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A useful info on investing in Unit Trust!

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nadia.g Female
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  #11 Old 17-06-2008 Default

ASB tat gud issit? I stil dun get how ASB works. sob sob
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  #12 Old 17-06-2008 Default

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ASB tat gud issit? I stil dun get how ASB works. sob sob
Try to ask around or do your own research on the interest rate given by ASB and other financial institutions. Then compare them (see which one is reliable/riskier) and make calculation which will benefit you in the long run.
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  #13 Old 17-06-2008 Default

Yup thanks nways. I jus checked the net, i never knew there was ASB i tot there r only ASN..etc.

Im going to ASNB agent to get further imformation n will compare with other unit trust funds. I really hope ill be slightly loaded after investing in unit trust. hehe lol
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  #14 Old 17-06-2008 Default

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Originally Posted by nadia.g View Post
Yup thanks nways. I jus checked the net, i never knew there was ASB i tot there r only ASN..etc.

Im going to ASNB agent to get further imformation n will compare with other unit trust funds. I really hope ill be slightly loaded after investing in unit trust. hehe lol

lol. Yeah u shud. all the best in investing. but ur money will grow after some time which kinda take a while. depends on the yearly revenues. so dun expect to invest say 500 and have 3500 at the end of the year. in the beginning it will increase in pretty small amounts but as you invest more and more in your ASB accounts u'll notice the long term benefits. The more you invest u can see a larger increase. lol. I recommend you to go to CIMB for more infos.
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Leen
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  #15 Old 27-06-2008 Default

I want to have a say here!

The thing about ASN and other stuff, they give you about 6% dividend annually. For unit trust, you can get any amount of dividend depending on the market and how well the unit trust is going. So in good years, you might even get like 8% and more. So for some people who like risk, they will go for mutual fund hoping to get that 8%.

Also, no matter which one that you choose, to really utilize your money, you should just let it there and let it compound. Compounding is a strong tool if you have not known about that.

One more thing, if you do decide to invest in unit trust, you might be confused with some of the words.

Index Fund means the person will just buy everything within a certain constraint. An example will be going to a supermarket and buy 2 of every brands available and hope that the price of those brands go up.

Aggressive Fund should mean (I suppose) that the investors pick carefully which to buy and which not to buy. And the investors do it OFTEN. It's like going to supermarket and look through all the brands and pick 5 that you think will be the best and stick to them. Tomorrow, you come back and choose another 9 that you think will rise in value the next day. And so on.

Bond works slightly differently from normal unit trust. You can even see that from the price of it. Usually, the fund has price like 0.23425 or 0.435953, but bond always have 1.32945 or 1.0324. It is priced differently and it is the less risky thing to invest in. I can't remember the exact meaning of bond (it's something like the government's debt).

Oh well, I'm not an expert so I really can't offer too much information here. Sorry.
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  #16 Old 27-06-2008 Default

Leen is generally accurate since I aren't too sure about those to make any statement. There certainly are many types of funds, each exposed to different types of risks. Market risks, currency risks and credit risks just to name a few. I can't recall all, but do get a prospectus and go through before deciding which portfolio you intend to invest in. Besides, get some idea about the basics on the transaction rules before approaching your agent so that you wouldn't be in the dark about what he/she says.

Btw, bonds are debts issued by government or corporations as a method to raise fund besides stocks. Bond issuers are the borrowers and bond holders are lenders.
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  #17 Old 27-06-2008 Default

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I want to have a say here!
Index Fund means the person will just buy everything within a certain constraint. An example will be going to a supermarket and buy 2 of every brands available and hope that the price of those brands go up.
Do you know any reliable index fund unit in Msia?
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  #18 Old 27-06-2008 Default

For Bond fund, it has lower initial entry fee, lower risk and lower growth potential. It does not directly affected by stock market, but still would be influenced by other factors like bank interest.

For Stock/Equity (aggressive) fund, it has high entry fee, high risk but higher growth potential as well. Like Index tracker fund, stock fund is very likely to be affected by stock market's performance. FYI, several studies have shown that stock fund could usually outperform index fund in term of their growth potential.

To invest in an appropriate trust fund needs skill. One of the skill would be your switching "ability". Switch stock fund to bond fund when market is unstable and full of uncertainties (like now, due to poilitical uncertainty), and switch back from bond fund to equity fund after stock market becomes stable and back to the right track again. ( switching cost isn't much if i'm not mistaken )
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  #19 Old 28-06-2008 Default

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Do you know any reliable index fund unit in Msia?
I don't know about that. Probably the Public Mutual ones?

A lot of economics seem to agree that it doesn't make much difference whether you buy everything or you pick and choose carefully. My econ prof once quoted someone, "I invest not to beat the market, I invest to beat the inflation." haha. Probably you can learn something from that. Very few actually pick and choose correctly. That's why if you don't know what to buy (say stock markets), just throw some darts and buy those that you shot at. Chances are, you are not going to get too far from someone who tries hard to pick and choose carefully.
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  #20 Old 28-06-2008 Default

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Originally Posted by Al-Bert View Post
For Stock/Equity (aggressive) fund, it has high entry fee, high risk but higher growth potential as well. Like Index tracker fund, stock fund is very likely to be affected by stock market's performance. FYI, several studies have shown that stock fund could usually outperform index fund in term of their growth potential.
I'm not sure if you have ever come across this book called 'The little book of Common Sense Investing'. This book shows a lot of proof that index fund fetch higher profit in long run compared to other fund ie. mutual fund etc.

The author of the book, John C. Bogle is a founder and former CEO of the Vanguard Mutual Fund Group.
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