FYI, insurance compensate u based on market value, not sum insured

ur dad ni dracula

sum insured is irrelavant, insurer will compensate based on lower of market value and sum insured

Hwang Investment Management

Check this out:
http://www.fundsupermart.com.my/main/prs/g...tePRSTable.svdo

You're young, why limit yourself to "low risk investments"? You CAN afford to take some risk, TIME is your most valuable asset. You can consider to invest in some mid-risk unit trust funds, since u already building an emergency reserve of RM300 a month.

As a rule of thumb, make sure to have an emergency reserve of at least 3 months of your net income. Once that is achieved, INVEST, don't let your excess cash sit in bank earning zero/meagre interest.

Btw, where are u storing your emergency reserve? 1-month fixed deposit(s)?

Oh u just started out...it's very good that u started to have financial consciousness at such young age.

Yes, it'd be a good idea; every few months u go place a RM1K FD. Don't put long-term, 2-month tenure (for 1-month tenure, min. amount is RM5K) would do since it's just an emergency reserve, u wouldn't want to place a 12-months FD and then having to withdraw it at 11th month and lose 1/2 of the contracted rate.

Focus on building sufficient emergency reserve first, then only think about investments.

Over long term (10 years and above), a well-managed fund can quite safely outperform your housing loan interest rate. As I've said, u have time on your side, you're young, u can withstand the temporary shocks that the market might present you.

If you don't wanna worry too much/spend too much time learning and monitoring, I'd suggest that you pick 1 good "balanced" fund and just do monthly Dollar Cost Average on it (e.g. invest RM200 into it no matter what happens), over time u should see the fruits.

U can learn about unit trusts from Public Mutual thread, Fund Investment Corner and Fundsupermart.com threads here.

This post has been edited by Pink Spider: Sep 8 2013, 05:24 PM

Allocate all your excess cash into building up the reserve first, don't invest anything for now.

Wow...u want 5 times of your salary...net or gross?

There are many schools of though on this...I personally prefer to use "x number of months' cash requirement" method, e.g. I know with fair certainty that I need RM2K a month, and I want to have 6 months of reserve, so my reserve would be RM2K x 6 = RM12K

Maybe u just started working, u don't have past records to aid u in determining your average monthly cash needs, perhaps it'd be better that u use the "net salary" basis.

I think 3-6 months would be ok, IF your job has reasonable security. For ppl whose job is not that secure and/or got dependents and/or heavy commitments, they might have up to 24 months of reserve.

Eh, NEVER use mutual funds to park your EMERGENCY RESERVES, excess cash maybe yes, but hell no for your cash reserves. Some well-proven low-risk funds (EVEN BOND FUNDS) have been hit in recent times, giving negative returns.

If mutual funds that invest/deposit in money market products like REPOs and short maturity bonds (look at AmIncome Plus, OSK-UOB Money Market Fund, OSK-UOB Cash Management Fund) still okay.

oi Unker Wong, sudah minum kopi belum? Ataupun u nak nikotin