There are 3 common strategies used in unit trust investment:
1. Ringgit Cost Averaging
Regularly invest a fix amount in a unit trust fund regardless of market trend is called the Ringgit Cost Averaging strategy. The actual market performance is fluctuating. When the equity market is high, you buy less unit with the same amount. When the market is low, you buy more unit. For long term, you will get much more unit in the lower price range.
2. Portfolio Re-balancing (Asset Allocation)
Portfolio re-balancing is the process of bringing the different asset classes back into proper relationship following a significant change in one or more. More simply stated, it is returning your portfolio to the proper mix of stocks, bonds and cash when they no longer conform to your plan.
Example:
You start investing 50% in equity and 50% in fixed income fund. 1 year later, the equity rises and now your portfolio consist of 80% equity and 20% fixed income fund.To re-balance your portfolio, you should sell 30% of your total fund in equity and invest it in fixed income fund so that the portfolio is maintained.
This is the simple principle of buying low, and selling high.
3. Switching
Switching will lock in the gain you made in your unit trust investment. Switching fees are low and definitely lower than the upfront service charge. When you are making profit from an equity fund, you can switch it to some lower risk fund to lock the gain instead of selling it for cash. When the market turn low, you can switch it back to equity fund.
Source: http://kclau.com/
Saturday, March 6, 2010
Saturday, February 27, 2010
Sunday, January 24, 2010
Sunday, October 11, 2009
Peluang Kerjaya Sebagai Perunding Unit Amanah
Saya ingin mempelawa anda untuk menyertai kumpulan saya di Public Mutual dan menjadi Perunding Amanah Saham (Unit Trust Consultant) secara full time / part time.
Syarat asasnya anda perlulah berumur sekurang-kurangya 21 tahun dan mempunyai sekurang-kurangya kelulusan SPM. Untuk berjaya pula, anda haruslah mempunyai sikap yang positif dan sukakan cabaran. Public Mutual menawarkan komisyen dan insentif yang sangat menarik dan ramai yang telah berjaya di dalam kerjaya ini.
Antara Kelebihan Menjadi Perunding Amanah Saham ialah:-
1) Unlimited Income Potential (Direct / Indirect Commission)
Di Public Mutual, anda akan dibayar setimpal dengan usaha anda. Sebagai ejen biasa, komisyen anda adalah seperti berikut:
Pelaburang Tunai: 2.75% daripada jumlah sales
Pelaburan EPF: 2% daripada jumlah sales
2) Bonus Tahunan
Bayaran bonus adalah berdasarkan jumlah jualan sepanjang tahun.
3) Free Incentive & Challenge Trip
Setiap tahun, Public Mutual akan melancarkan kempen 'Free Incentive & Challenge Trip' yang mana konsultan yang layak akan ditaja untuk melancong di destinasi yang ditetapkan (Untuk kempen 2009, destinasinya adalah Sudan, Seoul dan Bali). Jumlah jualan yang diperlukan dalam lingkungan RM700,000 dan ke atas.
4) Career Benefit
Career Benefit ini bolehlah dianggap sebagai residual income yang akan dibayar setiap bulan. Pengiraannya adalah berdasarkan jumlah Asset Under Management (AUM) iaitu jumlah keseluruhan pelaburan oleh klien kita. Dengan kata lain, selagi pelabur kita tidak menjual pelaburan mereka, selagi itulah kita akan mendapat Career Benefit ini.
Peratusan Career Benefit ini agak kecil berbanding Direct Commission tetapi jika kita telah menceburkan diri di dalam bidang ini untuk beberapa tahun dan mempunyai AUM yang besar, maka besarlah jumlah yang akan kita perolehi.
Sebagai contoh, konsultan yang mempunyai AUM sebanyak RM15,000,000 akan mendapat Career Benefit sebanyak RM2500 setiap bulan.
5) Career Prospect
Anda boleh mengembangkan kerjaya anda dengan menggunakan subsidi daripada Public Mutual untuk menjadi Certified Financial Planner (CFP). Sebagai seorang CFP, kredibiliti anda akan bertambah dan boleh membantu memajukan lagi perniagaan anda.
Bagaimana Untuk Menjadi Konsultan Unit Amanah?
Lesen untuk memasarkan Unit Trust mestilah diperolehi daripada FMUTM (Federal Malaysian Unit Trust Manager). Oleh itu, konsultan baru perlulah menduduki ujian CUTE (Computerised Unit Trust Examination) oleh FMUTM. Public Mutual ada menyediakan kelas tutorial.
Yuran Pendaftaran hanya RM264. Jika konsultan berjaya mendapatkan sales sebanyak RM50,000 di dalam masa 6 bulan, Public Mutual akan memulangkan semula yuran pendaftaran ini.
Hubungi saya jika anda berminat menjadi konsultan unit amanah:-
Rabita Yusoff
Unit Trust Consultant
PUBLIC MUTUAL BHD
012-232-0276
yusoffr@yahoo.com
Syarat asasnya anda perlulah berumur sekurang-kurangya 21 tahun dan mempunyai sekurang-kurangya kelulusan SPM. Untuk berjaya pula, anda haruslah mempunyai sikap yang positif dan sukakan cabaran. Public Mutual menawarkan komisyen dan insentif yang sangat menarik dan ramai yang telah berjaya di dalam kerjaya ini.
Antara Kelebihan Menjadi Perunding Amanah Saham ialah:-
1) Unlimited Income Potential (Direct / Indirect Commission)
Di Public Mutual, anda akan dibayar setimpal dengan usaha anda. Sebagai ejen biasa, komisyen anda adalah seperti berikut:
Pelaburang Tunai: 2.75% daripada jumlah sales
Pelaburan EPF: 2% daripada jumlah sales
2) Bonus Tahunan
Bayaran bonus adalah berdasarkan jumlah jualan sepanjang tahun.
3) Free Incentive & Challenge Trip
Setiap tahun, Public Mutual akan melancarkan kempen 'Free Incentive & Challenge Trip' yang mana konsultan yang layak akan ditaja untuk melancong di destinasi yang ditetapkan (Untuk kempen 2009, destinasinya adalah Sudan, Seoul dan Bali). Jumlah jualan yang diperlukan dalam lingkungan RM700,000 dan ke atas.
4) Career Benefit
Career Benefit ini bolehlah dianggap sebagai residual income yang akan dibayar setiap bulan. Pengiraannya adalah berdasarkan jumlah Asset Under Management (AUM) iaitu jumlah keseluruhan pelaburan oleh klien kita. Dengan kata lain, selagi pelabur kita tidak menjual pelaburan mereka, selagi itulah kita akan mendapat Career Benefit ini.
Peratusan Career Benefit ini agak kecil berbanding Direct Commission tetapi jika kita telah menceburkan diri di dalam bidang ini untuk beberapa tahun dan mempunyai AUM yang besar, maka besarlah jumlah yang akan kita perolehi.
Sebagai contoh, konsultan yang mempunyai AUM sebanyak RM15,000,000 akan mendapat Career Benefit sebanyak RM2500 setiap bulan.
5) Career Prospect
Anda boleh mengembangkan kerjaya anda dengan menggunakan subsidi daripada Public Mutual untuk menjadi Certified Financial Planner (CFP). Sebagai seorang CFP, kredibiliti anda akan bertambah dan boleh membantu memajukan lagi perniagaan anda.
Bagaimana Untuk Menjadi Konsultan Unit Amanah?
Lesen untuk memasarkan Unit Trust mestilah diperolehi daripada FMUTM (Federal Malaysian Unit Trust Manager). Oleh itu, konsultan baru perlulah menduduki ujian CUTE (Computerised Unit Trust Examination) oleh FMUTM. Public Mutual ada menyediakan kelas tutorial.
Yuran Pendaftaran hanya RM264. Jika konsultan berjaya mendapatkan sales sebanyak RM50,000 di dalam masa 6 bulan, Public Mutual akan memulangkan semula yuran pendaftaran ini.
Hubungi saya jika anda berminat menjadi konsultan unit amanah:-
Rabita Yusoff
Unit Trust Consultant
PUBLIC MUTUAL BHD
012-232-0276
yusoffr@yahoo.com
Sunday, August 16, 2009
How to Buy Unit Trusts Thru Me?
A. Set appointment to meet face-to-face
Call me at 012-232-0276 or email me at rabieta@gmail.com. We will set up time to meet face-to-face. During the meeting, assuming you are new to unit trust, I will briefly explain what unit trust is all about. We will go thru any questions you have in mind related to investment in unit trust, find out what type of investor you are and discuss your financial goal/planning.
If you are interested to invest in unit trust, you will need to sign a few forms depending on type of investment:
1. Cash (with or without regular top up / Standing Instruction)
2. EPF.
Notes: Detail of forms is listed below.
B. Virtual meeting via phone call or instant messenger
Call me at 012-232-0276 or contact me at Yahoo Messenger via my id, yusoffr. During the meeting, assuming you are new to unit trust, I will briefly explain what unit trust is all about. We will go thru any questions you have in mind related to investment in unit trust, find out what type of investor you are, and discuss your financial goal/planning.
If you are interested to invest in unit trust:
1. I will mail you the relevant forms as listed below:
a. New Investor Particulars Form
b. Investment Application Form
c. Telemutual Pin Application Form
d. Maybank Direct Debit form (if you are interested in making a periodic Standing Instruction)
e. If you are interested to invest in EPF:
i. EPF Investment form (Public Mutual Form)
ii. EPF Form
2. Sign all of the above forms. I will fill in all the other information
3. Inform me the following:
a. Which fund you want to invest in
b. Handphone no, mailing address, email address
c. Whether you want the distribution to be reinvested or paid out
d. Marital status, race, occupation and monthly income
4. Mail me:
a. All the forms, signed (thumb-printed for EPF Forms)
b. Information as per item 3
c. Photocopy of IC front and back on one page (for new Public Mutual investor only)
d. Photocopy of IC front and back on one page (with left and right thumbprints on the same page if you want to invest in EPF)
5. For cash investment, bank in your money to my Maybank / Public Bank / CIMB account (account number will be provided upon request) or mail me your cheque, pay to Public Mutual Berhad, together with the forms as in Step 4.
To find out all available unit trust funds under Public Mutual and the detail of the funds, please go to http://www.publicmutual.com.my/page.aspx?name=utp_main
Saturday, August 15, 2009
Asset Allocation
For investors who want to invest large sum of cash or EPF money, they are advised to do Asset Allocation, allocate money into a few baskets instead of 1 basket so that the increase and decrease of funds profit can be balanced out.
For instance, investment of $100,000 for moderate investor type:
40% $40,000 - Balanced Fund - Conservative - PIBF
30% $30,000 - Equity Fund - Moderate - PIDF, PIADF
30% $30,000 - Equity Fund - Aggressive - PCIF, PAIF
----------------------
100% $100,000
----------------------
For instance, investment of $100,000 for moderate investor type:
40% $40,000 - Balanced Fund - Conservative - PIBF
30% $30,000 - Equity Fund - Moderate - PIDF, PIADF
30% $30,000 - Equity Fund - Aggressive - PCIF, PAIF
----------------------
100% $100,000
----------------------
Friday, August 14, 2009
MutualGold Investment Tool Is On Sale Now - BUY NOW FOR ONLY RM50!
Assalamualaikum dan Salam Sejahtera semua.
I spent some time to create a tool, called MutualGold_InvestmentTool, to help us plan out our investment properly and wisely. This tool is created using Excel Macro VBA. All calculations are done with a click of a button! A very useful user guide is provided to help users to use this tool.
I myself use this tool for my personal and family financial planning and also for my clients (upon request).
BUY NOW at only $50. It is cheap and very useful. You won't regret of having it!
How can this file help us? It provides tools / formula to:
1. Calculate total amount of money we are eligible to withdraw from EPF Account 1 for investment
2. Plan out our financial for retirement age
3. Plan out our financial for children's education
4. Calculate future value of our savings
4. Plan out our financial to become a millionaire
5. Calculate average cost per unit after RCA/top up
BUY NOW at only $50. It is cheap and very useful. You won't regret of having it!
Detail Info:
1. EPF Sheet:
This worksheet is used to get eligible amount to withdraw from EPF account 1 to invest in unit trusts.
2. Retirement Sheet:
This worksheet is used to plan out our retirement age such as how much money we need to have to support our retirement age,how much money we need to save/invest monthly in order to reach the target saving.
3. Education Sheet:
This worksheet is used to plan out our children's education such as how much money we need to have to support their studies,and how much money we need to save/invest monthly in order to reach the target saving.
4. Saving Sheet:
This worksheet is used to calculate future value of our saving.
5. Millionaire Sheet:
This worksheet is used to plan out reach the target saving and how much money we need to save/invest monthly in order to reach the target saving.Make sure to key in data in all of the red boxes
6. RCA Sheet:
This worksheet is used to calculate average cost per unit after top up and the profit gained when price increases to average cost per unit before top upThis worksheet also contains notes/information related to Ringgit Cost Averaging and Compounding.
7. RCA_Note Sheet:
This worksheet contains notes/information related to Ringgit Cost Averaging and Compounding.
8. FundPerfm_Allocation Sheet:
This worksheet contains Shariah funds performance information as at 13/08/2009.For NAV column, it reads the NAV from Note worksheet using Vlookup function.
9. FactorTable Sheet:
This worksheet contains the referral Factor table used in this file.
The copy comes with free Investment Summary template and Dollar Cost Averaging calculation as shown below:
BUY NOW at only $50. It is cheap and very useful. You won't regret of having it!
Saturday, August 8, 2009
KATEGORI DANA
Dana boleh dipilih mengikut objective individu.
KATEGORI DANA
Kategori dana terbahagi kepada dana ekuiti, dana seimbang, dana bon, dana pendapatan tetap dan dana pasaran wang.
Pada amnya, untuk dikategorikan sebagai dana ekuiti melambangkan bahawa bahagian lebih tinggi aset dana akandilaburkan dalam stok/saham untuk memperoleh pertumbuhan modal bagi pemegang unit, dengan pendapatan dianggap sampingan.
Dana seimbang pula, akan memberikan tumpuan terhadap mencapai keseimbangan diantara pertumbuhan modal jangka panjang dan pendapatan dengan membuat sebahagian pelaburan di dalam stok/saham (tetapi bukan kepada takat dana ekuiti), dan sebahagian di dalam sekuriti pendapatan tetap (tetapi pada takat yang kurang daripada dana bon).
Dana bon/pendapatan tetap, pula memberi penekanan ke atas pelaburan dalam sekuriti pendapatan tetap supaya mendapat dan mengagihkan pendapatan tahunan kepada pemegang unit, dengan pertumbuhan modal dianggap sampingan kepada proses pelaburan.
Dana pasaran wang membuat pelaburan, terutamanya di dalam debentur jangka pendek dan instrumen pasaran wang bagi menjamindan mengagihkan pendapatan tahunan kepada pemegang unit.
KATEGORI DANA
Kategori dana terbahagi kepada dana ekuiti, dana seimbang, dana bon, dana pendapatan tetap dan dana pasaran wang.
Pada amnya, untuk dikategorikan sebagai dana ekuiti melambangkan bahawa bahagian lebih tinggi aset dana akandilaburkan dalam stok/saham untuk memperoleh pertumbuhan modal bagi pemegang unit, dengan pendapatan dianggap sampingan.
Dana seimbang pula, akan memberikan tumpuan terhadap mencapai keseimbangan diantara pertumbuhan modal jangka panjang dan pendapatan dengan membuat sebahagian pelaburan di dalam stok/saham (tetapi bukan kepada takat dana ekuiti), dan sebahagian di dalam sekuriti pendapatan tetap (tetapi pada takat yang kurang daripada dana bon).
Dana bon/pendapatan tetap, pula memberi penekanan ke atas pelaburan dalam sekuriti pendapatan tetap supaya mendapat dan mengagihkan pendapatan tahunan kepada pemegang unit, dengan pertumbuhan modal dianggap sampingan kepada proses pelaburan.
Dana pasaran wang membuat pelaburan, terutamanya di dalam debentur jangka pendek dan instrumen pasaran wang bagi menjamindan mengagihkan pendapatan tahunan kepada pemegang unit.
Friday, August 7, 2009
Sunday, August 2, 2009
Understanding Risk
Any investment carries with it an element of risk. Therefore, prior to making any investment, prospective investors should consider the following risk factors:
1. Market Risk
Any purchase of securities will involve an element of risk, As unit trust funds principally invest in listed stocks they may be prone to changing market conditions as a result of global, regional or national economic conditions, governmental policies or political developments. Market uncertainties and fluctuations in the market caused by these uncertainties will affect the net asset value(NAV) of unit trusts which may fall or rise, thus causing the income generated by the fund to fluctuate.
2. Liquidity Risk
The various securities that are purchased by a fund may encounter liquidity risk. Liquidity risk relates to the fund’s ability to quickly and easily trade at a reasonable price, in and out of positions. Should a fund comprise a security that has become temporarily or permanently illiquid or difficult to sell, the fund manager may need to sell the security at a discount to its fair value, which eventually affects the fund’s value.
3. Management Risk
Performance of the fund depends on the experience, expertise, knowledge and investment techniques of the fund manager. Poor management of a fund can cause considerable losses to the fund, which in turn may affect the capital invested.
4. Inflation Risk
Ideally the purpose of any investment is to secure returns that are greater that the inflation rate. While a fund will constantly seek to maximize returns and exceed inflation rate, it may occasionally experience losses, which result in returns that will not keep pace with inflation in the short run.
5. Interest Risk
Fixed income securities and bonds are particularly sensitive to movements in interest rates. When interest rates rise, the value of fixed income securities and bonds fall and vice versa, thus affecting the NAV of the fund. The general interest rate of the country may affect the value of the investment even if the fund(e.g Syariah Fund) does not invest in interest bearing instruments.
1. Market Risk
Any purchase of securities will involve an element of risk, As unit trust funds principally invest in listed stocks they may be prone to changing market conditions as a result of global, regional or national economic conditions, governmental policies or political developments. Market uncertainties and fluctuations in the market caused by these uncertainties will affect the net asset value(NAV) of unit trusts which may fall or rise, thus causing the income generated by the fund to fluctuate.
2. Liquidity Risk
The various securities that are purchased by a fund may encounter liquidity risk. Liquidity risk relates to the fund’s ability to quickly and easily trade at a reasonable price, in and out of positions. Should a fund comprise a security that has become temporarily or permanently illiquid or difficult to sell, the fund manager may need to sell the security at a discount to its fair value, which eventually affects the fund’s value.
3. Management Risk
Performance of the fund depends on the experience, expertise, knowledge and investment techniques of the fund manager. Poor management of a fund can cause considerable losses to the fund, which in turn may affect the capital invested.
4. Inflation Risk
Ideally the purpose of any investment is to secure returns that are greater that the inflation rate. While a fund will constantly seek to maximize returns and exceed inflation rate, it may occasionally experience losses, which result in returns that will not keep pace with inflation in the short run.
5. Interest Risk
Fixed income securities and bonds are particularly sensitive to movements in interest rates. When interest rates rise, the value of fixed income securities and bonds fall and vice versa, thus affecting the NAV of the fund. The general interest rate of the country may affect the value of the investment even if the fund(e.g Syariah Fund) does not invest in interest bearing instruments.
Type Of Unit Trust
1. Equity Funds
An equity unit trust is the most common type of unit trust. The major portion of its assets are generally held in equities or securities of listed companies.
Equity unit trust funds are popular in Malaysia as they provide investors with exposure to the companies listed on Bursa Malaysia. The performance of the units is therefore linked to the performance of Bursa Malaysia. A rising market will normally give rise to an increase in the value of the unit and vice-versa.
There is a wide array of equity unit trusts, available in the market, ranging from funds with higher risk, higher returns to funds with lower risk, lower returns.
a. Aggressive growth funds
These funds invest generally in companies with higher capital growth potential but with associated higher risk
b.Index funds
These funds invest in a range of companies that closely match (or “track”) companies comprising a particular index.
c.International equity funds
These funds invest primarily in overseas share markets.
2. Fixed Income Funds
These funds invest mainly in Malaysian Government Securities, corporate bonds, and money market instruments such as bankers acceptance and fixed deposits. The objective of a fixed income (or bond) funds is usually to provide regular income, with less emphasis on producing capital growth for investors. It is possible, however, for fixed income funds to generate both capital gains and losses during a period of volatile interest rate.
3. Money Market Funds
Money market funds operate in a similar way to a bank account-the unit price is normally set at a fixed amount. Money market funds invest in low risk money market instruments that are in effect short-term deposits(loans) to banks and other-low risk-financial institutions, and in short-term government securities.
4. Real Estate Investment Trusts (REITS)
REITs invest in real properties, usually prominent commercial (office) properties and provide the investor with an opportunity to participate in the property market in a way which is normally impossible to the small time investor. By acquiring units in a listed REITS, however, it is possible to invest a small amount to gain exposure to the property market and have diversification in your portfolio.
5. Exchange Traded Funds (ETF)
ETF is linked unit trust fund whose investment objective is to achieve the same return as a particular market index. ETF often have low expense ratios and can be bought and sold throughout the trading day through a stockbroker, on an exchange.
6. Balanced Funds
Some investors may wish to have an investment in all the major asset classes to reduce the risk of investing in a single asset class. A balanced unit trust fund generally has a portfolio comprising equities, fixed income securities, and cash.
7. Syariah Funds
The main objective of Syariah funds is to provide an alternative avenue for investors sensitive to Syariah requirements. Syariah funds will exclude those companies involved in activities, products or services related to conventional banking, insurance and financial services, gambling, alcoholic beverages and non-halal food products.
An equity unit trust is the most common type of unit trust. The major portion of its assets are generally held in equities or securities of listed companies.
Equity unit trust funds are popular in Malaysia as they provide investors with exposure to the companies listed on Bursa Malaysia. The performance of the units is therefore linked to the performance of Bursa Malaysia. A rising market will normally give rise to an increase in the value of the unit and vice-versa.
There is a wide array of equity unit trusts, available in the market, ranging from funds with higher risk, higher returns to funds with lower risk, lower returns.
a. Aggressive growth funds
These funds invest generally in companies with higher capital growth potential but with associated higher risk
b.Index funds
These funds invest in a range of companies that closely match (or “track”) companies comprising a particular index.
c.International equity funds
These funds invest primarily in overseas share markets.
2. Fixed Income Funds
These funds invest mainly in Malaysian Government Securities, corporate bonds, and money market instruments such as bankers acceptance and fixed deposits. The objective of a fixed income (or bond) funds is usually to provide regular income, with less emphasis on producing capital growth for investors. It is possible, however, for fixed income funds to generate both capital gains and losses during a period of volatile interest rate.
3. Money Market Funds
Money market funds operate in a similar way to a bank account-the unit price is normally set at a fixed amount. Money market funds invest in low risk money market instruments that are in effect short-term deposits(loans) to banks and other-low risk-financial institutions, and in short-term government securities.
4. Real Estate Investment Trusts (REITS)
REITs invest in real properties, usually prominent commercial (office) properties and provide the investor with an opportunity to participate in the property market in a way which is normally impossible to the small time investor. By acquiring units in a listed REITS, however, it is possible to invest a small amount to gain exposure to the property market and have diversification in your portfolio.
5. Exchange Traded Funds (ETF)
ETF is linked unit trust fund whose investment objective is to achieve the same return as a particular market index. ETF often have low expense ratios and can be bought and sold throughout the trading day through a stockbroker, on an exchange.
6. Balanced Funds
Some investors may wish to have an investment in all the major asset classes to reduce the risk of investing in a single asset class. A balanced unit trust fund generally has a portfolio comprising equities, fixed income securities, and cash.
7. Syariah Funds
The main objective of Syariah funds is to provide an alternative avenue for investors sensitive to Syariah requirements. Syariah funds will exclude those companies involved in activities, products or services related to conventional banking, insurance and financial services, gambling, alcoholic beverages and non-halal food products.
The Sun Tuesday August 26 2008 - What is your best advice on how to choose a Unit Trust fund or to begin investing?
A1: Chai Sok Ling from Petaling Jaya
Everyone should have a financial plan. Unfortunately, due to limited options in the past, most people still have doubts and continue to prefer fixed deposits. However, we need to change our mindsets, be flexible and willing to explore new investment options available. Through personal experiences, unit trust still remains my favorite investment choice though I have invested in stock market, fixed deposits, insurance and others. Everyone has to start somewhere and my research on unit trusts has led me to the following conclusions:
1. Identify your financial goals, initial investment and your target return on investment
2. Broaden your investment knowledge by reading up and doing your homework
3. Have a regular saving plan (e.g. monthly)
4. Constantly evaluate your investment portfolio according to your objective
5. Acknowledge the risks involved
It doesn’t bother me that my unit trust funds have not been performing well due to market uncertainties. Instead, my investment strategy is to buy more funds at lower prices as price averaging plays a vital role in the overall returns. When the economy picks up, I will be able to sell at a higher price as long as it does not tamper with my investment objective.
A2: Jolly Lee Shiat Mei from Bintulu, Sarawak
To me, saving and investments are not supposed to be rocket science. If you want to save, the rule of thumb is to pay yourself first before you pay others. So, mathematically, EXPENDITURE equals to INCOME minus SAVINGS/INVESTMENTS (INCOME - SAVINGS/INVESTMENTS = EXPENDITURE). Spend only after you put aside your savings and investments. If you are not disciplined enough, incorporate forced savings into your monthly regime; for example have a fixed ampunt automatically paid out from your bank account into saving plan or investment vehicle at the beginning of every month.
To invest in unit trust funds, first, identify the type of investments according to your objectives, risk level, time horizon, amount to be invested and return targets. Most importantly, stick to the original objectives despite receiving numerous tips or advice later on.
Everyone should have a financial plan. Unfortunately, due to limited options in the past, most people still have doubts and continue to prefer fixed deposits. However, we need to change our mindsets, be flexible and willing to explore new investment options available. Through personal experiences, unit trust still remains my favorite investment choice though I have invested in stock market, fixed deposits, insurance and others. Everyone has to start somewhere and my research on unit trusts has led me to the following conclusions:
1. Identify your financial goals, initial investment and your target return on investment
2. Broaden your investment knowledge by reading up and doing your homework
3. Have a regular saving plan (e.g. monthly)
4. Constantly evaluate your investment portfolio according to your objective
5. Acknowledge the risks involved
It doesn’t bother me that my unit trust funds have not been performing well due to market uncertainties. Instead, my investment strategy is to buy more funds at lower prices as price averaging plays a vital role in the overall returns. When the economy picks up, I will be able to sell at a higher price as long as it does not tamper with my investment objective.
A2: Jolly Lee Shiat Mei from Bintulu, Sarawak
To me, saving and investments are not supposed to be rocket science. If you want to save, the rule of thumb is to pay yourself first before you pay others. So, mathematically, EXPENDITURE equals to INCOME minus SAVINGS/INVESTMENTS (INCOME - SAVINGS/INVESTMENTS = EXPENDITURE). Spend only after you put aside your savings and investments. If you are not disciplined enough, incorporate forced savings into your monthly regime; for example have a fixed ampunt automatically paid out from your bank account into saving plan or investment vehicle at the beginning of every month.
To invest in unit trust funds, first, identify the type of investments according to your objectives, risk level, time horizon, amount to be invested and return targets. Most importantly, stick to the original objectives despite receiving numerous tips or advice later on.
The Sun Tuesday September 2 2008 - Tell us your best tip on how to get started to invest in unit trust?
A1: Lee Tze Yan, Subang Jaya
1. Before investing in Unit Trust (UT) funds, I will check the company’s bakgroundof the said investment. This include a check on the shareholders, board of directors and the company’s investment and management team. To me, this is the utmost importance as I have to know who is being given the ‘mandate’ to manage my money. The simplest way is to browse the company’s website.
2. Secondly, I must also understand the fund’s investment objectives, its related strategies, current portfolio, and not forget its past performance, if any, as it gives me a rough idea of the risk level of the fund.
3. Next, I will also try to analyse the past performance of the fund. Hence, I will look for consistent performance over the long term. However, I do understand that past performance is not a guarantee for the future performance.
4. Lastly, I will take note of any specific features and constraints which may not meet my requirements. For instance, some funds might have policy of not distributing income or the minimum investment required may be much higher that what I wish to invest.
A2: Wan Azmi Wan Ismail, Sentul Utama
First of all, I would like to stress that UT funds differ from company shares or debentures. The underlying assets of the fund can comprise of a combination of local or global instruments such as shares, bonds, and money market instruments. The advantage of investing in UT funds is that professional fund managers are tasked with monitpring your investment portfolio and unlike shares, you need to monitor them on a daily basis. These managers have access to real-time information and research statistics from analysts and economists globally and should be able to make sound investment decisions.
1. Before investing in Unit Trust (UT) funds, I will check the company’s bakgroundof the said investment. This include a check on the shareholders, board of directors and the company’s investment and management team. To me, this is the utmost importance as I have to know who is being given the ‘mandate’ to manage my money. The simplest way is to browse the company’s website.
2. Secondly, I must also understand the fund’s investment objectives, its related strategies, current portfolio, and not forget its past performance, if any, as it gives me a rough idea of the risk level of the fund.
3. Next, I will also try to analyse the past performance of the fund. Hence, I will look for consistent performance over the long term. However, I do understand that past performance is not a guarantee for the future performance.
4. Lastly, I will take note of any specific features and constraints which may not meet my requirements. For instance, some funds might have policy of not distributing income or the minimum investment required may be much higher that what I wish to invest.
A2: Wan Azmi Wan Ismail, Sentul Utama
First of all, I would like to stress that UT funds differ from company shares or debentures. The underlying assets of the fund can comprise of a combination of local or global instruments such as shares, bonds, and money market instruments. The advantage of investing in UT funds is that professional fund managers are tasked with monitpring your investment portfolio and unlike shares, you need to monitor them on a daily basis. These managers have access to real-time information and research statistics from analysts and economists globally and should be able to make sound investment decisions.
Saturday, August 1, 2009
Talk about thinking out of the box...
If your company, Comb manufacturers assigned you to sell the comb to the monks in the temples? Can you do it?
What is your answer?
a) No Way , Impossible
b) Crazy
c) I will give it a try in order to follow my boss instruction
d) Well, I will try.
e) Ya, I think I can sell ??? (5pcs? 10pcs?50pcs? or more...you name it)
Pick an answer above and read below to find out if you are/you are going to be a successful person or not at all.
The Story : SELLING COMB TO THE MONKS =======================================
There was one company "manufacturing combs" which intends to expand its business and so the management wanted to employ a new Sales Manager.
The company ADVERTISED the vacancy in thenewspaper. They are so many people turned up for the interview everyday....accumulated to almost a hundred people in just few days...
The Company now having the problem to choose the right candidate for this position . So, The Company interviewer had set A Difficult Task to whom who want to come for final interview.
The Task Is To : Selling Comb To Monks InTemples
Only 3 Applicants willing to stay on for this Final Interview challenge. (Mr A , Mr B , Mr C)
The Chief Interviewer instructed: "Now Iwant three of you here to sell these wooden combs to themonks in the temples. You only have 10 days to do it and report to me after that ."
After 10 days, they reported .
The Chief Interviewer asked Mr A: Ho w many have you sold?
Mr A Answered: Only One.
The Chief Interviewer Asked: How did you manage to sell?
Mr A Answered: The monks in the temples scolded me when I show them the comb . But on my way back to down hill I met a young monk who bought it to scratch his head due to dandruff".
The Chief Interviewer then asked Mr B: Ho w manydid you sell?
Mr B replied: 10 pieces. I went to a shrine and noticed many devotees's hair was in bad shape due to strong wind outside the shrine. The monk in there listened to my advice and bought 10 combs for their devotees in showing respect to the Buddha statue.
Then, The Chief Interviewer asked Mr C: Ho wabout you?
Mr C replied: 1,000 units.
The Chief Interviewer and the other 2interviews were astounded.
The Chief Interviewer asked: Ho w you did that?
Mr C replied: I went to a famous temple. After observing for few days I discovered that there were many tourists. I then told the Chief Abbot there. "Sifu, those who come here are much devoted. If you could give them a gift, it will be more elating to them. I told him that I have a bulk of combs here and ask him to raft his handwriting on the combs as a present to those visit here. He was very delighted and straight away ordered 1,000 pieces."
The End of Story .
----
MORAL OF THE STORY ;
====================
HARVARD UNIVERSITY had done a research that says :-
1) 85% of success is due to attitude and 15% is capability
2) Attitude is more important than intelligence, specials skills and luck .
In another word, professional knowledge only constitutes for 15% of success of a person and 85% is due to self-cultivation, public relation and adaptability ability .
Still remember the story of Selling Shoes to African ? When 2 Salesmen were sent to that continent, one of them reported: Can not do it. No one wears shoes there? The second salesman said: It is good to market . A lot ofopportunity .
Success and Failure is dependant on how we face problems.
My dear friends ,
Do you know eagle lives up to about 70 of age? But when it reach about 40 yrs old, it claws start to age and can not grab the preys. It also can not fly as well. So, it is time for the eagle to make a choice; wait for thedeath or goes through a renewal process. If it choose to live, it must try its best flying to the top of the hill. Onthe hill top/summit, it will stay for 150 days. Over the top, it will hits it feathers to the stone so that they will drop and wait for the new ones to grow. After the feathershave grown enough which is about 150 days, it will continue its balance for 30 years life.
Remember, when the economic is good, there are peoples going bankrupt. When business is bad , there are many new millionaires produced as well. So, apply now the 85% rightworking attitude fully.
All the best!
What is your answer?
a) No Way , Impossible
b) Crazy
c) I will give it a try in order to follow my boss instruction
d) Well, I will try.
e) Ya, I think I can sell ??? (5pcs? 10pcs?50pcs? or more...you name it)
Pick an answer above and read below to find out if you are/you are going to be a successful person or not at all.
The Story : SELLING COMB TO THE MONKS =======================================
There was one company "manufacturing combs" which intends to expand its business and so the management wanted to employ a new Sales Manager.
The company ADVERTISED the vacancy in thenewspaper. They are so many people turned up for the interview everyday....accumulated to almost a hundred people in just few days...
The Company now having the problem to choose the right candidate for this position . So, The Company interviewer had set A Difficult Task to whom who want to come for final interview.
The Task Is To : Selling Comb To Monks InTemples
Only 3 Applicants willing to stay on for this Final Interview challenge. (Mr A , Mr B , Mr C)
The Chief Interviewer instructed: "Now Iwant three of you here to sell these wooden combs to themonks in the temples. You only have 10 days to do it and report to me after that ."
After 10 days, they reported .
The Chief Interviewer asked Mr A: Ho w many have you sold?
Mr A Answered: Only One.
The Chief Interviewer Asked: How did you manage to sell?
Mr A Answered: The monks in the temples scolded me when I show them the comb . But on my way back to down hill I met a young monk who bought it to scratch his head due to dandruff".
The Chief Interviewer then asked Mr B: Ho w manydid you sell?
Mr B replied: 10 pieces. I went to a shrine and noticed many devotees's hair was in bad shape due to strong wind outside the shrine. The monk in there listened to my advice and bought 10 combs for their devotees in showing respect to the Buddha statue.
Then, The Chief Interviewer asked Mr C: Ho wabout you?
Mr C replied: 1,000 units.
The Chief Interviewer and the other 2interviews were astounded.
The Chief Interviewer asked: Ho w you did that?
Mr C replied: I went to a famous temple. After observing for few days I discovered that there were many tourists. I then told the Chief Abbot there. "Sifu, those who come here are much devoted. If you could give them a gift, it will be more elating to them. I told him that I have a bulk of combs here and ask him to raft his handwriting on the combs as a present to those visit here. He was very delighted and straight away ordered 1,000 pieces."
The End of Story .
----
MORAL OF THE STORY ;
====================
HARVARD UNIVERSITY had done a research that says :-
1) 85% of success is due to attitude and 15% is capability
2) Attitude is more important than intelligence, specials skills and luck .
In another word, professional knowledge only constitutes for 15% of success of a person and 85% is due to self-cultivation, public relation and adaptability ability .
Still remember the story of Selling Shoes to African ? When 2 Salesmen were sent to that continent, one of them reported: Can not do it. No one wears shoes there? The second salesman said: It is good to market . A lot ofopportunity .
Success and Failure is dependant on how we face problems.
My dear friends ,
Do you know eagle lives up to about 70 of age? But when it reach about 40 yrs old, it claws start to age and can not grab the preys. It also can not fly as well. So, it is time for the eagle to make a choice; wait for thedeath or goes through a renewal process. If it choose to live, it must try its best flying to the top of the hill. Onthe hill top/summit, it will stay for 150 days. Over the top, it will hits it feathers to the stone so that they will drop and wait for the new ones to grow. After the feathershave grown enough which is about 150 days, it will continue its balance for 30 years life.
Remember, when the economic is good, there are peoples going bankrupt. When business is bad , there are many new millionaires produced as well. So, apply now the 85% rightworking attitude fully.
All the best!
Saturday, July 18, 2009
Friday, July 17, 2009
+Thrive+Jan+2009.GIF)
+Thrive+Jan+2009.GIF)
Thursday, July 16, 2009
Unit Trust In Brief
A unit trust is a financial vehicle through which individuals may invest their money. The idea behind unit trust is better returns through collective investing. In other words, it means pooling the investments of many investors, individuals and institutions.
Investing in a unit trust offers investors numerous advantages, including:
a. Professional management at a low cost
b. Safety through the spreading of risk (diversification)
c. Liquidity
d. Ease of transaction
e. Capital appreciation/income stream
The operation of a unit trust may be best explained by outlining its similarities with the operation of a bank. Many individuals deposit money in the banks, for which they receive interest. These individuals expect complete liquidity where they are able to withdraw their deposits in cash at any time. The banks employ professional managers to look after the deposits, which are invested. These managers lend the deposits to other individuals requiring funds and a host of other profit generating facilities of the banks.
Similarly, unit trust holders wish to put their money to generate higher returns. The goal of all investments is to make money work harder, either through producing income or growth. Unit trust holders have liquidity because their units can be readily converted into cash at any time. By investing in unit trusts, it allows them to engage professional fund management companies at a low cost to the individual investors. These management companies diversify the investible funds in many different securities and other approved channels to spread the risk.
The unit trust is constituted through a document known as a Deed which brings together and binds the various parties to the deed:
* The trustee, who holds the assets of the trusts on behalf of the unitholders.
* The management company, who is the promoter of the scheme and provides investment and administrative expertise as well as markets units to the public.
* The unitholders who provide the funds for investment and expect to receive the benefits derived from the investment. The effect of dividing the beneficiaries' interest in the trust into units is that their interest is quantified into discrete portions.
Particular advantages of unit trusts over the pooled investments include:
* The provision of an independent trustee to hold the trust's assets on behalf of unitholders and to watch over their interests on an on-going basis.
* The deed and prospectus are scrutinised by government authorities, prior to an offer of units being made to the general public. The management companies and trustee are themselves approved by the regulators.
* A buy back provision or covenant in each deed which requires the management company to redeem an investor's units within a specified time limit at a price determined in accordance with the deed.
* Provisions in the deed under which the management company and trustee are in a fiduciary position in relation to the trust (i.e. they can only profit in ways laid down under the deed). The investor can determine in advance what costs and charges they will be required to pay to join and stay in the trust.
Investing in a unit trust offers investors numerous advantages, including:
a. Professional management at a low cost
b. Safety through the spreading of risk (diversification)
c. Liquidity
d. Ease of transaction
e. Capital appreciation/income stream
The operation of a unit trust may be best explained by outlining its similarities with the operation of a bank. Many individuals deposit money in the banks, for which they receive interest. These individuals expect complete liquidity where they are able to withdraw their deposits in cash at any time. The banks employ professional managers to look after the deposits, which are invested. These managers lend the deposits to other individuals requiring funds and a host of other profit generating facilities of the banks.
Similarly, unit trust holders wish to put their money to generate higher returns. The goal of all investments is to make money work harder, either through producing income or growth. Unit trust holders have liquidity because their units can be readily converted into cash at any time. By investing in unit trusts, it allows them to engage professional fund management companies at a low cost to the individual investors. These management companies diversify the investible funds in many different securities and other approved channels to spread the risk.
The unit trust is constituted through a document known as a Deed which brings together and binds the various parties to the deed:
* The trustee, who holds the assets of the trusts on behalf of the unitholders.
* The management company, who is the promoter of the scheme and provides investment and administrative expertise as well as markets units to the public.
* The unitholders who provide the funds for investment and expect to receive the benefits derived from the investment. The effect of dividing the beneficiaries' interest in the trust into units is that their interest is quantified into discrete portions.
Particular advantages of unit trusts over the pooled investments include:
* The provision of an independent trustee to hold the trust's assets on behalf of unitholders and to watch over their interests on an on-going basis.
* The deed and prospectus are scrutinised by government authorities, prior to an offer of units being made to the general public. The management companies and trustee are themselves approved by the regulators.
* A buy back provision or covenant in each deed which requires the management company to redeem an investor's units within a specified time limit at a price determined in accordance with the deed.
* Provisions in the deed under which the management company and trustee are in a fiduciary position in relation to the trust (i.e. they can only profit in ways laid down under the deed). The investor can determine in advance what costs and charges they will be required to pay to join and stay in the trust.
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