Saw some discussion here on getting ASX on the 1st day of the month. Asking myself is it really that critical to get in on the 1st day, how much will I loose out if not successful etc.
Pardon me for my simplified assumptions.
Suppose I have RM10,000 to work with, in ASX or FD.
AA
If I could get it into ASX on the 1st day of the month, jolly good! See green line.
BB
If I decided to put it in FD, see red line.
CC
If I failed on the 1st day of the month in ASX, I try again for the remaining 29 days and managed to get in. See blue line.
I am surprised that it takes about 30+30+12 = 72 days for ASX to break even with FD if one fails to deposit into ASX on the 1st day of the month. Actually, it is 3 months as they do not calculate the interest on daily basis but monthly. I have ignored the case where one puts the money for some daily interest while waiting for ASX.
Despite the 3 months breakeven period, I will still try to get it on any day of the month if my 1st day attempt is unsuccessful. Ha.
Cheerio.
P/S Does not matter whether the amount is 1,000, 10,000 or xxxxx. The breakeven period is the same.