The Three Rules Of Investing

There are only three basic elements:

1. Understand what we buy
2. Buy value at a reasonable price
3. Be patient

Make sure you understand what fund you have choosed and what to buy. It is vital to understand your investment - the good, the bad, the risks and the rewards. Fully comprehending the objective of any investment will help you be more comfortable.
Value buying demands both research and discipline. A stock may be judged undervalued for various reasons. If an industry is out of favor, the market value of the stocks within the industry might go lower but, if the fundamentals are still positive, it is an opportunity for the investor to buy selectively as it is still a good value stock.
Patience is a vital ingredient of value investing. It could take several years for the value of your investment to materialize. This waiting period demands both patience and confidence. Most successful investors know it takes time for their investment to double, triple, and so forth. Professional managers generally agree that 5 years is reasonable.

Selecting The Right Unit Trust

It's used to be a simple in selecting a unit trust but which one really fit your objective. Today, there are a multitude of different unit trust funds competing for investment ringgit. Perhaps a simpler way is to first identify your investment objectives. If you want your money to grow a larger sum in the future to pay for an objective and your risk tolerance is higher, you may choose a growth fund to do the job. On the other hand, if you need an ongoing income stream to pay for expenses and your risk tolerance is low, a better choice may be a bond fund. You may have different investment objectives, risk tolerance and time horizons at any one time, which warrants owning a mixture of different unit trust funds for different investment purposes.

Why Should I Invest Today?

Everyday is a good day for investment but do not wait till the last minute. WHY? Today's decision should consider tomorrow's needs. There is a direct relationship between the amount of money you need to accumulate and the number of years you have to do it.

For example:-

Let say, you plan to have a RM 400,000.00 to purchase your own house and you have 10 years to do it. Basically you need 10% for the down-payment which is RM 40,000.00.

You may just start your regular investment; let say start from RM 5,000.00 and monthly RM 300.00 on regular basis. Assume the annual rate of the return of the fund 10%. Over 10 years you already made RM 45,100.00 which is enough for your to make your down-payment.

Time is the real asset for your planning for your future; it can be for your education, child's education or even for your retirement. The more time we have to save, the fewer ringgit we need now. Do not let time slip away. ACT NOW!!!

The Best Way to invest in a Unit Trust

Commonly, there are ways to invest in unit trust:-

A) LUMP-SUM

The minimum lump sum investment in a unit trust is normally RM 1,000. There is no limit on how much you can save and invest in a unit trust. This way method only emphasizing investor to invest for the initial date and can be top-up whenever they want to (not regular basis). Investment using EPF (1st account) also consider as lump-sum method but depend how regular investor investing their fund. Each investor eligible to invest using their EPF for every 3 months EPF as long there is sufficient amount of funds available and follows standards conditions.
Even though,if you are making a very large investment, it is usually advisable to spread your holdings among different funds. Diversify your funds. If you are worried that the stock market could fall back from a peak just as you invest your lump sum, you could consider investing it gradually through a regular savings plan


B) REGULAR SAVING PLAN

This is most popular way chosen by the investors. Regular savings plan allows investors to put in a set amount monthly to the unit trust of their choice. Usually the minimum initial amount is RM 1,000.00 . The investor able to top-up the fund on monthly basis. The minimum monthly additional investments usually start from RM 100.00; there are 2 ways for this top-up which can be done either manually or auto-deduct from bank account (SI).
The regular savings plan is also flexible since they are not tied to a particular period of time. This can enhance the returns from unit trust that performs reasonably well over a long period. An advantage of the regular savings plan is that they even out fluctuations in unit price. The same investment each month will buy more units when the price is lower and fewer when the prices are high. The effect of ringgit cost averaging, as it is called, is to make the overall cost of units slightly cheaper. Of course, another advantage is that you can cash in the whole lot or part of it without penalty on any business day. Regular savings plan can improve returns significantly in the long run.

Maximize your EPF growth

HI everyone,

It is a good news to share that everyone can use EPF (Employees Provident Fund) to start their investment as long the fund is sufficient and follows the rules. Do you know how to maximize your EPF fund beyond saving scheme?

Lets focus on the objective for this investment scheme; which is to enhance members' retirement savings for future financial needs. I believe we are aware that inflation is rising up from time to time and we afraid that our EPF retirements savings might not be enough to support our future needs. According to a research conducted by EPF, almost 80% of the Malaysian will fully spent their EPF money within 3 years after they retired. I'm sure everyone wanted the money to be spent longer than 3 years moreover the living cost rocking up as well.

So, the only solution is to maximize the fund growth by investing in correct fund. Public Mutual has tremendous fund which been showing the proven record benefited the investors. Make a wise move, do not wait till last minute.

Feel free to ask me via e-mail or phone for appointments.

This is the Best Time to Invest

Hi my dear friends,

Do you agree with the title saying that " This is the best time to invest"... Of course, YES!!! Maybe some of you disagree with me; OK let me ask another question: If you wanted to buy a branded shirt or cloths; will you buy during sales or during the peak time? Ahaa... definitely during the sales right.
This is exactly same method applied to investment strategy...buy when the market down and sell when it goes up. Anyway, a detail investigation and significant background check on the fund to be invested certainly needed. Make sure read the policy and the fund's portfolio.
Always ask for the help if there is any doubt; clarify at beginning stage. Since we know most of the market now actually at the down side but it will go up some-how based on the researches that being conducted. Make a right choice to choose a correct fund and invest smartly.

DO YOU KNOW ...WHAT IS A UNIT TRUST?

A unit trust is a financial vehicle through which individuals may invest their money; in other word pools the savings of a number of investors who share a common financial goal. The idea behind unit trust is better investment through collective investing. That is to say that pooling the investments of many investors, individuals and institutions. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them.

Advantages of investing in a unit trust:-

a. Professional management at a very low cost
b. Diversification - DCAP
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, with which most individuals are familiar.
Many individuals deposit money in the banks, for which they receive interest. These individuals expect complete liquidity where they must be able to withdraw their deposits in cash at any time. The banks employ professional managers to look after the deposits. The deposits 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 more productive, 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 managers at a low cost to the individual investors. These managers 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:

a) The trustee - holds the assets of the trusts on behalf of the unit holders.
b) The manager - the promoter of the scheme and provides investment and
administrative expertise and markets units to the public
c)The unitholders - 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.

For more detail; call or mail me at: ryanbaros@gmail.com