The secret of Investing in Unit Trust

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/

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

MELABUR MELALUI EPF - PANDUAN KEPADA AHLI KELAYAKAN PELABURAN DI BAWAH PENGELUARAN PELABURAN AHLI

1.0 PENGENALAN
Mulai 1 November 2007, KWSP telah melaksanakan beberapa pembaharuan dalam SKIM KWSP secara berperingkat di bawah inisiatif strategik 'Bukan Hanya Simpanan' seperti mana yang diperuntukkan di bawah Akta KWSP 1991 (pindaan 2007). Ini termasuklah inisiatif untuk memperkenalkan Simpanan Asas bagi menentukan amaun yang layak dilaburkan oleh ahli daripada Akaun 1 di bawah Pengeluaran Pelaburan Ahli (PPA)

2.0 DEFINISI SIMPANAN ASAS
Simpanan Asas ialah satu jumlah simpanan dalam Akaun 1 yang ditetapkan mengikut umur bagi membolehkan ahli memperoleh simpanan sekurang-kurangnya RM120,000 pada umur 55 tahun. Ahli boleh melaburkan simpanan dalam Akaun 1 yang melebihi simpanan asas dalam produk dan menerusi insititusi pelaburan yang diluluskan oleh Menteri Kewangan.






3.0 SYARAT-SYARAT YANG DITETAPKAN

3.1 Mulai 1 Februari 2008 , ahli boleh melaburkan simpanan di bawah PPA tidak melebihi 20% daripada jumlah simpanan yang melebihi Simpanan Asas dalam Akaun 1.
3.2 Pelaburan ini boleh dibuat setiap 3 bulan sekali dan jumlah minimum pelaburan ialah RM1,000.00.
3.3 Jumlah Simpanan Asas dan contoh pengiraan adalah seperti di LAMPIRAN.
3.4 Syarat-syarat am prosedur di bawah Pengeluaran Pelaburan Ahli yang lain masih kekal dan tidak berubah.

Contoh pengiraan