Invest Early To Achieve Financial Success

Brian Tracy once said, “At least eighty percent of millionaires are self-made. That is, they started with nothing but ambition and energy, the same way most of us start.” If you are young and wish to see your cash grow over time at a rate exceeding 5%, putting your EPF saving in well managed unit trust is a wise option. If you put RM30,000 of your EPF saving in a Public Mutual Berhad index unit trust fund and achieved a long-term average return of 23% each year for 10 years and 20 years, your investment will have grown to RM292,467 and RM2,318,081 respectively. It pays to invest early. Take advantage of Dollar Cost Averaging especially in the current stock market scenario as it provide an opportunity to accumulate more units. “The philosophy of the rich versus the poor is this: The rich invest their money and spend what is left; the poor spend their money and invest what is left.” Jim Rohn.

Invest Your EPF In Unit Trust

We believe that EPF is an investment fund that will take care of our retirement financial needs. In 2006, EPF declared 5.15% and in 2007, it is about 5.5%. With the current scenario, do you think that the return of about 5% is adequate to take care of all our financial goals on our retirement?. My answer to this is definitely no. Why? The answer is INFLATION. Before the hike in petrol price, the retail price of a 10kg dragon rice was RM30.00, now RM39.00, an increased of 30%; dressed chicken was RM6 per kg, now RM8 per kg. Petrol was RM1.92 but now RM2.70, increased of 40%. My question; is the return from EPF of 5% adequate to cover the inflation rate of say between 10% - 30%? It is wise therefore to put EPF savings in well-managed unit trust. Public Mutual Berhad has numerous funds to invest in. However be selective on the fund you want to invest in and get good advice before you withdraw your EPF. Based on the recent prospectus, some of the funds gave an average return of 20%. You can withdraw 20% from your EPF Account 1 of the excess above certain ceiling depending on your age. Subsequent withdrawal can be done every after 3 months interval.

Rule 72

Rule 72 is a simple way to calculate the number of years it takes to double the amount of capital invested.

Example:

If you invest RM10,000 at an interest rate of return of 10%, it takes roughly 7.2 years for the capital invested to double to RM20,000.00. Calculated as : 72/ interest rate (10%). Try using you calculator and multiply RM10,000 by 1.10 for 7 times. The answer is RM19,487.17.

Happy investing.

Benefits Of Investing In Unit Trust

Unit trust is an investment vehicle that pools the financial resources of many individual investors who aim to achieve similar investment objectives. There are many benefits investing in unit trust. Firstly, the risk is minimized since the funds are invested in diversified portfolios. We all learned that diversification reduced risk. Secondly the funds are managed by professional who has the expertise and experience. As individual, we do not have the time, experience and the expertise to study the stock markets and we may make wrong investment decision. With as little as RM1,000.00 you can start investing. The investment can be turned into cash at any time if your need arise. Unit trust provides a very competitive return in the form of dividend distribution and capital gain. Dividend distribution may be given every year while capital gain is realized when you sell at a price higher than your purchase price.

My Experience In Unit Trust Investment

Investing In Unit Trust I am writing to share with you about investing in unit trust specifically in Public Mutual Berhad which can give higher return or yield than EPF, Fixed deposit and even ASB. In early 2006, I invested through EPF in a fund called Public Regional Sector Fund. I sold it in mid 2007 when the KLSE was 1,500 points and I made a return of 41%. My other funds ( three of them ) which I bought earlier also give me a return of average 20% per annum. After realized how much I benefited from investing in the right unit trust, I signed up as a consultant. I want to be serious in this business because firstly I can help myself and secondly investment in stocks and shares is my passion. For those who have never heard of unit trust, it is fair for me to give a little information about it. Unit trust is an investment vehicle that pools the financial resources of many individual investors who aim to achieve similar investment objectives. There are plenty of advantages investing in unit trust such as: It is affordable; low initial investment of RM1,000. Managed by experienced professionals Risk is minimized through diversification. It can turn into cash easily. High return through dividend distribution and capital appreciation. Recently in the Star, EPF deputy chief executive officer, Encik Johari Abdul Muid said that it is during economic downturn that investing in unit trust is encouraged to benefit in the upswing later. Yes, actually this is the best time to invest. I have done a comparison on the performance of the various funds under Public Mutual Berhad and I can confidently conclude that the returns from some of them are much higher than the return from ASB. Investing in the right fund and with the right timing can give a return of between 20 – 50%. Investing in unit trust can either be by direct cash purchase or through withdrawal from EPF Account 1 ( subject to certain limit depending on your age ). Choosing your agent is very important because he should be able to monitor your fund performance and advise you accordingly. Rather than leaving your money in EPF or ASB earning only about 5% and 9% respectively, it is better to invest in unit trust with Public Mutual Berhad. Peter Lynch once said, “The mutual fund is a wonderful invention for people who have neither the time nor the inclination to test their wits against the stock market, as well as for people with small amount of money to invest who seek diversification.” In case you are interested to invest, please call me at 013-3595414 for discussion.

Wellcome to my unit trust blog

Hello There Wellcome to my unit trust blog where you will get my best advice on investing in unit trust in Malaysia. Hear more from me later.