to spend. Hit ‘buy’ again to execute the trade.
Step 4. Monitor your investment
Copy link to sectionWhen you buy a CFD, the trade goes through more or less instantly, and you’ll be able to see your new open position in your trading account. ETF purchases can take longer, and if you buy outside of traditional trading hours it won’t go through until the next morning.
Your trading account will show the price change in the Bursa Malaysia KLCI since you bought it, so you can see your profit/loss at a glance. Use that information, along with your own research, to decide when to sell the Bursa Malaysia KLCI and close your position, ideally at a profit!.
The different ways to invest in the BURSA
Copy link to sectionAs we mentioned above, there are numerous ways to put your money into the Bursa Malaysia KLCI. ETFs and CFDs are the simplest options for beginners, but there are alternatives. Here’s a brief overview of each option and who it’s best suited for.
Bursa Malaysia KLCI ETFs
Copy link to sectionAn ETF (exchange-traded fund) is an investment fund traded on a stock exchange, much like a stock. Exchange traded funds can hold different assets, such as individual stocks, bonds, or commodities, or serve as a proxy for a stock market index.
An Bursa Malaysia KLCI ETF is one way of investing in the Bursa Malaysia KLCI. It’s simply an investment fund that mirrors the performance of the Bursa Malaysia KLCI. When you buy shares in the fund, the value of your investment will rise or fall with the Bursa Malaysia KLCI itself.
ETFs are ideal for new investors because they have a very low minimum investment. You can start with a few pounds and get exposure to some of the world’s largest companies. They’re also practical if you plan on trading the Bursa Malaysia KLCI index, because you can buy or sell shares in the fund throughout the day.
Examples of popular BURSA ETFs
- FTSE Bursa Malaysia KLCI ETF
- Principal FTSE ASEAN 40 Malaysia ETF
Bursa Malaysia KLCI index funds
Copy link to sectionAn index or mutual fund is an investment fund that aims to track the performance of a stock market index, such as the Bursa Malaysia KLCI. It’s very similar to an ETF, in that there are low management fees and you can buy shares through your online broker.
However, there are a couple of differences. Bursa Malaysia KLCI index funds are only priced at the end of each trading day, so you can buy or sell shares in the fund once per day. There may also be a higher barrier to entry, through a much larger minimum investment when you invest in Bursa Malaysia KLCI index funds.
That means an Bursa Malaysia KLCI mutual fund is better suited for long term investors with a higher initial budget, where the infrequent trading and barriers to entry are far less of an issue.
Bursa Malaysia KLCI CFDs
Copy link to sectionCFDs (contracts for difference) are a way to speculate on Bursa Malaysia KLCI price changes with more flexibility than if you use an ETF or index fund. A CFD is a ‘derivative’, which means it gets its value from the underlying asset – in this case the Bursa Malaysia KLCI – but it’s separate from it.
As a result, CFDs can be leveraged, where you borrow money to multiply the size of the trade, or they can be used to go ‘short’, where you place a trade on the index to fall in value. You can also buy and sell them outside of regular trading hours.
All of this means Bursa Malaysia KLCI CFDs offer the potential to outperform a fund that passively tracks the Bursa Malaysia KLCI’s performance. Of course, you can also underperform it as well. Tools like leverage and shorting introduce a lot more risk, and are best left to experienced traders.
Bursa Malaysia KLCI futures
Copy link to sectionFutures contracts are agreements to buy or sell the BURSA at an agreed price on a set date in the future. Bursa Malaysia KLCI futures are a means to predict how you think the index is going to perform over a set time frame, such as the next three or six months.
Most futures contracts involve leverage, so you only put up a small part of the total trade value (the margin) when you buy one. That makes futures more risky, and they require a bit more financial expertise to understand as well.
Some traders use futures as a hedge against the performance of stocks they own. For instance, if you own stocks that are part of the Bursa Malaysia KLCI then you might want to short the Bursa Malaysia KLCI so that you still make some money if the price falls.
Bursa Malaysia KLCI stocks
Copy link to sectionAnother way to invest in the Bursa Malaysia KLCI is to buy shares in the individual stocks that the index tracks. It isn’t practical to buy every share in the index, but you can invest directly into a few of the most heavily weighted stocks in the Bursa Malaysia KLCI in order to get broad exposure to its performance.
The most heavily weighted stocks in the Bursa Malaysia KLCI tend to be the largest companies by market capitalisation. If you invest directly in those largest stocks, you gain exposure to the index without taking on the risk of all the underlying companies.
One reason to do this is that these larger companies with the highest market cap dominate the index anyway, so that it can give you the impression of a diversified portfolio while actually being reliant on the performance of those particular stocks.
For the Bursa Malaysia KLCI index, the largest stocks you might choose to invest in are:
| Company | Index weight |
|---|---|
| Malayan Banking Berhad (MAYBANK) | 11.43% |
| Public Bank Berhad (PBBANK) | 8.72% |
| Top Glove Corporation Berhad (TOPGLOV) | 5.06% |
| CIMB Group Holdings Berhad (CIMB) | 4.94% |
| Hartalega Holdings Berhad (HARTA) | 4.75% |
| Tenaga Nasional Berhad (TENAGA) | 4.55% |
| RHB Bank Berhad (RHBBANK) | 3.95% |
| Genting Berhad (GENTING) | 3.46% |
| Axiata Group Berhad (AXIATA) | 3.24% |
| IOI Corporation Berhad (IOICORP) | 2.99% |
The flip side of investing directly like this is that you lose the diversification and stability that comes with buying into an entire index. It requires much more hands-on management to do your own stock picking, so it’s best suited to more experienced investors.
How much does it cost to invest in the Bursa Malaysia KLCI index?
Copy link to sectionFrom $0 to $5, depending on how you invest. For each option, you must consider the cost of buying the actual asset, whether that’s an ETF, index fund, CFD, or share, plus the fees associated with it.
| Instrument | Trading fee | Management fee |
|---|---|---|
| Exchange traded funds | $0-$5.99 | 0-0.2% |
| Index fund / mutual fund | $0-$5.99 | 0.1-2% |
| Individual stock | $0-$3 | None |
| CFD | $0 | None |
*A fee comparison of 3 leading brokers for example purposes
ETFs and CFDs are generally the cheapest option overall, as they have low fees and a low minimum investment. Index funds and mutual funds have low fees but may have a high minimum investment. Buying individual stocks is the most expensive option in absolute terms, because the share price of a single large company is often more than $100.
All options are likely to include a trading fee, which you pay each time you make a transaction. Some trading platforms offer zero-fee trading, with others it may be a few dollars.
Then ETFs and index funds each have their own expense ratio. Expense ratios refer to an annual management fee, charged as a percentage of your total investment. Expense ratios are usually no more than 0.05%, so if you invest $1,000, you would pay $5 per year in management fees.
Should I invest in the Bursa Malaysia KLCI index?
Copy link to sectionYes, Bursa Malaysia KLCI investing is a great choice if you’re looking for a safer investment with more price stability compared to picking individual stocks. It gives you an instantly diverse portfolio with exposure to a broad area of the stock market.
The flip side is that you have less control over which companies you invest in. An index committee decides how the index works, and you can’t pick and choose the underlying companies you like the most. The Bursa Malaysia KLCI is better suited to hands-off investors, compared to those who have the skills, experience, and desire to pick their own stocks.
What are the advantages of investing in the Bursa Malaysia KLCI index?
Copy link to sectionAn index provides instant stock market diversification, where you spread your risk across a large number of underlying companies, rather than one or two. Here are some more reasons why you might want to invest in the Bursa Malaysia KLCI index:
- The Malaysian economy is growing. Malaysia is a rapidly developing country that has a young population. Investing in the FTSE Bursa gives easy access to the broader Malaysian economy.
- Invest in the largest Malaysian companies. The FTSE Bursa Malaysia KLCI index is comprised of 30 of the largest companies in Malaysia. These companies are spread across various sectors, providing investors exposure to a diversified portfolio in the region.
- Good potential for growth. Many of the companies in the index are leaders in their respective industries. Some of these companies are young and have the potential for long-term growth.
- The index is the easiest way to invest in the Malaysian market. Investors interested in Malaysia will find the FTSE Bursa the easiest way. Rather than buying individual stocks, several FTSE Bursa index trackers, such as ETFs, make investing easy for anyone.
What are the disadvantages of investing in the Bursa Malaysia KLCI index?
Copy link to sectionThe main risk of investing in the Bursa Malaysia KLCI is that all the underlying companies are related in some way, so a broader economic downturn that affected the entire country would likely affect many stocks in the index at the same time. Here are some more risks of Bursa Malaysia KLCI investing.
- Political risk. The Malaysian political landscape has been volatile in recent years, with frequent changes in government and policy. These political risks can add uncertainty and volatility to Malaysian stocks and the index.
- A few companies make up the bulk of the index. While the index is spread across 30 of the best companies, just a few comprise the majority. If one or two of them underperform, the whole index may suffer.