It is important for an unit trust consultant like me to let my investors understand some of the risks that you may faced before investing. However, I can introduce funds that are suitable for you according to your risk profile, so that you can have better planning for your financial situation. Basically, funds with higher return are always embedded with higher risks; funds with lower return are mostly embedded with lower risks.
Below are the risks of investing in unit trusts:
Investment risk – e.g. market volatility, movement in stock market for equity funds.
Returns are not guaranteed – past performance of a unit trust fund is not a guarantee/ indication of future performance. However, it can be a good reference for you to analyze the performance of the fund.
Risk of non-compliance – risk that specifically occurs when a Syariah-compliant security is reclassified as a Syariah-non Compliant Security.
Managers/ management risk – risk that manager may not adhere to the investment mandate of the respective fund.
Risk of unit trust company unable to meet unitholder’s demand to repurchase units – for example, where investment markets are in turmoil and closed.
Risk of changes in legislation – e.g. taxation law that could adversely affect investor.
Risk of changes to unit trust fees and investment policy.
Risk of senior management of unit trust company will change – good investment personnel are short in supply.
Loan/ borrowing/ financial risks
Currency risk – where a % of the value of a fund is invested in foreign currency or assets denominated in foreign currency, the fund may be exposed to currency fluctuation risks.
Country risks – overseas investment of the fund may be affected by changes in the political and economic conditions of the country in which the investments are made. Such political and economic conditions of the country may influence the growth and development of business enterprises and impact the stock prices of listed companies.
Market risk – stock value fluctuate in response to the activities of individual companies, and general market or economic conditions.
Liquidity risk – defined as the ease with which a security can be sold at or near its fair value depending on the values traded on the market.
Credit/ default risk – specific risk in investment in bonds. It refers to an issuers’ ability to make timely payments of interest and principle.
Inflation risk – the risk of high inflation which affect the real return from investment.
Interest rate risk – generally, bond fund prices move in the opposite direction of interest rates. If interest rates rise and bond prices fall, this will lower the value of investment.
So, you may say, "Wow, 16 risks! So risky, why should I go for that?" Before you get any answer from me, ask yourself also, why so many people still invest in unit trusts? Yes, every investment is carrying some risks, no matter you invest in stock market, or properties. For zero risk investment, you can put your money in fix deposit or EPF; this is not investment but saving, and your money is depreciate in value due to inflation.
Unit trusts investment risks can be minimized through proper advice and management of unit trust consultant who has undergo proper training.
Of cause, I have some effective methods that can help you to gain maximum profits from unit trusts investment while minimize your risks. So, if you want to learn the way, just make an appointment with me through my email jtankoksiong1982@hotmail.com
2011年8月13日星期六
Not every people with EPF savings can invest in EPF approved Public Mutual Funds. There are three basic requirements that you must fulfill.
Your EPF account 1 must have more money than your EPF basic savings according to your age.
Only 20% of your excessive EPF savings can be transferred for investment.
Minimum investment amount must be RM1000.
Example:
Investor age: 29
Scenario 1:
Investor EPF account 1 saving: RM10,000
Can he invest? No!
Why? The EPF basic saving is less than RM16,000 (refer here)
Scenario 2:
Investor EPF account 1 saving: RM20,000
Requirement 1 is fulfilled.
Only 20% of the excess saving can be used for investment.
RM20,000 – RM16,000 = RM4,000
RM4,000 x 20% = RM800
Can he invest? No!
Why? Minimum investment amount is less than RM1,000.
Scenario 3:
Investor EPF account 1 saving: RM22,000
Only 20% of the excess saving can be used for investment.
RM22,000 – RM16,000 = RM6,000
RM6,000 x 20% = RM1,200
Can he invest? YES!
In order to fulfill all the three basic requirements, I have modified the EPF basic saving table for easier reference:
Age (Years) Basic Savings (RM)
18 6,000
19 7,000
20 8,000
21 9,000
22 10,000
23 12,000
24 13,000
25 14,000
26 16,000
27 17,000
28 19,000
29 21,000
30 23,000
31 25,000
32 27,000
33 29,000
34 31,000
35 34,000
36 37,000
37 39,000
38 42,000
39 46,000
40 49,000
41 53,000
42 56,000
43 61,000
44 64,000
45 69,000
46 73,000
47 78,000
48 83,000
49 89,000
50 95,000
51 101,000
52 107,000
53 114,000
54 121,000
55 125,000
If your EPF account 1 has the basic saving same or more than the above mentioned, you can invest in any EPF approved Public Mutual Fund for sure. For further explanation, please contact me at jtankoksiong1982@hotmail.com
Your EPF account 1 must have more money than your EPF basic savings according to your age.
Only 20% of your excessive EPF savings can be transferred for investment.
Minimum investment amount must be RM1000.
Example:
Investor age: 29
Scenario 1:
Investor EPF account 1 saving: RM10,000
Can he invest? No!
Why? The EPF basic saving is less than RM16,000 (refer here)
Scenario 2:
Investor EPF account 1 saving: RM20,000
Requirement 1 is fulfilled.
Only 20% of the excess saving can be used for investment.
RM20,000 – RM16,000 = RM4,000
RM4,000 x 20% = RM800
Can he invest? No!
Why? Minimum investment amount is less than RM1,000.
Scenario 3:
Investor EPF account 1 saving: RM22,000
Only 20% of the excess saving can be used for investment.
RM22,000 – RM16,000 = RM6,000
RM6,000 x 20% = RM1,200
Can he invest? YES!
In order to fulfill all the three basic requirements, I have modified the EPF basic saving table for easier reference:
Age (Years) Basic Savings (RM)
18 6,000
19 7,000
20 8,000
21 9,000
22 10,000
23 12,000
24 13,000
25 14,000
26 16,000
27 17,000
28 19,000
29 21,000
30 23,000
31 25,000
32 27,000
33 29,000
34 31,000
35 34,000
36 37,000
37 39,000
38 42,000
39 46,000
40 49,000
41 53,000
42 56,000
43 61,000
44 64,000
45 69,000
46 73,000
47 78,000
48 83,000
49 89,000
50 95,000
51 101,000
52 107,000
53 114,000
54 121,000
55 125,000
If your EPF account 1 has the basic saving same or more than the above mentioned, you can invest in any EPF approved Public Mutual Fund for sure. For further explanation, please contact me at jtankoksiong1982@hotmail.com
Best Mutual Fund Reopen but Close Soon
What is the best unit trust, or mutual fund to invest? Why it is the best? Because of its returns?
Nobody can give you an accurate answer for the best performance unit trust in future. But I do know and monitor and wait a fund for quite few years, which I think is the best among all the mutual funds. I may not know how will be the returns in future, but I know how good it had performed in the past 10 years. 428% of returns in 10 years!! An average of over 40% returns each year!
This is the mutual fund with overwhelmed demand, and too many investors jump into it until it sold out. That's why I waited for years, hoping that it will reopen or increase its fund size. Yes, luckily, it reopens recently. But unluckily, it will be closed again by 5th May 2011!
If you are one of the consultants, I believe that you know which is the fund that I refer to. If you are a new investor, try to check this out with Public Mutual consultant so that you won't lost this golden opportunity of investment. After it closes again, nobody know when will it reopen next time.
Which is the fund actually? I'll let your Public Mutual consultant to give you the answer.
My answer is PSxxxxCAP. The answer is quite clear already, right?
Other tips for the answer:
1. It can only be invested by cash (minimum RM1000), no EPF transfer is allowed
2. Cannot switch in
3. Can do monthly investment
(There are a lot of benefits by doing monthly investment)
So hurry, get the true answer and make your investment before it is too late!
If you need my helps, you can always email me at jtankoksiong1982@hotmail.com
Nobody can give you an accurate answer for the best performance unit trust in future. But I do know and monitor and wait a fund for quite few years, which I think is the best among all the mutual funds. I may not know how will be the returns in future, but I know how good it had performed in the past 10 years. 428% of returns in 10 years!! An average of over 40% returns each year!
This is the mutual fund with overwhelmed demand, and too many investors jump into it until it sold out. That's why I waited for years, hoping that it will reopen or increase its fund size. Yes, luckily, it reopens recently. But unluckily, it will be closed again by 5th May 2011!
If you are one of the consultants, I believe that you know which is the fund that I refer to. If you are a new investor, try to check this out with Public Mutual consultant so that you won't lost this golden opportunity of investment. After it closes again, nobody know when will it reopen next time.
Which is the fund actually? I'll let your Public Mutual consultant to give you the answer.
My answer is PSxxxxCAP. The answer is quite clear already, right?
Other tips for the answer:
1. It can only be invested by cash (minimum RM1000), no EPF transfer is allowed
2. Cannot switch in
3. Can do monthly investment
(There are a lot of benefits by doing monthly investment)
So hurry, get the true answer and make your investment before it is too late!
If you need my helps, you can always email me at jtankoksiong1982@hotmail.com
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