Different fund has different rate of service charges. Most of them are around 5-7%, but some of them are 1%, 1.5% or even 0%. Beside this initial service charges, there's also annual administration fee or annual trustee fee, which is around 1-1.5% p.a. All these charges are transparent to investors. Investors should be clear about all these charges before they invest in mutual fund.

Leekk8,

So, when you invest on unit trust, you lose 5% to 7% immediately due to service charge. Then, every year, you lose another 0% to 1.5% due to annual maintenance fee.

The FD is looking better everyday.

How about this idea?? Buy a good blue chip bank stock that pays dividend yield of 6%. You lose some money on commission to buy the stock but you gain dividend yield of 6%. You do NOT have to sell the stock to make money. If the stock goes up, fine. If not, you still collect dividend.

Risk: the bank may have a lot of bad loan if economy goes bad. So, pick a bank that is very well managed.

Dreamer

FD getting better = bad for stock market and bond right?

wat i know is Singapore/Japan's FD rate is so low bcoz they want ppl to float their money on the market. since it's not an option to invest in FD there, ppl's money spent more on the stock market.

malaysia's stock market is so dead u hope for dividend income more than appreciation i guess.

Ky_khor,

Latest book/study/research show that over the history of US stock market (50 to 100 years), high dividend and value stock give the best return. Growth stock usually do not do very well in the long run. So, this is NOT limited to Malaysia stock market.

Dreamer

P.S: The book is "The Future for Investor" by Jeremy J. Siegel

http://www.jeremysiegel.com/index.cfm/fuse.../page/books.cfm


This post has been edited by dreamer101: Sep 27 2006, 10:14 AM

Yes, if you invest in UT, you lose 5-7% immediately and need to loss maintenance fee every year...but if you choose the fund correctly, then the return is still higher than all these fees.
For sure, invest in stock market has better return. However, it's advisable we study about the company before we invest in it. If you're confident in banking, then you can study their annual report for past few years, evaluate their performance and consider their management quality. High dividend yield stock is always more safe than others. Anyway, I'm not sure how much is the minimum unit that we can buy in KLSE. If the minimum is 1000units, then not everybody afford to buy the blue chips, as usually their price is very high.

Malaysia stock market is half dead already, no foreign interest, low volume apart for a few speculation stock. It is going nowhere at the moment even for big blue like MISC, TM, Genting, volume sometimes only a few ten thousand shares changing hand for a session. KLSE's counters might have around 1300 in number but half of those didn't have any transaction at all almost everyday. Those kind of listing serves no purpose except for company owner to liquidify their holding and profit from it.
The only big player in the market are EPF and PNB.
Quality is more important than quantity.

Apart from some high dividen yield stock (7-8%), there is almost no attraction at all mainly due to sluggish growth of domestic economy. If not export industry is doing quite well at the moment, domestic economy might already been in recession.

Invest in forex..I gain a lot of profit from it..There are many broker online..Choose what u desire..If u have knowledge on technical analysis,why not try it..

its betta if u hav knowledge on both technical and fundamental anlaysis... bside, it depends on whether u go for short or long term. if u aim for short term, then time management does matter lotz... u can earn lotz in between the spread or what ppl so called "swing"...

You are essentially gambling and taking a lot of risk at the same time. Some people can do it and do it well and most cannot. The risk level is so high that it only takes one bad day to bankrupt you.

Dreamer

That depend how much u want to put ur margin/leverage..Enter a trade when there is a downtrend..u now when to exit the market..that why u can't be greedy..yes. there is a risk..for usd1k, i can double it in 1 month...

Sure, if you want high return, there is high risk. Double US1k in a month, I can imagine, you also may loss US2k in a month. To be successful in investment, a lot of effort have to be taken, else it's gambling, just depends on luck.

If this is good investment, Warren Buffet will put his time and effort on this...but in fact, ???

Apis,

There are different level of risk. In stock (unless you do option), you put in 1K and the most that you can lose is 1K. This is not the case in FOREX.

Let's be honest here. If we are not greedy, why do we invest/gamble any money??

To make your USD 1K in one month, how many trades did you do per month?? What is the size of your trades?? Your exposure to loss is definitely more that USD 1K. It is more like 10 to 20 times that.

The risk of losing (A) 1X your principal is different from the risk of losing (B) 10 to 20 times your principal.

In (A), you lose money. In (B), you go bankrupt.

Leekk8,

The risk is more that losing 2K per month. It is probably 10 times more than that. We are talking about bankrupcy here.

Dreamer

because he entered the market based solely on fundamental reason,thats why he got burned

This post has been edited by mobiusone: Sep 28 2006, 10:40 PM

lol...Forex isnt evil at all.
The liquidity and volatility makes it a great place for some speculative trades and scalping.

A lot of people went bankrupt because they place everthing they had into the market.Which is of course a grave mistake.Only trade it with an amount of money that you could afford to lose,if you do not have it,then dont.A lot of forex experts always mention this very important rule.

There are plenty of more solid investments out there,which yields good return in the long run.Forex is earn it or lose it,that makes it strictly short term.

Mobiusone,

Another word, it is gambling. Some people can do it and most don't.

Dreamer

guys..if i have rm3k to invest, what should i invest in ? i dont mind low risk low return stuff.. no FD please

Put into ASN/ASB/ASW thing... or a good mutual fund

I only loss around usd100-300 per month compare to what i gain..Rite now,i'm a full time forex trader..I close my trade when my trade is below 25 pips..i trade 5 pair in a day..gain around 100 pips..

Apis,

Good for you. You have the discipline to limit your loss. This is NOT for everyone. Even just on normal stock trading, I was too greedy and I lost half of my life savings because of that. It was a very expensive lesson.

Dreamer

If you have time and interested, you can study a bit about some big firm financial status...choose the best 1 and buy its stock. High dividend yield stocks are high recommended.

Mutual fund is another option, but there will be some fee charged, so you must understand the fee mechanism of mutual fund before you invest.