Your risk tolerance? Age? Prefer Malaysia or Asia ex Japan market?

Moderate + growth
Both continent

Hwang Investment Management

They dun impose sales charge, correct?

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

please check ppa website. if your term of GOOD is not impose sales charge, then you may have less choice.
http://www.ppa.my/providers/providers-schemes/

all fund jz launch less than 1 year..hard to compare performance.btw you may refer to the fund manager & their track record on their managed unit trust fund.
or you open account with each provider than let us know??

Anyway thanks for d info
Dun have so much $ to open with each provider

Hi guys,

I have a financial advise I would like to ask, hope this is the correct section to ask.

My house loan is now at RM180K balance and I have PTPTN balanca at RM20K.

I have extra cash to pay off my PTPTN but I want to know, is it better to pay off my PTPTN or use the money to pay my house loan?

As you know, PTPTN, by this 30 September 2013, I can get discount of 20% which is RM4K.

My house loan interest is BLR - 2.24%. Loan amount balance RM180K.

I have RM16K, I can pay off the PTPTN after discount 20%.

Which one is better?

Thank you very much for your help.

I got to know much about personal finance on going through your link. Its quite important to have an idea about the expenses as well as the resources where we can get funded from.

House loand interest > PTPN interest.

Normaly we try to fair reduce those interest that are higher.

Since you get a discount of 20%, rm4k not only interest you save also pay less of what u borrow.

Why not Settle PTPN , then monthly you can commit more on the housing loan which wont solve easy in short term.

Need some financial advice here.
Fresh grads here.
Net salary after deduction of EPF & sosco RM 2.2k
Minus Monthly Expenses :
Food : RM160
Petrol (motor) : RM50
Support brother education : RM500
Utilities : RM250
Emergency reserve : RM300
Entertainment : RM50
Balance : RM890

I am buying a low cost house costing RM72k. The loan for 20 years tenure requires monthly repayment of roughly RM 500. Should I repay the additional RM390 I left from my monthly income into the housing loan since the interest rate charged by the loan are higher than most of the low risk investment available?

This post has been edited by starz92: Sep 8 2013, 09:30 AM

Depend on type of loan u took, if full flexi loan, u need to check with bank first

under normal condition, it is best to pay off loan as soon as possible....but I would suggest that you keep the RM 390 saved and reinvested.. this is built up your "CASH" reserved" for a few years just in case something unexpected popped up later.....(ex...motor got stolen, brother needed a bike later to start work, replace a new TV, family member hospitalized, etc...)
because most "investment" vehicles expects investor to stay invested for "at least a few years" to enable reasonable ROI.

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)?

I am planning to transfer into fixed deposit once it reached RM1k (i.e every 3 months).
Any example of mid-risk unit trust? In Malaysia, is most unit trust from bank? Assuming my house loan interest rate is at 6.5% and it's a flexi loan, I have to choose investment that gives above 6.5% interest in order to divert the extra money (RM390) from bank loan to the unit trust or etc right.

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

Does this means that even if I reinvest the RM390 into an investment vehicle which gives ROI less then the loan interest rate, it's still reasonable provided that the cash is liquid enough when I need them?

Won't my emergency fund (Which I plan to cap it at 5 times of my current salary) be enough for that?

In this case, in order to build up my emergency fund quicker, would it be wise for me to allocate the extra money into my emergency fund until it reach a specified target (lets say RM10k) before I invest it into unit trust? Or should I just slowly build up the emergency fund by RM300 per month and invest the remaining unit trust?
Thanks for the advice, I will learn more bout unit trust from the site you suggested

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.

haha, net salary of 2.2k x 5 should be reasonable. That would also be almost equivalent to my cash requirement for 7 months.
(Budgeted requirement per month for now would be around Rm 1.5k. )