Our Deepest Fear

Saturday, August 23, 2008

by Marianne Williamson from A Return To Love: Reflections on the Principles of A Course in Miracles

Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves, Who am I to be brilliant, gorgeous, talented, fabulous? Actually, who are you not to be? You are a child of God. Your playing small does not serve the world. There is nothing enlightened about shrinking so that other people won't feel insecure around you. We are all meant to shine, as children do. We were born to make manifest the glory of God that is within us. It's not just in some of us; it's in everyone. And as we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear, our presence automatically liberates others.

Sunday, August 17, 2008

"For things to change you must change first"

Time to pick up financial stocks: HwangDBS

Saturday, July 12, 2008

HWANGDBS Investment Management Bhd said the global financial market is on the road to recovery and that now is a good time to pick up stocks.

“Technical indicators point to the conclusion that financial stocks are bottoming out, which presents an opportune time to buy low and potentially sell high on their upswing recovery,” its chief executive officer and executive director Teng Chee Wai said in Kuala Lumpur yesterday.

HwangDBS said the recent Bear Stearns collapse is indicative of the bottoming out of the market.

The recent investment of Sovereign Wealth Funds amounting to US$43 billion (RM139.3 billion) into bonds and securities of financial institutions reinforces the company’s view that now is a good time to invest in financial institutions.

“As such, HwangDBS expects this sector to deliver potentially strong returns over the medium ter m,” he said.

Teng was speaking to reporters after launching the comp any ’s first dual-product — HwangDBS Global Financials Capital Protected Fund (GFCP) and HwangDBS Global Financial Institutions Fund (GFI).

Teng is confident that the funds can generate returns of between 15 per cent and 20 per cent per year.

The GFCP is a three-year capital- protected investment opportunity aimed at providing investors with potential income distribution and capital appreciation from the exposure to a basket of selected global stocks.

The minimum initial investment for GFCP is RM2,000 and minimum additional investment is RM1,000. It has an approved fund size of 500 million units retailing at RM1 per unit during the offer period which ends on August 23 2008.

The GFI is an open-ended growth fund with a limited subscription period of two years, aimed at providing a benefit to investors via potential capital appreciation over the short to medium term through investments in securities of global financial institutions.

The minimum initial investment for GFI is RM1,000 and the minimum additional investment is RM100.

It has an approved fund size of 400 million unit retailing at 50 sen per unit during the initial offer period.


Source: Business Times Online (11/7/2008)

What is Dollar Cost Averaging?

Sunday, June 22, 2008

Often referred to as a personal investment strategy, many of us understand this concept as an investment technique which helps one smooth the art of one's investments over time. However, we may not be fully aware of its underlying strength.

The underlying advantage of adopting the dollar cost averaging strategy is that the
average cost of your investment will be lower than the average price of the investment over the period.

However, two fundamental rules must be followed:


Ü You must invest regularly (monthly, bimonthly, or quarterly)

Ü Your regular investment must be of the same ringgit amount each time.


Example : (a)


Month

Regular Investment

Unit Price

Unit Acquired

1st. Mar

RM5,000

RM1.08

4,629.62

1st. June

RM5,000

RM1.01

4,950.49

1st. Sept

RM5,000

RM0.70

7,142.85

Total

RM15,000

RM2.79

16,722.96


Average Unit Cost: RM0.89 (RM15,000 divided by 16,722.96 units)

Average Unit Price: RM0.93 (RM2.79 divided by 3)


However, if you do not comply with rule (2) and instead invest the same number of units regularly, your average cost investment = average price of investment.


Month

Regular Investment

Unit Price

Unit Acquired

1st. Mar

RM4,320

RM1.08

4,000

1st. June

RM4,040

RM1.01

4,000

1st. Sept

RM2,800

RM0.70

4,000

Total

RM11,160

RM2.79

12,000


Average Unit Cost: RM0.93 (RM 11,160 divided by 12,000 units)

Average Unit Price: RM0.93 (RM 2.79 divided by 3)


By adopting the dollar cost averaging strategy, you are investing at below average price.

Furthermore, by investing a fixed sum on a regular basis you buy more units in the fund when the unit price is low and less when the price is higher. As such the need to be able to time the investment market is reduced.



Source: www.oskuob.com.my


Money on Malaysians’ minds

Research done by Synovate Sdn Bhd (market research Company)

1,018 citizens between the ages of 15 and 64

Household income RM1000 – RM 15000

Key findings include:

  • 6% of respondent had a household income that would allow them to afford all the things they want and which is suited for their lifestyle.
  • More than 78% said that they would be happier if they had more money while more than half agreed that the more money one has, the more problem one has
  • Money occupies their thoughts, with 75% saying that they think about money and how to get more of it
  • More than 72% agreed that success is about having what you need and not necessarily what you want
  • More than half felt that the time it took to become financially successful was not worth the time it took away from other more important things
  • Close to two thirds of the respondents made their own financial and budget plans while 58% set their own financial goals

The Riches Secret

Thursday, June 12, 2008

Let's watch this inspiring video;

video


Commentary on EPF Rate of Return

Tuesday, June 10, 2008

This commentary below is based on EPF TO INVEST MORE IN FIXED INCOME PRODUCT.




Based on chart above, we can see the Rate of Return (ROR) of employee provident fund from year 2001 to 2006. Even though the dividend rate showed positive return overtime, but the inflation rate that keep increasing was reduced the net dividend rate given.

On top of that, the announcement on the increasing of fuel price and other prices was resulting to increase the inflation rate up to 4.2% this year. Therefore, by solely dependent on the EPF's ROR, definitely will not enough for us to be financially free on the old days.

The decision of EPF to invest more in fixed-income product to secure the members' savings is good. But of course the return is slightly lower if compare to investing on equity product. And this is not enough for members to fight against the inflation rate that continuously increase. We should take this situation seriously. This is due to inflation can reduce our purchasing power over time.

However, members can withdraw part of their saving to invest on unit trust product which offering higher return in order to hedge against the inflation rate. We should take out the negative feeling towards investment on unit trust. Each unit trust company have their own strategy to ensure the members enable to gain profit from their portfolio. Otherwise, there are a lot of investment products or unit trust products that offer a better return with affordable risk.

Therefore, we should consider doing investment to secure financially in the old days. By saving only is not enough for us to hedge against inflation rate. Investment enable our money create more money. However, saving is also useful to us especially during emergency time.

That's all

Your Financial Advisor;

Nor Zana Ithnin
Unit Trust Concultant
CIMB Wealth Advisors Berhad
014-3214381