"1. It is safer to invest in liquid assets than illiquid ones because it is easier for you to get your money out of the investment.

2. Examples of assets that are easily converted into cash include blue chip and money market securities."

wanna ask, wat is blue chip?

can u show me d link to it? coz i cant find it >.<

i think this one is good

http://www.investopedia.com/university/beginner/

i jus read and found out that mutual funds is bacisally giv our money to d pro and let them invest for us...

Advantages of Mutual Funds:
. Professional Management - The primary advantage of funds (at least theoretically) is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolios. A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments.

. Diversification - By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. In other words, the more stocks and bonds you own, the less any one of them can hurt you (think about Enron). Large mutual funds typically own hundreds of different stocks in many different industries. It wouldn't be possible for an investor to build this kind of a portfolio with a small amount of money.

. Economies of Scale - Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than what an individual would pay for securities transactions.

. Liquidity - Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time.

. Simplicity - Buying a mutual fund is easy! Pretty well any bank has its own line of mutual funds, and the minimum investment is small. Most companies also have automatic purchase plans whereby as little as $100 can be invested on a monthly basis.

Disadvantages of Mutual Funds:
. Professional Management - Did you notice how we qualified the advantage of professional management with the word "theoretically"? Many investors debate whether or not the so-called professionals are any better than you or I at picking stocks. Management is by no means infallible, and, even if the fund loses money, the manager still takes his/her cut. We'll talk about this in detail in a later section.

. Costs - Mutual funds don't exist solely to make your life easier - all funds are in it for a profit. The mutual fund industry is masterful at burying costs under layers of jargon. These costs are so complicated that in this tutorial we have devoted an entire section to the subject.

. Dilution - It's possible to have too much diversification. Because funds have small holdings in so many different companies, high returns from a few investments often don't make much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money.

. Taxes - When making decisions about your money, fund managers don't consider your personal tax situation. For example, when a fund manager sells a security, a capital-gains tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability.


but... i think mutual is good for beginner like me

so does it mean that, for this one

Fees can be broken down into two categories:
1. Ongoing yearly fees to keep you invested in the fund.
2. Transaction fees paid when you buy or sell shares in a fund (loads).

if it is unload, then d onli fees that i need to pay is 1. onli?

- Removed -


tell me more ab it.... hhmmmm....... no. 1 unit trust manager ......

This post has been edited by Geminist: Aug 10 2006, 05:06 PM

ermm.... any one can pm me the link to FD requirement?ccoz i dun think can post d link here i guess


wats d % of money that i can earn? btw, now onli got rm500-600 as beginning....


@geminist
thanks for d input

This post has been edited by low yat 82: Aug 11 2006, 09:02 AM

i alrewady found out that d FD interest is around 3-4%


btw, i see mmost service charge or fees (for load) is around 0.5-7%

hmmm...i wonder where can i find unload funds.....

This post has been edited by low yat 82: Aug 11 2006, 09:52 AM

unload means no need pay agent money of service charge or transfer fee...

load means need to pay....

i.e. Service Charge 0.25% of NAV per unit


read this one... http://www.investopedia.com/university/mut...utualfunds2.asp

@cherroy
thanks for d info

This post has been edited by low yat 82: Aug 11 2006, 11:34 AM

wat r u doin...

1month FD... after 6 month the n go get d money???

i think d calculation is that, 12month-> full interest is 3.1% so each month is 3.1/12=0.2583%

if put 1 month, so money u get is 0.2583% x 10000=25.83.

correct me if im wrong... i also learnin

hhm.... if like that, i think satu kali FD alot will b better.... see this

6month FD
satu kali rm60000 -> 60000 x 3.5/100x0.5 = 1050

each month FD 10000 for 6 month
10000x 3.1/100 x 31/365( or use 1/12)=26.33
so, after 6 month = 158 onli!!!

diffrent ab 892!!!

@geminist

i refresh bc at d front of this thread and saw that acat u buy two MF

wanna ask does both ur fund is ab to cover d expenses of anual fee and also service charges?

any money go in

if u feel its too private u can pm me...thanks

i left out d interest

awww..... sorry ... my mistake....it shud b each of it FD for 6 month....

so, its shud b same money... i mean each of it earns 175 -> 175x 6 =1050

hmmm i bump to this statement from last time forummer.... wats ur opinion....

ok.. thanks for ur comment... btw, does "Rich Dad, Poor Dad" got electronic version? last time my fren recommend taht book to me... but i dun read it >.<'





can tell more ab banking stock? wats taht? something like shares?

sorry..dunno how to read chinese


btw, can u guide me on how to buy banking stock? or can u link me to any website on how this bankin stocks work? thanks...

it seems vry interesting ab this kind of stock...

act... i survey 1st wether to invest in bankin stock or UT....i not yet invest coz now im savind for bucket 2 money....

.i think wit d money i hav saved from when i was small, can let me survive,at least 4month..shud i use this money to put at FD?


btw, i was thinkin to put like around rm1.2k every 2 month in FD... is this ok? i noe its not too much coz i jus started work.... so that, d money that i sav can get some interest rather than nothing

ASB is something like ASW2020?
if yup, i think u better put into it.... coz non-bumi simply cant put money in it now!!!

btw, last time i put rm1000(if not mistaken) and each year got dividend around rm70-110 @.@

IMHO, d 1st step u shud do is learn to managing ur financial 1st b4 trying for investment in stock/ shares...