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.
Sunday, August 2, 2009
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!
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