Joined: Nov 04, 2007 Posts: 23 Location: ARA DAMANSARA, Selangor DE
Posted: Thu Nov 08, 2007 10:31 am Post subject: One of the myth of Unit Trust !!
One of the common myth of Unit Trust is.... we should only use EPF money from account 1 for Unit Trust re-investment ! That is totally wrong ! One of the desire which compel Unit Trust investment is the potentially higher return one would get from Unit Trust...
Taking that argument into context, why just limit this value earner to just the EPF money.. In the more developed countries such as USA and Australia, the population adopts Unit Trust ( or sometimes known as Collective Investment Scheme / Mutual Fund ) as the more popular mode of savings. It generally provides better return, especially for the moderate to long term investment horizon ( 3 - 5 years and beyond ).
As an example the average unit trust vs population for USA is USD 31,200 / person ( population of 299.10 million ) while that for Australia is at USD 38,300 / person. Compare that to just USD 1,100 / person for Malaysia !! Certainly a long way for Malaysian to adopt this "developed investment preference"
A fixed deposit can return between 2.5 % to 3.5 % per annum or there about. Stock market can be highly risky and NOT for the smaller retailers. Savings account return an even lower % rate. These obviously lead to the better acceptance of Unit Trust as a reliable avenue for investment.
While Unit Trust is meant for longer term, one can get lucky especially on new launched fund - which is riding a bullish trend. I know of a person (Malay contractor ) who invested RM 1.0 million in SBB Greater China Equity Fund in July 07 ( the fund was launched in June 07 )and have gained 17% by early October.. hence a return of RM170,000 after 3 months !! No other type of investment can provide that type of returns.
CIMB Wealth Advisors do have a large range of funds, both Conventional and Syariah, where realization of higher value can be achieved.
You could opt for regular monthly savings of let say RM500 to RM1000 per month. This can be done via bank standing order, CIMB credit cards ONLY - direct debit etc etc. Please consider smaller but regular savings via Unit Trusts as a start !!
Private message to me for a "first hand tour" on what lies ahead...
Do not be alarmed... Now is the time to adopt $ value Averaging... by buying when its low...
regards
hi... then u means now is the time to do the value averaging already?
i just want to find out now the investment in China market still is gain or loss...
Drexler... pls use private messaging , get my email and contact me via email...
A lot easier to communicate like that...
cheers
hi... wealthkonsultan.
just want to know more abx china/ hongkong market...
how ur think abx the market....
is it time to average our cost now?
y not u ans here to let more ppl know abx it?
then we all will get benefit...
thanks....
Joined: Nov 04, 2007 Posts: 23 Location: ARA DAMANSARA, Selangor DE
Posted: Thu Jan 31, 2008 9:57 pm Post subject:
Reason for email is simple..... I will give personalize service / advice.. That's how I make money... maaa..!
Anyhow in general... the safest bet in investing especially in foreign market is via local Unit Trust ( but invested in foreign market ). Since I'm with CIMB Wealth Advisor... my suggestion is the CIMB Greater China Equity Fund..
As the name imply... Unit Trust ( also known as Mutual Fund ) is really about managing your risk. Millions ( even billions ) of ringgit from thousands of investor is kept in trust... Trustee ensure the money is invested per regulation.. And professional fund managers invested the money by applying asset allocation and diversification..
In general when U buy equity fund - which is in essence stock.. When stock market go down,the Unit Trust NAV ( net asset value ) will also go down..
When it is down - there's opportunity for dollar cost averaging..
As you buy more UT when the NAV is low... as the NAV increases - U will gain the benefit.. That is how UT can give you between 40% - 80% return in 5 - 7 years !!
Do contact me if you are keen o buy now... Jus buy cash ! EPF cannot use for foreign market UT. I'll show you how U can make money wisely and smartly..
IMHO - Dollar cost averaging isn't the best approach. A combination of Dollar Cost Averaging & Value Cost Averaging provides the best bang for the buck. Of course, if you just want to go the lazy and blur way (main tabur), DCA is as good as lump sum in the long run.
Before any agents shoots his/her mouth off, please do a simulation using Excel with RANDOM numbers for price movements of NAV and simulate DCA vs VCA vs combination approach first. I've done it several times over - simulating 45%/55%/65% probability of up market - more than 90% of the time (press lar F9 for recalculation) the combination model beats the other two. Whenever the combination "loses", it loses to VCA, not DCA approach.
Don't believe everything you read in the SALES manual - think, simulate, test, prove
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