i invest in other things rather than this mutual fund

you know one day my photographer friend out of the blue introduce me to this and i was totally amazed with the "high returns", when i checked with charts, now only i get it, he got in during the 08 and 09 period, u simply poke whatever share in KLSE also gain a lot lah coz the average price went down around 40%

guys, pls do your research on what other structures of investment available in the market and WHY you should and should not invest in these schemes.

if you do not do as above, then please you can forget about investing totally because you'll be the suckers in the long run, if you bought a few condo and rent it out, probably the return will be so much higher than 6% or more and your property will appreciate in the long run

Golden Rule of Investment that i have learned is :
1. Facing Uncertainty + Market Cycle (who can predict the future ? nobody)
2. Risk : Reward ratio (how long to win %, when lose, lose how many % ??)
3. Fees (all the charges that will slowly eat up your profits)
4. Industry Structure (are your "managers" working for you, or he's sleeping ?? does he have experience ? )
5. Definition of Safe (under what conditions will screw you up ?)
6. Market conditions that you'll be investing in


Structure is how you know whether this investment will give you good returns or burn ur a$$

Hedge Fund (George Soros) charges 2% annually, with annual return of around 8% and above, if his returns falls too low, all their investors will move out their money from the company and thus the company cannot survive. These hedge funds investors are those super rich people with millions to billions to pension funds and such. What is more important here is the structure, because you are paying the managers based on "true performance" rather than on fixed income basis. It's all about profit sharing basis which means that the managers will have to work hard for you if they want to get their bonuses.

http://en.wikipedia.org/wiki/Hedge_fund

i put it in a more simple manner, if you take this investment as your business, will you want the person that handles your money to be on profit sharing basis(he'll fight for you if he wants a chunk of the returns) or just salary basis(he does nothing also get paid), from what i know is that the salesman gets a very big chunk of cash for pulling in customers rather than to manage, thats why so many people joined.

ps : unit trust, mutual fund or what also has been in the market for long long time already, if not mistaken, 20years ago my mum also dumped in money, made some money in the beginning and during the crash, lost until now also cannot recover coz some of the companies disappeared during the crisis.

This post has been edited by AllnGap: Jul 16 2010, 08:29 AM

what i mean is that the companies in the share market disappear during the crisis, so if you average out for so many years, actually you're in the loss, rather in profit.

those who does not do research always fall into "suckers" category, making people like warren buffet or bankers richer than ever