Type of Unit Trust Funds

Hi all, I found this article on The Star Online written by Ooi Kok Hwa entitled 'Tips on how to choose unit trust funds' and I thought this is pretty good for those who are seeking information about unit trust especially on type of funds unit trusts offer. Sit back and enjoy your reading!

UNIT trust funds offer an attractive alternative to retail investors, especially those looking for the benefit of diversification with a small pool of capital while enjoying the possibility of earning higher returns compared with conventional savings.

However, a lot of people have the misconception that the diversification nature of these funds means that the risk of investing in unit trust is low and they can just close their eyes and simply pick any of the funds that come along.

This misconception has led to many paying high prices in learning that as in any type of investments, investing in unit trust funds requires some basic understanding and research before we commit our hard earned money to it.

In general, we can classify the unit trust funds in the market into two major categories: income funds and growth funds.

·Income funds usually are characterised as providing consistent income to the investors. These funds invest in income-producing stocks or bonds or a combination of both. Bond funds, equity income funds and money market funds are included in this category.

·Growth funds generally are more aggressive than income funds but have the possibility of earning higher returns by focusing on the objective of long-term capital appreciation rather than income producing or short-term gain. Examples of growth funds are small-cap funds, commodity funds, index funds and gold funds.

Before we start evaluating the funds to invest in, there are two main considerations which are our investment objectives and risk tolerance level.

Every investor invests for his own purpose. If you are investing for your retirement and are already close to retirement age, you should look for income funds that are more predictable.

However, if you are still young and want to save for your children’s higher education, which will be 10 or 15 more years, you may want to look for growth funds that generate higher return but with higher level of risk.

Once we are clear on what we are looking for in the investment, we can narrow down our selection to either income or growth category and move to the next step of identifying the most suitable funds within the selected category.

Here are a few key factors to look into when evaluating unit trust funds:

·Investment strategy, policy and holdings: Every fund has its own investment profile. Investors should have a clear understanding of the investment strategy taken in each fund that they are considering to ensure it is consistent with their personal investment objective and risk tolerance level.

Even the funds within the same category may have significant differences in risk exposure due to the difference in the investment holdings.

For example, the risk exposure in large-cap growth companies is definitely much lower than for penny stock funds.

·Past performance: Investors may look into the past performance trend of the fund to gauge its future performance.

However, do bear in mind that good past performance may not be repeated in the future and we should not be overly excited to see one year of good results if the fund is only newly established.

A good fund should be the one that has been consistently out-performing its peers, be it during good or bad times.

·Cost: Investors must be aware that when they buy or sell the funds, there are fees and expenses embedded in every transaction.

For example, the expense ratio of a small fund tends to be higher than a large fund while a regional or global fund usually will carry higher costs compared with a domestic fund.

·Fund management: The fund management is very important to ensure continuity and consistent performance.

If a fund changes management too frequently, it will be very difficult for us to gauge the performance of the fund as different managers will have different styles which may affect the performance of the fund.

For example, if the manager tends to have higher portfolio turnover, then the expense ratio of the fund may increase even though the nature of the fund holdings remains the same.

By having good understanding of the above factors, we may be able to make meaningful comparisons among funds that we are interested in to identify the ones that suit us most.

Let your money make more money - Part II

Why choose Unit Trust?

Very simple, it is undeniably profitable. Averagely, Unit Trust offers the clients higher percentage of interest which could go up to 17%. The highest return CIMB Unit Trust (Syariah Compliance) has achieved so far was 49.52% through one of its famous funds DALI 1. Amazing, isn’t it?

Believe it or not, many people like to invest their money in ASB which they claim offers 8% certain interest. I would say NO, you guys are completely wrong. If you are a new investor, you wouldn’t get such 8% return unless you’ve been saving for few years and never withdraw a penny from your account then yes you are entitled to the 8%. As a matter of fact, in the year 2008, the inflation rate was surprisingly reached 7.7%. WOW. If you’re concern with the economy, you’ll know how massive the figure is. So those who have been saving money in ASB in 2008, you are actually gaining nothing but a net loss in term of your money value and time.

Another thing, most of us I’m sure are having an EPF account. EPF is such a waste of time. You’re actually being forced to save your money in an account which has a very low return (4.75%) profit. Frankly speaking, I’m not really into this EPF thingy except that the company also contribute fairly huge amount of money to your account. In fact, EPF itself invest the money with unit trust. That’s how they generate more money and yet, where are all the money gone? Hmm, interesting right?

Saving account (1-2%), Fixed deposit (4-5%), Tabung Haji (5-6%) provide investors very low return; so why wasting your money and time investing in such places while there is another opportunity to attain higher return profit. Start invest with CIMB Unit Trust now. Remember, smart people make smart choices. And the choice is in your hands. 

For more information, kindly contact me via e-mail or buzz me anytime you see me online. Start thinking for a bright future. Later.

Let your money make more money - Part I

What is Unit Trust?

“A unit trust fund is a collective investment scheme, which pools the savings of investors with similar investment objectives in a special "trust" fund managed by professional fund managers. The pooled monies in the unit trust fund will then be invested in a diversified portfolio of securities and other assets in accordance with the unit trust fund's investment objectives and as permitted under the Securities Commission's (SC) Guidelines on Unit Trust Funds. 

The investment scheme of a unit trust fund can be illustrated as a tripartite relationship between the manager, the trustee and the unitholders. The manager is responsible for the management and operations of the unit trust fund whilst the trustee holds all the assets of the unit trust fund. The obligations and rights of each of the three parties are specified in the Deed, (a legal document entered into between the manager and the trustee, and registered with the SC). The Deed regulates the duties and responsibilities of the manager and the trustee with regard to the operations of the trust fund and protects the unitholders' interests.”

Okay, pretty long definition huh, but I hope you guys got the idea right there. Unit trust is a smart place to invest your money and the title of this entry explains the money making process. So, why wait until the rich get richer. Start invest now. How? Don't worry, I'm gonna show you the path. For more information, feel free to contact me.

Reference: CIMB Wealth Advisor 

The Magic Bottle

On the previous entry, I only mentioned the core product, RESVIVA and its benefit. Besides, the company also promotes several other healthful products. And my personal favorite is ALKALARK, a portable water container that could ionize the water pH to be alkaline. 

Believe it or not, we always drink acidic water. Even RO (reverse osmosis) water is still acidic. Carbonate drink-hmm…nothing healthy about it, even 100 Plus, they just promote energy drink propaganda. Energy comes from excessive sugar contained in the drink; the isotonic thingy might be right though (well, I’m not sure, need to perform some researches).  These kinda drinks are still bad for your health. Need extra energy, it’s simple. Ever watched what professional tennis players do during their matches? They eat banana to keep up their stamina and provide extra energy. For some reason, banana has very simple carbs which is very easy o be consumed. 

Common carbonate drinks have pH of 2.0++ which is very acidic. You can clean your toilet bowls with that kind of acid…lol. Actually, our body works well with a little bit alkaline water with pH around 7.3 or 7.4. That will improve blood flow and consequently enhance blood circulation and reduce the risk of getting diseases. So, to keep our body healty, at least we gotta take mineral water (pH 7). Frankly, I just found out that only blue cap bottle is mineral water; others are RO or something else. 

Ok, back to the product. It contains several stuffs which I never knew what they were. It's gonna be along ride here, so bear with me.

MAHA-Q stones – Contain minerals like calcium and potassium that are needed by our bodies and help to produce alkaline water.

PHLOGOPITE CERAMIC BALL - Helps to produce softer and tastier water.

SILVER CERAMIC BALL - Contains antibacterial and purifying function of water.

TOURMALINE CERAMIC BALL - Ionize water molecule, transforms the water molecule into negative ions converting the water into mild alkaline water and improves the tastes of water through surface activation and causes comfortable digestion because of small water clusters.

MAGNESIUM ALLOY – Helps to activate vital organ such as brain, heart, liver and kidney to produce energy.

ACTIVE CARBON CERAMIC BALL – Softens the water by absorbing and removing impurities.

RED CLAY CERAMIC BALL – Radiates far infrared rays and contains diverse mineral matter and living microorganisms to dissolve organic matter n the body.

Okay, done with the compositions. Now, what the heck does this product can do? Here are abstracts from the book written by Dr. Hyun-Won Kim, Water of Life, a cure for our body.

"Alkaline reduced water cleans the blood.
A solution for chronic constipation.
Removes offensive odor of stool.
A solution for high & low blood pressure.
Curing adults diseases, including obesity.
A solution for osteoporosis problems.
With a glass of Alkaline Water, you can get rid of fatigue from your food coma.
The best drinking water after physical exercise.
A solution of oxygen free radicals and atopic dermatitis.
A solution of toxemias of pregnancy.
Alkaline Water keeps the fetus grow healthily."

 

So, it’s your call ladies and gentlemen. Wanna choose a healthy lifestyle? Just go for it guys. I’m just showing the path, you’re the one who’s gotta do the walk. Again, do not hesitate to contact me via e-mails next to my pic up there. Adios.

The Starter

Recently, I joined a quite brand new MLM company named Unify. What attracts me to sign up was not the business; well of course it is quite appealing with the bonus and stuff but the main thing is because of the core product namely RESVIVA. Brilliant merchandise I suppose. 

Ok, here’s the story. I went to the company office few weeks ago and I did the blood test before applying the cream on my bodies and the cute nutritionist showed my blood cells on the screen and guess what, there were black particles in my blood. I was like…dang! According to the nutritionist, the cause might be from smoking (which I’m not!), constant medicine intake or hyper tension. I thought mine would be the second one since I had this long term cough. Then Nick (The Boss) applied the lotion to my hands and shoulders. 

30 minutes later, I did the blood test again and VOILA, the particles were gone. Amazing how it works, the cream which equipped with nanoliposom technology absorb faster into the skin and go through the bloodstream and help poor blood cells characteristic to improve.

Now, knowing how powerful the product is, I sincerely recommend this to anybody who wanna choose to stay healthy. As a member, I would like to promote this core product as the starter of this biz-blogging.

Kindly browse this WEBSITE for more infos. Interested to buy? Do not hesitate to contact me. We can talk and see how it goes. There is also business opportunity for those who like to get extra cash. I'll be more than happy to assist you guys and discuss about it if you're interested.  Let me know. Later.

First Thing

This blog is created for business purposes. The admin will use this blog to do business or to discuss anything related. This is just another way to create network and expand prospect market Everybody is welcomed to view this blog, comment on posts and please, feel free to shout few words as you drop by. Your time is fully appreciated. Thank you.

The Admin