Looks like it... many ikan bilis will be shaken out during the first downturn last week. Now cat bouncing, next down will shake out more weak investors.

Until no more weak investors can be shaken.. then...

Now tengah "toing toing toing"

Tak lah.

Me and my investors already set the target.

Once reached, chow. Then new investment coming in based on new amount.

Hi all,

A newbie here... I've heard about a regular savings fund.
I was wondering how it works. I heard you'll need RM1k to open an account and then you can save RM100 each month.

I'm just curious how can we transfer the money to the account?

Hope to be enlighten.

Thanks.

Saving plan is only for those who can't save money. It's a forced saving. Saving plan usually has a maturity period to adhere to. Check out the details first before committing for it.

Online transfer via Maybank

Usually they'll ask you to sign up for auto debit or direct debit instruction.

No, they no ask me.

Prefer to manually transfer $$

Hello, everyone.

I'm not sure if this is the right place to ask for advice on bonds, but I have a question regarding this bond that was proposed by OCBC bank to me. It's called EASTSPRING Investment Target Income Fund 2.

Basically, minimum investment is RM30k. Tenure 3 years (close-ended).
Conservative return is about 4.5% p.a. Interest's paid out twice every half yearly.
Bank charges 3% fee, but if you keep the bond till the end of the period, you will get back your initial investment, meaning, you get back that 3%.
This bond is currently being offered until 12th of Aug, but I heard it's nearing subscription target and closing soon.

I'm not familiar with bonds, but is this how it normally works? And is this a good bond to buy?

you said: " you will get back your initial investment,"
read product highlight sheet...page 3 (last item)
http://www.eastspringinvestments.com.my/do...PHS%20final.pdf

That means that the capital is not even guaranteed or protected.

Thanks for both replies.

But the likeliness of the bond to go bust is quite low, right? Usually, bonds are meant to be the next lowest risk investment after the FD. I'm not sure though, that's what I heard before long time ago.

pink,

bonds DO go bust

Behaviour of bonds are typically like this...
+1, +2, 0, +1, +2

But when they DO go down, they hit hard, like,
-15

Bond has its own risks:

1. Interest rate risk
2. Default risk
3. Rating risk (upgrade/downgrade)
4. Forex risk (if invest overseas)

This post has been edited by David83: Jul 21 2013, 12:51 AM

Hmm, in this case...prolly I shouldn't go for it, huh The other consideration to me is, even if they pay out at 4.5% at the least, it doesn't seem like it's worth holding on 3 years period for that % of returns. Seems kinda low to me, especially with other uncertainties.

The reason why I was considering this is, I haven't tried buying bonds before. So, I thought of starting somewhere, but don't know which ones are the good types or maybe none are, lol

Bonds have its place in financial planning/investing, but if u invest in bonds expecting near-zero risk of loss, u better look elsewhere.

Generally, for a bond fund, they'll reserve a small portion of cash reserve for liquidity purpose - up to 5% of the fund reserve

It's meant for redemption purpose.

Thanks for all your replies. I'll reconsider on this. Initially I thought maybe I could set aside some for it, but doesn't seem like a likely option to go for.

Why i checked maybank and FSM, the SC rate is different, is that normal?

Of course it's different. FSM promises SC as low as of 2% for equity funds and 0% for bond funds (majority of them).