imDavidLee Dot Com | Mr. Money’s Blog

Important To Choose Investment Style

Knowing what is your investment style are will help you to choose investment type more accurately. There are really only 3 specific investment styles, which can be conservative, moderate, and aggressive.

Naturally, if you found yourself have a low risk tolerance, then your investment style will most likely to be conservative or moderate. In contrary, if you have a high risk tolerance, you will most likely to be an aggressive investor. Meanwhile, your financial goals will also determine your investment style.

Conservative investor want to maintain their capital in their investment. This type of investor usually invests in common stocks, bonds, unit trust and interest earning savings account. Thus, they are more likely on early retirement. I am one of the conservative investor and have an unexpected huge amount of money put into Bank Fixed Deposit. This is just for preparation or cash flow at best.

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Buying Gold As Investment

Based on the forecast on long-term investment, the gold value will be getting higher. But it might turn another way round. Someone bought 7 years ago at MYR 39/gram but now more than MYR 95/gram.

If you look at the relationship between USD and Gold Price, it goes in opposite direction. As long as USD keeps dropping, the gold price will continue to rise. So if USD goes up in the future, the Gold Price will drop. Obviously, there is a currency risk. Nowadays, gold price very hard to predict since it’s going up and down as crazy as stock market.

Gold investment is always regarded as the best possible hedge against inflation but 1 distinct disadvantage is you don’t earn any interest from it.

Where Can Invest?

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Tiger Bank Sucks Blood ?

Didn’t you know that after the 4th ATM withdrawal, for each withdrawal you’ll be charged MYR 0.50? So, it is better to purposely withdraw bigger amounts that can last you for a week. Save the money in saving account will not help you to get higher interest. It is just 0.2-0.3% annually. Besides that, it can also lessen your waiting time and spending time to the branch/ATM.

Why Maybank Like To Charge People ?
I think the purpose for banks to charge another MYR 0.50 after 4th withdrawal was prevent Maybank’s user misuse ATM machine and this may save their server resources. Imagine if all user withdraw RM10 from ATM machines daily, then huge of databases need to be backed up daily, heavy traffic load which may lead to system failures.

Maybank2u
If we transfer money from maybank2u to other maybank account it’s free of charge. But if transfer to other bank (citibank, hong leong bank etc) they will charge you RM2 per transaction.

If you use Maybank ATM to top up your Touch N Go, then you also need to pay additional MYR 0.50.

You can choose to have the MYR 8 annual fee instead. Then you can enjoy unlimited ATM withdrawals and counter transaction.

Don’t Get Confused With Bank FD Calculation

Here, I won’t share with you about shares and mutual fund because those are more for investing while FD is strictly for savings purposes. But, how do we count the total gain from fixed deposit for a year?

Lets say you put 10k FD for 1 year at 3.70%(p.a) which is regulated by central bank. Then at the end of the year you can get $10370.

** Take note that if you withdraw before the maturity date, you won’t get the full interest.

If monthly basis (1 month) with 3.0% interest rate, then you’ll get $300 divided by 12 months. If you add up the interest into your FD automatically, the next calculation will be based on your total FD. So, you can enjoy more as the powerful of compounding interest.

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Country Heights Grower Scheme

It is an opportunity for the Investor to participate in the oil palm in Malaysia since Malaysia produces the best oil palm so far, and oil palm is a consumable product to the world population because it’s not expensive and it’s naturally very safe to use.

Through this kind of investment:

- 1 plot is equivalent to RM 5,500. The minimum investment is 1 plot (1/4 acre).

- The projected annual return is range from 11% to 15% on the 4th year onwards. However, during the first 3 years, investors will be getting a fixed annual return of 8% per year.

- After the 23rd years of tenure period, investors might only obtain capital appreciation if there have buyback from Management Company or other buyer with a good price.

- Investor will not own the land because they are actually owning the trust. However, it is held by the Trustee. Investors basically are tight for 23 years period unless another person willing to take up the trust or buying from them.

From my understanding and analysis, there may have some risk:

Stumble it!

CIMB Clicks eFD Another New Online FD

I’ve noticed that CIMB Clicks has a new feature called eFixed Deposit. It seems that it allows you to open a FD account through online.

But do you all know the difference between its and Maybank eFD feature?

It’s quite similar to Maybank eFD. The only difference that I found is:

1. Auto renewal upon maturity date.

2. Cannot uplift on the maturity date. (I’m not sure about it actually because somebody said that you can do it but just lost interest)

3. No TAC required.

You can do eFD at ATM also but personally suggest that doing it online will be more comfortable with only the condition that you need to have at least 1 banking account that is linked to an ATM card in order to access Internet banking services.

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Why fund company keep on introducing new funds?

I just bought PCSF (Public China Select Fund) priced 0.21, which is launched middle of 2007. From the historical analysis, I found that it performs quite well and growth potentially to 0.29. So, It has quite a track record previously. Now, it’s a right time for me to invest since now is the market downtime.

Overall, PCSF is the best performing regional fund at the moment, and more upside as Olympics is near.

Personal suggestion is you can load more into PCSF, since the typhoon is over now.

I believe PCSF is just in its infancy; a higher jump should come closer to the Olympics.

What’s better is that PCSF might be able to pay a high dividend at end of the year before Olympic.

Why fund company keep on introducing new funds?

I know, there’re the obvious reasons and how about the less obvious ones?

Have you guys ever thought about a fund company doing intra-trade, intra-transfer among their funds?

It’s a huge scheme actually and outsiders may not see it properly and obviously. New funds are introduced to keep investors interested. With the ever growing opportunities, fund managers have to get in the new funds to suit for the situation. It’s also a way to keep the funds recycled, while keeping costs low to target on new investors.

Normally, the new fund price would be low in order to get investors’ interest. While new funds are released, the charges are discounted during the promotion period.

In addition, when the fund managers see their existing funds are doing great, they’ll launch a fund that mimics it. Mostly the new fund with new strategies will be launched. Just like people saw oil price keep on shooting up then UT company will come out some sort of fund that invest in oil or oil company etc.

Difference Between Old Fund Vs New Fund

Some people like to invest old fund since they can see the track record or won any award for consistent performance.

From my perspective, I look at new funds because most of the new funds are investing in the most recent hot portfolio while old funds can’t really change their scope anymore.

Some people feel that the old fund couldn’t rise up fast since it is in stable period or nearly hit highest peak. For me, old fund doesn’t mean it won’t go up, performance wise all depend on their portfolio aka stocks they are holding.

New funds or Old funds actually are the same. Just new funds NAV is lower.

Maybank Structured Islamic Deposit

I just came across this advert in thestar page.
Anyone got comments about this? Seems meet my objective of 10% gain per year

Structured Islamic Deposit ( STRIDE-i )
Maybank

Maybank has introduced their new Structured Islamic Deposit (STRIDE-i). It is Maybank’s first Syariah-compliant Capital Protected Structured Deposit.

The Maybank STRIDE-i offers:
- 9.80% guaranteed returns upon maturity
- 100% capital protection with condition of held till maturity
- Investment period of 4 years
- Maximum potential returns of up to 38.80% which subject to the performance

Investment must be in minimum of RM50,000 and multiples of
RM50,000.

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PruLink Investor Account

There are the things that many of us dream to achieve in the future. However, many have found difficulties of those lifetime plans due to financial disabilities.

At 2nd of July, which is the day that I made my big decision, I have cancel the Maybank Takaful since the plan is not suit for me and withdraw FD money(RM4k) + own saving(RM1k) to invest in Prudential Investor Account which is under promotion when I joined its.

You can invest and be protected with PRUlink investor account. It is a single premium investment-linked whole life insurance and for those who prefer one-off investments.

You also have the flexibility to withdraw some of your cash values if you have a sudden need for it, and you can top-up at any time. Your top ups can be from as low as RM1,000.

95% of your premiums will be used to purchase units in the PRUlink fund.

It includes coverage on Death and Total & Permanent Disability (up to age 60). It means that if something bad happens on you then you will get 125% profit. If you invest RM10000 then you will get RM12,500. So your profit will be RM2500. It is good to invest for everyone since it also can give you protection.

It’s one of the best funds if you want to grow your wealth quickly, and are willing to accept a higher degree of risk.

PRUlink fund does not pay any dividend. It focuses on capital growth in unit price. All investment incomes and capital gains are automatically rolled up in unit price.

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500 Million Additional Units for ASM

Amanah Saham Nasional Berhad (ASNB), a wholly-owned subsidiary of Permodalan Nasional Berhad (PNB) is offering 500 million new units of Amanah Saham Malaysia (ASM) to be opened for subscription on Wednesday, 18 July 2007.

The offer will commence concurrently at all ASNB Offices and agents branches at 9.30am nationwide, including Sabah and Sarawak.

To ensure a fair distribution to the investing public, a maximum investment limit of 50,000 units has been set per accountholder during the offer period from July 18, 2007, until 24 July, 2007.

ASM is a fixed price unit trust fund and opened to all Malaysians aged 6 months old and above.
PNB President and Group Chief Executive Tan Sri Dato Hamad Kama Piah Che Othman said the additional units was aimed at new investors who had missed out on the earlier opportunity and existing investors who seek to top up their investments.

In line with the upcoming 50th Merdeka Celebration, PNB would like to present all Malaysians with an opportunity that will allow them to share with the nations prosperity, he said during a press conference in Kuala Lumpur on Friday, 13 July 2007.

ASM was launched on 20 April 2000 with a fund size of 2 billion units which was fully subscribed in 21 days. This is the fourth time that ASM has offered new units for subscription and the response has so far been overwhelming.

Last year 1 billion units of ASM were fully subscribed in less than 2 hours and another 1 billion units were fully subscribed within one day when the new units were opened for subscription in March, 2007.

In the last seven years since its inception, the average annual income distribution declared by ASM is 7.02 sen per unit.

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