Wednesday, April 3, 2013

Effect of General Elections to market price

             
Assalamualaikum.

Today, 03 Apr 2013, marked on the calendar as the dissolution of  Malaysia parliament. And this news has affected stock market significantly. 

Today's situation can be depict on below graph as at 07 Mar 2008. The following day of market trading day, the price drop tremendously and was the lowest in 3months. So we can expect the market trend will be more or less the same whereby the price will go down due to investor's speculation towards General Election. 

Moreover, PRU 13 is said to be 'most important election' ever. So perhaps, potential investor will eyeing on investing at the lowest price (if possible).


With MAAKL Mutual, investing has been made easy with handy tool like MHO. Investor is empowered to monitor their investment daily.

Sunday, March 31, 2013

MAAKL - CM Shariah Flexi Fund


Tuesday, March 19, 2013

Dollar Cost Averaging Technique


" Should you invest for potentially higher returns (by exposing your EPF money to higher risks) or should you just be content with the EPF dividend rate?

Firstly, let’s look at why EPF introduced such a scheme. According to the EPF website, the “EPF Member’s Investment Withdrawal scheme allows you to withdraw part of your savings in Account 1 for investments to increase your retirement fund to support your life after retirement.”
This means that you are given the opportunity to make your EPF money work harder for you.
The second reason is actually the most important. Inflation erodes your purchasing power. Over the last five years, EPF has distributed an average of 5.4% dividend annually while the inflation rate averaged 2.7%.
Thus you should make the best use of the withdrawal scheme allowed by EPF to ensure that you preserve the purchasing power of your EPF money in future.
Thirdly, you should let the power of compounding work for you.
Albert Einstein famously said: “Compound interest is the eighth wonder of the world. He who understands it, earns it.”
Thus you should let some of your EPF money compound at a higher rate of return.
Even a small positive difference in annual return can make a big difference over time. To give you a better idea of the power of compounding, let’s use the Rule of 72.

If your money earns 5% a year, it will double in 14.4 years. If it earns 7% pa, it will double in 10.28 years. For 9% pa return, your money doubles in eight years. If your return is 11% pa, it doubles in 6.55 years. If you earn 13% a year, your money doubles in just 5.54 years. (To calculate the number of years for your money to double, divide 72 by your rate of return.) "



Source: http://thestar.com.my/news/story.asp?file=/2011/9/30/sarawak/9603071&sec=sarawak

Thursday, February 14, 2013

Memilih Skim Persaraan Swasta Yang Tepat

How to tell PRS providers apart

CHOOSING the right pension provider is likely to be one of the most important financial decisions you will have to make. Why? It will determine one of many things - reap the rewards of a well-invested retirement portfolio with a financially secure retirement or spend your retirement years realising that you simply do not have enough money to do any of the things you had hoped for.

This decision has become even more important with the increasing life expectancy and rising living standards of Malaysians. Many Malaysians find that their savings are inadequate to meet their retirement needs and in response to this, Securities Commission Malaysia (SC) has initiated the introduction of a private retirement scheme framework in the country.

Malaysia's Private Retirement Scheme (PRS) is a voluntary retirement savings scheme provided by private-sector fund providers which are licensed and approved by SC. To date, eight PRS providers have been approved, each of which will introduce a range of funds for selection by investors.

So how does one go about choosing which PRS provider to sign up with? To start with, it is crucial that you ensure the PRS provider you choose is one of the eight approved by SC. Four other areas to consider are:

1. Fund Choice

As with any form of investment, you will need to take into account various factors such as your age, personal and household income, risk appetite, goals, investment horizon and your own retirement needs even before deciding what scheme and what kind(s) of fund(s) to invest in. Zeroing in on this from the onset will allow you to choose a fund(s) that best matches your investment needs.

As your needs change through the different stages of your life, it is also important to look out for a PRS provider that has fund choices to cater to your evolving needs, and provides the flexibility to switch funds easily. PRS provides you the option to contribute to one fund or several funds under a PRS scheme offered by the same or different PRS providers. It is advised that you review your PRS portfolio regularly to ensure it matches your retirement goals.

2. Past Performance

The biggest contributing factor to the size of your pension pot when you retire is the performance of the fund(s) you have invested in. As PRS is new, there is no track record for fund performance, however you might find it useful to find out how other funds managed by the respective PRS providers have performed in the past. Remember to judge the performance of these funds in the long-term (at least five to 10 years) as investments can fluctuate in the short-term.

Finding out how the PRS provider and their funds fared during challenging market conditions may also give you an indication of the investment expertise and capabilities of each PRS provider. For example, Fund A and Fund B both delivered double-digit returns during good investment market and economic conditions.

However, during "trying" times, even though Fund A and Fund B underperformed, Fund B's returns dipped lower than that of Fund A. Thus, you should always assess the PRS provider's fund performance during both good and bad times. Please see "Investment Expertise and Capabilities" for more information.

3. Fees & Charges

Consider the various fees and charges by PRS providers before investing. For example, higher sales charges will result in you having a lesser amount to invest in a PRS fund, thus less to spend for your golden years! However, this does not mean that your selection should be based on the cheapest fees and charges. Instead consider the PRS provider associated with the most reasonable cost.

Fees and charges to look out for include sales charges, annual management fees, annual trustee fees, switching and transfer fees and redemption charges. Hence, it is always a good idea to do your homework and check the fund's product disclosure document and product highlight sheets by each PRS provider which detail the above costs.

4. Investment Expertise and Capabilities

There is always a certain amount of risk associated with investments. As such, you may want to consider a PRS provider that can optimise returns on investments within acceptable risk boundaries. How do you evaluate this? Do your research on the background of the PRS provider, find out more about the funds they manage and most importantly the track record of the fund managers. Some PRS providers have an award-winning track record and an experienced team who have proven to deliver strong and consistent performance over the long-term.

Some PRS providers have also been acknowledged for their various investment expertise and capabilities across asset classes, which gives a gauge on the company's ability to optimise returns over the amount of risk taken. You will likely want to choose the most reputable and capable PRS provider as possible.

Shopping around is key. There are many different resources available when seeking information on PRS providers and their respective schemes ranging from online resources, promotional leaflets, brochures, directly from the fund managers and the Private Pension Administrator (PPA).

Alternatively, you can opt to approach financial planners who can assist in helping you understand the options available in the market and find the best solution to help you attain your desired retirement lifestyle. It is important to understand that the fund offerings and strength for each PRS provider may vary and as such it is important for you to do your homework and select a scheme that best fits your requirements.

Datin Maznah Mahbob is the chief executive officer, Funds Management Division of the AmInvestment Bank Group, and a member of AMMB Holdings Bhd

Sunday, February 3, 2013

Duit di KWSP 'bersih'?

Assalamualaikum,

Baca petikan di bawah & nilai la sebersih mana&sehalal mana duit kita dlm KWSP jika KWSP 'baru bercadang untuk melancarkan dana islamik'.Selama ini? Renung-renungkan...


EPF considering launching first Islamic fund.
KUALA LUMPUR (Sept 18) — The Employees Provident Fund (EPF) is
looking at growing its Islamic-compliant asset exposure, a move which
has prompted the pension fund to deliberate on its potential first
Syariah-based fund.
EPF deputy CEO for investments Datuk Shahril Ridza Ridzuan said the EPF is still assessing the feasibility of a planned Syariah investment scheme.
“It could be a fund and we are still studying the proposal,” Shahril told reporters at the Global Islamic Finance Forum today.
“If we launch it, it will be our first,” he said without elaborating. According to Shahril, Islamic compliant assets comprise 30% of EPF’s portfolio and the pension fund’s aim to grow its exposure in this asset class is driven by demand from EPF contributors.
“We want to match our asset pool with market demand,” he said without specifying a target for EPF’s Islamic-based investment portfolio.
Sumber: The Edge (18 Sept 2012), [ http://www.theedgemalaysia.com/index.php?option=com_content&task=view&id=220578&Itemid=79  ]

Thursday, January 31, 2013

Market Volatility For Dummies


page 1
page 2
page 3

Tuesday, January 29, 2013

Invest now, thank yourself later












src: https://guidance.fidelity.com/starting-out/invest-early-and-prioritize?ref_ls=so1002


Tuesday, January 22, 2013

ASB comply to Islamic guideline?

Self - Explanatory


Tuesday, January 8, 2013

Why MAAKL Mutual?

Assalamualaikum wbt and bismillahi Ar Rahmaan Ar Rahiim,

Last post about comparison between Medical card PruBsn vs MAA Takaful has sparked various feedback from viewers. And also really trigger me to re-start to write. I think that post is quite considerate since I didn't totally bias towards MAA Takaful. I give the pros & cons between the products and let the viewer judge. And if we see on the bright side, PruBsn has introduced takaful plan with NO CO-Takaful after that (eventhough I am pretty sure that was not due to my post.hehe.) Who is the winning party here?Definitely the consumer. That is what we should be glad of. Enough about takaful.

Started on Dec 2012, I am officially with MAAKL Mutual as one of their financial adviser. WHY MAAKL MUTUAL? There were may reasons behind it. First of all, the transparency & commitment towards client. Please read this article from CEO of MAAKL Mutual . Again, please bother to read.

 I will try to push myself to write post and explain the other betterness of MAAKL Mutual in later post. Stay tune.