it depends on how u look at it, chinese quota is full, indian quota is > half full, Bumi quota is 98% available.
If they declare high dividend for AS1M what will be the impact? Chinese that wanted to invest more cant do that anymore, it will probably increase the indian's investment in AS1M since it is not full yet, but dont think will have any impact on Bumi's 98% availaibilty, as Bumi group still have many choices for fixed price fund, they still can top up those funds with good records such as ASB, ASW and ASD. So i dont see any resons PNB will declare 6.5-7% to please the majority (non bumi) investors in AS1M, and disappoint the Bumi investors in ASD, ASW (which majority are Bumi investors), Dividend for ASW/ASD is less than 6.5% for year 2010

There are many more ways for BN government to raise fund (besides thru AS1M), they can raise thru Sukuk Malaysia, Bond Malaysia. Increase % of EPF contribution or etc.....so not necessary to raise fund by filling up the remaining 6 billion of AS1M by Bumi.

This post has been edited by cheahcw2003: Aug 28 2010, 11:29 AM

Just wonder when only they open again ASW2020 and ASM ... wait for so long time already ....

u may wait until the cows come home, just find other alternatives

Oh.. I was thinking about trying my luck again for the Amanah Saham 1Malaysia for the chinese quota, but i was running out of luck because it is sold out already, sold out for good..

Haiz.. now can only hold the investment until the upcoming dividend declaration..

But still fortunate to have put since the World Cup until 25 August, now no chance already...

This post has been edited by smartinvestor01: Aug 30 2010, 05:51 PM

I have an opportunity to take up loan frm Bank Rakyat.
Amount 70k, Interest 4.9% 15 years, monthly 675.

I plan to invest in ASB. But i found out that if i do asb loan its LOOK much more cheaper that Bank Rakyat

BLR 6.3%
Maybank (-1.65% if more than 30k) monthly payment 542
Easy RHB (-1%) monthly payment 565.06

Which one is from those 3 option offer more stable investment and most important profitable?

any ideas?

If I'm not mistaken BLR will go up n down. When it goes down....then it's ok but we dun no wat will happen in another 15

years.

Other thing is when u go for Bank Rakyat, de 70K is yours. Mayb u come cross another opportunity to invest in bigger

profitable business, then de money is there n u can take out as u wish. But for maybank loan.....u can only receive de

dividen yearly n the 70k is no urs yet.

CASH is king nowdays bro n u must have high dicipline in managing it.

CHEERS!

This post has been edited by Jebonmacho: Aug 31 2010, 12:46 PM

The BLR rates are going up consistently, and i think it is carrying risk already, instead of being a very certain option..

However, depends on you to take the risk..

I think if ure gonna take a loan to invest in ASB is worth it. The difference is very small. Plus the BLR will keep going up. ASB dividends keep on going lower. ASB investment should be based on cash. Just re-evaluate your priorities and save more each month then dump it into the ASB. Dont go for loans. Just isnt worth it in the long term. I maxed out my ASB using just my savings alone.

Sorry. Typo error. I meant 'I think if ure gonna take a loan to invest in ASB is NOT worth it'

Agree with this .. Over the long term, your investment via loan will be pinched by inflation and increase in the BLR rates, where you feel nothing on your investment return anymore..

This is called 'the minimizing of investment power'..

3 options..

So then.. bank rakyat offered fixed rate at 4.9% ... but the rest based on blr... does the investment (bank rakyat) make positive cash flow?

ASB dividen never below than 7% so far..

This post has been edited by COMBOConvenience: Sep 2 2010, 04:35 AM

So the loan is about 5% and the interest gained from ASB is about 8% so the actual earnings is about 3% only. This is almost the same as the current FD rates. So whats the big benefit in taking a loan??? When the BLR goes up the interest rates will go up. So over time it would be more beneficial to invest in FD rather than take a separate loan to invest in ASB.

ASB is only for those who have cash reserves which are not earning as well. It defeates the purpose if u have to take a loan just to invest in ASB. Best to just save up and invest periodically in ASB rather than take a lump sum loan.

I guess taking out a lump sum loan to invest in ASB can be considered 'forced savings', good for ppl who lacks the discipline to save on a regular basis.

I think if u take Bank Rakyat or BSN personal loan at 4.9 - 5 % interest rate FIXED....u can get minimum profit only.

Simple n logic calculation 8 - 8.3% (ASB dividen last year) - 5% (fixed interest rate on personal loan) = 2.5 - 3% profit every year without kacau de modal pokok.

I think dis method apply for sumone who has no dicipline in saving money monthly....like me. He he

This post has been edited by Jebonmacho: Sep 2 2010, 11:25 PM

frankly speaking.. you don't have to take loan to put into ASW (if you think for a second you want to be mr.donald trump or robert kiyosaki) . Do this and you will end up being "poor dad" if the BLR goes up the next year (more than your ASW dividend can cover)

Buckle up as you will see more of these BLR rate wars among banks . .. its already starting .These legal loan sharks are getting more and more irritating .

Nowadays Banks are giving out loans to anyone who wants to bite the bait. I just got one from RHB and i refused. False assumptions are being shoved into consumer's throats making them worry about another financial crisis and/or brainwashing them into thinking they don't have enough money to live.

This is good - borrow 200K to put into the ASB, & earning the differential interest of 2.5% minimum, amounting to RM5K going into the pocket effortlessly every FY-end for the ASB.

Am I right in the above, chums ?

What is good? Current FD rates for 1 year is about 3.6-3.7% and this will go up in tandem with BLR increase. So whats the point in taking loan and putting into ASB?

Current 1 year FD rate is around 2.80% - 3.30% only.

Thats my plan! But bank rakyat only offered 70k max / 15 years/ 4.9% fixed rate.

At least you can withdraw the amount if you need it for emergency and put back in as needed. For ASB loan, your cert is kept by the bank and to withdraw/reloan etc is a big pain in the butt