If that was your life savings you would not have priority banking. Priority Banking means at least a few hundred thousand in the bank



Did not jump to any conclusions, it is quite logical to assume that someone with Priority Banking is rich, otherwise bank would not provide you priority banking services

Anyway, don't you guys rather try for larger amounts on the other funds? I mean instead of giving people so much trouble trying and trying for Rm10, Rm100 etc. Why not just dump it in a commercial fund? really what is the big difference in commision cost between Rm100 in a commercial fund, and Rm100 in ASW? all this trouble to save Rm2

If you look at all of PNB's funds, all started at Rm1, now all except one is 1.18-1.36, but all the fixed-price funds still stuck at Rm1.. but everyone wants to buy that lol

This post has been edited by wodenus: Mar 12 2014, 06:29 PM

OK lah, let us not make this into the email version of the US Open Tennis!

If I borrowed RM0.x million and bought an S Mercedes, am I rich? Same thing with the Priority Banking customers thing. Look deeper.

On the subject of "rich", how much is considered rich? 100K, 500K, 1 million, 10 million, 100 million???

One way to gauge is this formula (I think from the book The Millionaire Next Door)

One is wealthy when B is > 2 * A

A = age * annual income /10

B = net worth (i.e., assets - liabilities)

Then it is not a number for all but relative to one's income & expenses (one's lifestyle).


Speaking for myself, I am into ASX because it is about 2 times higher than FD.

Not into fund (I assume you meant things like UT) because of the annual management fee they charge even when the fund is loosing money! And I prefer to stay out of UT/shares now due to the volatile economy. So ASX is the best parking lot for me now (no, I am not driving a Bentley).

On fixed price vs variable price funds, fixed is better for me as I know I will be getting X% per year in dividend and not worry about the price. There are some shares in KLSE where they give one x% dividends but still making a lost due to the declining share prices. So work within my money risk profile.

My 3.8 cents.

Cheerio.

But then you got to worry about the dividend, it's not a given that there will be a dividend even, or what the dividend will be. You do realize that a fixed price fund is still a unit trust fund right? you can deal with a variable dividend, but you can't deal with a variable price (which is actually, probably less volatile than the dividend?)

That's just weird. Fixed-price funds have a management cost too, it's just buried in the dividend

with equities/UT, you may get a return of 10%pa or more, but you can also lose/get negative.

The fixed price ASM/ASW ,you can't get negative. Always above 6% pa.
Any surprise people are chasing that?

give me a 10% return with potential loss, i would go for a fixed 6%.

Fixed pricing funds is suitable for investors with low risk tolerance together with almost guarantee annual dividend

Normally people start from fixed pricing fund then slowly move towards variable pricing fund, lastly invest into equities & forex.

why people start from fixed pricing fund because maybe they lack of investment knowledge & need low risk investment to start of first

some people who already invested in equities also invest in fixed price products because if equities make losses, the fixed price fund can "cover" some of the losses

This post has been edited by davinz18: Mar 12 2014, 11:11 PM

Strongly agree with what you have said above. Based on my experience, I know a few people that just wouldn't want to loose too much money on high risk investments due to the fact that they do not know much about the product well.
A person wouldn't mind just getting about 3.00++ on FD knowing that their investment is 100% guaranteed rather than putting it in a riskier investment like unit trust or playing with forex.

Person A may only have a total savings of RM10,000 and he/she wouldn't have the capacity to invest in a risky investment that has a high chance of him/her loosing their entire savings.

However, someone that has RM100k wouldn't mind putting in a certain percentage of his savings into a riskier investment as he has the capacity to do so.

In short, it could be said that the higher an individuals savings is, the higher the risk that that individual would be willing to take.

We need to also see age group. Some people with high individual saving with older profile also don't take big risk. They tend to invest in low risk investment. That's why u see mostly uncle & aunties queuing when any fixed pricing fund is launch or on normal days "top-up"

Yeah there's many factors that would be taken into account when an individual chooses to invest in.

just wondering, would you guys consider those insurance saving plan?

Mind to share more info?

What he means I guess is about those plans by AIG that requires you to pay a premium of a certain amount for let's say 10-15yrs.

To me, the ASX dividends have been better, reliable and consistent (vs most UTs).

Yes, you are right, there is also management fee in the ASX (had a look at their annual report leaflet). But so far they have been delivering to the unit holders.

If I remember correctly, over the past 20 yrs, there was only 1 year where the FD rate was higher than the ASX (the financial crisis in 1998?).

Plot a graph of ASX dividends, FD rate and some common UT dividends and you will see the difference. It is not the best but more reliable.

Closing this at my end. Cheerio.

Yeah, something like that...maybe they will add on some Critical Illness coverage...but just wondering how many % they able to give us? they always showed us 2 columns, one is lower % and the other one with higher % (if they perform well)

Do these kind of saving plan attracted to you guys? personally, I don't really fancy it due to they have certain maturity date to comply before you can withdraw the money hence limited the flexibility as compared to ASX fund...am i right?

Yes it does not seem like a good deal, I calculated it once, it was like 1-2% per year, and that was their best case scenario if people want insurance they should buy insurance, if they want to invest they should invest. All these hybrid plans, not enough coverage and also not enough return

My only advice to you is that you would have to really check on the actual effective rate of return. They could say that you could earn up to 12%p.a but that's not tha case when your investment expires.
I would only opt for insurance companies when I'm looking for stuffs such as insurance products (life,health,etc) and not for saving products.
That's just my point of view. Others may strongly disagree with my view.

M on same page with u

Agreed with your statement

Should i cancel the contract/agreement?or shall i continue but donate whole the money to charity after 25 years and keep my capital (RM89700 or RM50000?)bcuz it's my right ?

This post has been edited by Nursh: Mar 13 2014, 04:42 PM

It really up to you. If you cannot live with it knowing that it is a riba, then cancel it. But normally you will have to pay penalty etc.