Tuesday, April 28, 2009

Learn To Invest

DPM is asking the Bumiputra and Indian investors to take up the remaining two billion Amanah Saham Malaysia (ASM) units as the Chinese have already snapped up their quota of 999mil units.

He was quoted “This clearly shows the level of understanding among the Chinese when it comes to investment and financial planning for the future.” Susah dahulu, senang kemudian!

He also urged parents, teachers and the media to play their part in educating the public, especially the young, to save and invest from an early age. He added that while the Government encouraged domestic spending to boost the economy, it wanted the people to save by investing their money in proper financial instruments such as unit trusts.

He said the additional income would come in handy for future planning.

Some current statistics on the fund manager, Permodalan Nasional Berhad (PNB).

The net inflow of money into unit trusts has been healthy despite the current global uncertainties with RM5bil invested in PNB related funds as of this year. This was in stark contrast to the scenario during the 1998 financial crisis, which saw withdrawals of almost RM1bil every month from unit trust schemes.

PNB enjoyed a net inflow of more than RM10bil into its funds last year. PNB had a total of 9.3 million unit holders, with a total investment of RM87bil. PNB had invested in 281 companies, of which 230 were listed on Bursa Malaysia.

1 comment:

Kayage said...

If I am allowed to collect deposits, I would issue a short term investment scheme with a lifespend of 3 years with a promise 10 % return.

Now, why do I want to do that?..

Well, sukuk is being offered to public with a general return of about 5%?.. So, I do wonder why are people indulging in it?.. After all 5% is not a big sum..

With the current economic situation, the capital market is particularly hit with any stocks undervalues.. especially them bluw chip stock. MBB was at one time valued at RM14 today it is hovering at about RM6 (tak check bursa lah.. malas).. Genting which was valued at about RM9 at it's peak is half the price now at RM4++ and many more examples..

Question to the general public: How long does a recession last?..

Answer: at most 2 may be 3 years.

When economy recovers, what happens to the share market?.. yes, it appreciates.. Your RM4++ investment could easily be RM6 in less than that time frame.. Assuming it does reach RM6, what would be your rate of return?.. RM2.. i.e total returns in % is 50, rite?..

Now, I wonder why the need to invest in sukuk at 5% return when the returns could be much higher in the capital market side?.. Yes, there will always be risks in the Capital Market end.. but risks on the blue chip stocks are so much lower... the GLCs would not fail.. it is not allowed to fail.. it is at one of its lowest now... there is no way but up from now..

Now, it makes you wonder how the funds gathered from the sukuk sales might be utilised, rite?.. :P

My final note to this post: I wonder who is the smart one.. the Indians or the Bumis and Chinese.. you go figure..