CIMB is Commerce International Merchant Bank. Normally we won't put money in this kind of bank, I think. But really no idea on IIRC and BCHB.

Anyway, putting money in FD is not an investment. If really want to invest, first step is to learn about mutual fund/unit trust.

Mutual fund is a mid-long term investment. Since the service charge of most fund is around 5-6%, normally funds need to take 3 years to gain returns. In fact, many funds perform poorly, however, there're some give you return much higher than FD.

Ya, there're index fund in Msia, which performance is following the KLCI.

Hi,

It's better you understand about financial planning. Set your financial target, then come out some plans to achieve your target.

First, you can save up some money in FD, for emergency usage. This amount depends on your expenditure. It's advisable you save an amount equal to your three month expenditure, thus, even you are jobless for 3 months, you still can survive.
After that, plan some investment strategies, start with mutual funds, insurances then stock market. Mutual funds are easy to understand, it's low risk, also low returns, if compared to stock. Then you can go for stock trading in KLSE.

Good Luck.

lowyat82,

In fact, I've purchased KLCI index fund, and it gives me return. I can't give any comments on the performance, but I can clarify few things here.
Index funds normally didn't have distribution. Maybe once few years.
The price trend is same as KLCI, as it invests in all composite shares.

If you want to purchase, consider the KLCI now. The KLCI now is quite high...it's not really a wise decision if you purchase now. Bear in mind, you have to consider the service charges.

For sure, global fund is good for risk diversification. Bear in mind...you should evaluate your financial status before you do any investment plan. Clarify your financial goals as well.

Save money in FD, if you can't take risk and you know nothing about mutual fund and stock market.

Invest in Mutual fund, if you can take low risk and you're clear about the operation of the mutual fund, eg. how the fund manager invest, how much is the service charge, etc.

Invest in stock market, if you can take high risk and you know much about stock market. Just to remind, don't think to earn fast cash in stock market. Investment in stock market should be mid-long term investment, not short term, which is more like gambling.

So, after getting know about yourself and your goal, you have to choose the most suitable investment mode. LOW RISK, LOW RETURN. HIGH RISK, HIGH RETURN. THIS IS ALWAYS TRUE!!!

Dreamer,

Typically, that's true. Everything is fair in this world...How much you gain is how much effort you put.

If you study about investment and know very well on it, sure you can reduce the risk by maintaining the return.

If you know nothing about investment, just choose stock like gambling, then the risk is high while return is low.

Blue chip is considered low risk investment...It won't give you more than 20% return I guess...The risk is when the economy of Msia went down like 97. Sure UT is lower in risk, as you won't loss that much if economy went down, compared to blue chip...

I'm not too sure how is the RM performance now. You may need to do some research on this.

For index fund, the manager will invest in the index stock only. For S&P500, ya, he will invest in 500 stocks only. Since the index is depending on the 500 stock prices, your fund price also will follow that.

I agree with Hotlink.

Switching is a way to manage our portfolio and optimize our return in UT. If the service charge of 2 funds is same, there's no any charge when switching. This is the case for most fund houses. It's a good way to manage our portfolio that we switch to bond funds when market is going low, and switch back to equity funds when the market is going high.

For sure, blue chips have lower risk...but most of the blue chips price is high...not everyone is afford to buy blue chips. In fact, there're many people buying small share and thinking want to earn fast cash. In this case, the risk is very high.

I just feel that, if you know nothing about share, better don't get involved. If you not clear about the UT process, please just save your money in FD.

Anyway, I think that dreamer101 is very good in share market...so maybe you can share with us, how to choose a good stock to buy...

Dreamer101,

I agree with you that we do not need to bother the price if we get a constant dividend from the stock.

Anyway, does anyone can guarantee that the stock will distribute dividend all the time? Dividend is not a must thing for common stock holder...it's not like bonds' interest.

The important thing is, study the financial situation of the company, no company will give dividend if their business is not good...

Dreamer,

I think it's important we study about the company before we buy the share. We have to study the financial statement and their management as well. As I say, there's no fast cash we can earn in stock market. How much we earn depends on how much effort we put.

Try to study the market trends and financial situation of the company, then we will know which company is strong in finance and can give us returns although the market is going low. By study the market trend, we can even manage to get more returns by buy low sell high.

We all are learning together now...

Ya, you should start with financial planning. Set your goal, save up an amount for emergency use. Then, you can plan any investment that suit the risk that you can take and can achieve your goal.

I think dreamer is right. If you get dividend of 6% from a RM6 share, you will get RM0.36 per share. This is same as your calculation, you get RM0.60 per share if the share price is RM10. The key thing here is, how many shares you're saying about. If your share price is RM10, I think one lot cost you RM10000, so you will get RM600 dividend. I'm not too sure about the tax, but 28% is the company tax rate.

Ya, for UT, you can't decide which share to invest in. UT is for the people who don't know about this and have no time to study all these things. So, the fund manager will do it for you. If you have time and put effort to study it, you should direct invest in share market.

Anyway, it's good that there's bond funds, where we can invest in bonds. Besides UT, I really have no idea how we can buy bonds directly. Maybe dreamer can give me some idea???

Maybe I'm conservative. I wish to diversify my portfolio to UT, bond and share. I believe even established bank stock also cant guarantee there's dividend every year. Anyway, I agree with you that buying a bank stock is good and high in return.

What investment scheme is that? Can get back money within 3 months and can drive vios? Then why not you share your scheme here?

USD5000 is almost RM20k....If can earn back in 3 months, then your return is RM7k per month. I think you can get retired soon.

This post has been edited by leekk8: Aug 28 2006, 12:20 PM

Does anyone know where I can get free online stock exchange game? I wish to play with this, but have no idea which website got it.

Preferable is local...

Huh...almost RM2000 per week...I think this is the income for a GM...I believe you also can loss USD 500-600 per week, right?

This post has been edited by leekk8: Aug 28 2006, 05:07 PM

We appreciate it if blizz can share with us about the forex thing. This is quite new in Msia. I just hope to know more about this. Either it's scam or not, I think we can evaluate it...We are not kids.

Which investment mode is suitable for you, it depends. You can't say that the investment is not good cause it just doesn't suit you. Anyway, any investment has risk. We have to invest according to our capability, the risk level we can bear with and our financial goal.

Blizz, you should study more about your job if you're interested on it. It's not a good way to intro the thing to public, where you can't tell people clearly. You should state that how we can earn money from that...the possibility we get lose, what's the fees and charges. If you want to sell your scheme, this is not a good place, I think. If you want to share with us, please tell us all about forex, not just how we can earn money. Nobody will believe that we can earn so much money without risk. If yes, this is not called INVESTMENT.