It is NOT as much as a quesion of cost. It is a question of cost effectiveness. For whatever amount of money that you put into MRTA, in general, you can get more protection and better pay out if you buy life insurance instead.

Dreamer

My answer to SOME of your questions:

1)PN17 was formulated to replace PN4,Pls refer to the link for details.

http://www.bursamalaysia.com/website/docum...SB_%20Jan05.pdf

2)As long as the share quotation is not suspended and there is a buyer,you can still sell the share.

3)Apart from no dividend,the main disadvantage of a warrant is that there is an expiry date for the warrant.If the warrant is out of money,in most instances,it will expire worthless.

This post has been edited by lklatmy: Mar 8 2006, 11:34 PM

I think you are right as well. That's the reason why you seldom hear people buy MRTA instead of life insurance. In my opinion, i rather put all the money i wanna pay for MRTA in the life insurance. Let's say if anything happen to me, i'll still be covered by the insurance. So my family can use a part of the money to pay for the house, right?

But i'm wondering that if i put all the money into the life insurance, will they pay for all the illness or problem i face on my life ha? I heard they only payout for certain type of illness, right?

i took the ASB loan for about rm 100k for 20 years, this is the conclusion i've obtained

1st year pay rm 800 more or less a month
2nd year and so forth rm150 more or less month (use the dividen to pay back the load), hehehehe, i dont mind not touching the dividen for 20 years.

so after 20 years, paying about 45600 i get rm 100k, which is not bad in my book, plus the whole thing is like insurance as well, anything happens to you, your benefactor will the get the money.

I believe that if you manually save that amount of money every month into ASB (RM800 every month for 1st year and RM150 every month for the next years) you will get higher returns. This also remove the risk of BLR increament.

Anyway the main advantage of ASB loan is it will force you to be diciplined. It is easier to allocate money if our mind set to pay loan rather than to save it into bank.

TQ so much.

Some policy got coverage on 36 Deadly Diseases ... not so sure about the details but if you one of these group diseases, the insurance will pay some money for it.

About the MRTA, the bank will ask to buy it no matter how, right?



This post has been edited by David83: Mar 9 2006, 09:23 PM

(see above.)

This post has been edited by wodenus: Mar 9 2006, 08:24 PM

"out of the money" you mean.. how does a warrant run out of money ? anyway regardless of whether it's in the money or out, if you don't convert/redeem/exercise before the expiry date it will expire and become worthless.

A warrant cannot be redeemed.It can only be excercised.

No. You have a choice in most cases. There is a threshold where it is compulsory. It is dependent on the percentage of your housing loan versus your house value. So, if you put in a bigger down payment for your house, you can avoid MRTA totally.

Dreamer

Out of money means that the warrant is worthless to be converted eg.

mother share - RM0.50
warrant conversion price RM0.80

then the warrant is out of money since the mother share price is lower than the conversion price, better still buy directly the mother share.

The purpose of investing in warrant is to have high gearing (small knife cut big tree) eg.

Mother share RM10
Warrant conversion price RM5
Warrant current price RM6

Take the scenario of the share goes up tp RM15 and warrant follow suit to RM10

(15-10)/10 = 50% (the percentage gain from investing in the share)

(10-6)/6 = 66% (the percentage gain from investing in warrant)

Also you use less capital RM6 only compared to RM10 in share.

But if the share goes down below RM5 then the whole warrant become worthless and if expired at the time then you lose 100% of you RM6 capital but if you bought the mother share rather warrant at that time, you still can wait the market condition to improve and may be one day it will goes up to RM10 again. So the main enermy of the warrant is its expiry time.

Very good explanation. Helps me a lot.

Why not ? you can redeem a warrant same as you redeem a discount coupon, you present the coupon, you pay x amount of money, you get something in return. Same concept right ?

I think there's difference of interpretation on the term "redeem"and "excercise"here.

AFAIK,in Malaysian context,redeem is used in relation to loan stocks that are unconvertible,ie,on maturity of the loan stock,you just wait and the issuer(or borrower)will send you a cheque .This process is known as Redemption.

In the case of warrants ,like what you described,you fill up the excercise form,pay the excercise price and you get the underlying mother share in return.This is known as Excercise.

can anybody tell me why sometime i heard people said the regional share market is more aggresive than our local share market? what is the reason for all of this? is your share market being control by any party or...? can somebody give a brief explanation on it? THanks

Since the currency control during the financial crisis, malaysia market always being outlook by the foreign investor that's why Malaysia market sometimes is quite dull and stagnant for the last few years. Generally, foreign fund are much more aggressive than local fund house. Normally with their (foreign fund) participant, the market will go up and down quite drastically and causing share trading much more active.

i dont know whether i should post here or kopitiam, but anyway...........
I have recently invested in this Swisscash mutual funds, invested 1K USD
just to share with you all with this website. Any comments are welcome!!!

surf the website for more information http://www.swisscash.biz

This post has been edited by Gravity: Mar 13 2006, 11:28 AM

I don't know why people invest in funds they don't know or don't understand. And then they complain when the fund disappears. Swisscash is probably just another HYIP.. that's not investing, that's gambling the office is not a proper office -- it's a virtual office.

http://www.yourcityoffice.com/contact_us.php

Whoever heard of a mutual fund operating out of a virtual office ?

Also, look at http://www.swisscash.biz/web/asc_financialteam.aspx

There are three females, three males. But there are five male names and only one female name LOL


This post has been edited by wodenus: Mar 14 2006, 02:42 PM

sorry wodenus, can you provide us more facts instead of opinions. Btw swisscash is not a HYIP. Well, at first i too wasnt too convinced to invest into swisscash but after doing some researches, i invested my referal invested 10K USD and now she took back RM100K+ from the bank. She even has a bank slip which clearly written where the bank transfer the money and who. If you think Swisscash is a scam, do you think it is possible for them to open an account in a bank under swisscash? Im sure the bank will check through their existence 1st as the bank themselves would be very afraid in involving with all these scams. and also for your information, Swisscash has this sms system which is very effective. If there is any new investor who joined under you, sms wil notify u within 2-3 mins.

and also, if this is a scam, do u think they are able to pay u the return right on time? until now, no one has ever complaint about not getting paid or the paid is not on schedule. alot of people had already invested in swisscash already. If u really think it's not convicing, u can try 100usd / RM380 in swisscash 1st. Well isnt it's better than putting in your bank right?