Thursday, August 28, 2008


You ONLY have two choices:

- By timing the market. i.e.: BUYING LOW AND SELLLING HIGH. Every investor knows that this is easier said than done because we are not in control of the market. However the majority of us are still applying this principle even though we know it is very difficult to time the market, and most of the time we get upset because we get it wrong. We may get it right sometimes not because we are great investment gurus; deep down inside our heart we know that we are just lucky. Since unit trust is a long term investment vehicle, we may have to do a lot of investment timing, ask ourselves, how many times can we be lucky? For those of us who are investing for retirement (EPF Members’ Investment Scheme) and for our children’s education, are we prepared to place our future and our kids’ future on luck? This strategy may not be that sound after all!

- By reducing our investment cost i.e. getting lower investment costs than the average price. Most of us are not able to practice the first strategy to get the best returns on our investment, but if we can consistently get lower investment costs, we will indirectly enhance our investment returns also. Remember, this strategy allows investors to be in the controlling position all the time; therefore it is not based on luck. But how does this investment method work? The secret is by applying a simple to follow method called RINGGIT COST AVERAGING PRINCIPLE (RCAP), which is applicable for unit trust investments. How does RCAP work? Invest a fixed amount on a regular interval for a long term. This investment method is most suitable for setting a retirement fund (EPF Members’ Investment Scheme) or children education fund. This strategy is easy to apply and also frees investors from monitoring the market.

Illustration of RCAP

We must recognise that unit trust price do fluctuate, because of this that we need to apply RCAP to reap the profit from our unit trust investment in the long run. For illustration purposes let assume the below price trend of a unit trust for easy understanding.

Cost per unit by applying RCAP: RM120, 000 / 270,500 unit = RM0.44

Using RCAP method investor managed to get 13 sen (RM0.57 – RM0.44) lower the than the average unit price. This represents 23% (13 divided 57) lower than the average price. In investment, every sen reduction in cost represents additional profit in future. See enclosed real life example how investor make a profitable investment in unit trust by simply applying RCAP.

Of course there will be investors who argued that if they managed to catch it at the bottom, they would reap better profit! Not necessary but it is true, if they can and dare to commit all the funds during that particular time and if they got it right. Maybe only a handful of investors managed and dared to capitalise on such situation as majority of us do have this herd mentality. Even that, you may not be able to commit all your fund at one time particularly if you are mobilising your EPF fund for such investment as there is predetermined formula that only allowed you to commit certain amount at a regular interval of 3 months.

For example:

Investor B, by applying RCAP, consistently investing on the regular interval regardless of the price movements, finally managed to invest a total sum RM120, 000 that generates 12% return p.a. On the other hand, Investor M managed to invest RM20, 000 that generates 20% return p.a. due to excellent timing. However leaving behind RM100, 000 earning a fixed interest of 7% p.a.

Conclusion, for a profitable unit trust investment and to achieve your financial goals without much hassle, apply the winning strategy – RINGGIT COST AVERAGING PRINCIPLE!

Wednesday, August 27, 2008

How To Maximise Your EPF Return

Before we explore the secret of turning your EPF saving into a powerful cash generating machine, let's understand tour EPF in more details.

As you are aware, EPF contributions made by employee and his/her employer are paid into the employee's EPF account. Each account comprises of two sub-accounts:

  • Account 1 - Savings for retirement at age 55. 70% of contributions are credited into this account.
  • Account 2 - Savings that can be withdrawn for the purchase of a house, mortgage repayment relating to a housing loan, education, medical expenses and/or pre-retirement withdrawal at age 50. 30% of contributions are credited to this account.
Since 1996, under certain conditions, an EPF member is entitled to make transfer from his/her Account 1 balance to an approved Unit Trust Scheme(UTS). The latest revision of the withdrawal policy has been enforced on 1st Feb 2008.

The EPF will process a request to transfer certain amount from member's Account 1 to an approved UTS if:
  • The Account 1 is not less than the predefined basic saving according to age group (Table 1)
  • The member is less than 55 years old.
  • An account in the approved UTS has been opened which the transfer can be process.
  • No transfer has been made in the previous 3 months from the EPF Member's Investment Scheme.
  • The amount eligible to transfer is not less that RM1,000.
  • The amount to be transfered is not more than 20% of the Account 1 balance remaining after deducting the predefined basic saving (subject to a minimum of RM1,000)
Table 1. Account 1 Total Basic Saving

After fullfilling all the above minimum requirement, you can start turning your EPF saving into a powerful money-making machine for your retirement. Let's look at the simulation below.

You are 28 years old, being paid for RM3,500 monthly of your job currently and has an accumulative EPF account 1 saving of RM30,000. Assuming that you start investing your EPF saving every 3 months and every year, into a UTS which offered a moderate annual return of 10% for the next 27 years, you will see the result simulation below.

You will have an extra of RM527,120 in your account when you retire at age of 55!
Thanks to the wonder of compounding interest, all this will be achieved passiveley by just investing 20% of your Account 1 balance into a UTS every 3 months.

The learning is simple. By investing your EPF saving into unit trust, you are going to expect an above average return in long run. If you start investing early, the possible return will be very much higher as the effect of compounding interest taken place. Of course, you will need to invest in good Unit Trust Scheme which managed by Professional Fund Managers.

So, what are you waiting for? Let's kickstart and move towards your ultimate dream of financial freedom.

Tuesday, August 26, 2008

10 most common investment mistakes

No.1 Investing at the peak of an economic cycle
It is always easier to invest when everything is rosy, when confidence is high and when your friends tell that they are making money. Worse of all, when you join in the fray, the bubble burst, so what do you do? You decide to stay out and let the investment value ride backup to recoup your capital. The problem is if you invest at the peak of cycle, it maybe another 5 years before you could see the peak again.

No.2 Taking advise from an ‘accurate source’
Most investment losses can be attributed to following third party “hot tips” and advice without doing homework. Some even claim they had insider information of that the news came from the horse’s mouth. It is sounds too good to be true, it is usually not true

No.3 Afraid to value cost when returns are negative
Value cost averaging is one strategy to average your cost and lower your investment’s breakeven point. For this strategy, you must have enough capital to value cost. You will give your investment vehicle enough time to come back up again, and most importantly, your investment vehicle must have the capability to rise in value eventually.

No. 4 Unaware of the status of investments
Many investors know exactly when their fixed deposits are maturing but have no idea when it comes to their more volatile and growth-oriented investment. Investment must be tracked more regularly than fixed income vehicles knowing their value and how they have performed over time helps you to seize opportunities to sell or accumulate more for value averaging purpose. However, do not monitor too frequently as it can cause you to panic and sell your winners too soon

No.5 Not having a required rate of return
Investors do not often set a target of return for their investment. Even if they do, they shift their targets as greed sets in, especially in bullish market. This can be dangerous as sudden event in the market can wipe out profits. What one needs to do in a bullish market is to sell the profits when the desired rate of return is met and continue to monitor the capital for further market upsides. However, if you are new or conservative investor, it is better to realize your capital and profit once your target rate of return is met.

No.6 Not Rebalancing Portfolios (switching)
During the 2003 war of Iraq, an investor announce that his investment planner had told him to switch his equity portfolios to bond as the war could be a potential danger to his equities. I met the same investor again at the end of year 2003, he said he had lost about 15% in his bond investment in the 2003 bond market crash

Unfortunately for him, rebalancing portfolio was done a single isolated event. He had forgotten that rebalancing must be done consistently in different cycles under which specific investments are exposed to. It is a good practice to rebalance the portfolios at the most twice a year, unless a sudden expected event occur

No.7 Focus on popular investment
Investors feel comfortable when they had invested in highly published. Some of these are good investments and are worth looking into but do your homework. Check if they suit your investment goals and time frame

No. 8 Focusing on guaranteed investment?
Having your capital guaranteed but you need to realize what they are guaranteeing, capital or returns? This promise of “capital guarantee” usually devices in our understanding of balancing the cost of other investment opportunities during the holding period against the security of not losing our capital at the end of tenure. Putting money into capital guaranteed fund is only suitable if you do not need the funds within the holding period and you have a diversified investment portfolio

No. 9 Not having an investment philosophy
It is just a simple statement of your style and taste. What allocations you have set, which type of risk you want to adopt and the time frame you have set to seek return in your investment portfolio. Having an investment philosophy will prevent you being overly greedy or overly fearful

No. 10 Transactional type of investment
For most of us, the only purpose of investment is to make the money. After that, what is the next, Your investment must be purpose driven, for example, to clear debts, funds a comfortable retirement or send the kids to college. Remember, greed, short term return is not a purpose

Wednesday, August 20, 2008

Dulu Gadis Pendiam Kini Perunding Cemerlang

*Dipetik dari laman web Utusan Online*


DALAM rekod penilaian bekas majikannya pernah menilai dia sebagai seorang pekerja yang baik dan cekap, tetapi lokek senyum dan berat mulut untuk bercakap.

Namun, siapa sangka wanita yang dulunya cukup pendiam dan lebih suka menyendiri, kini berubah serta boleh meraih pendapatan hingga puluhan ribu melalui kerjaya yang memerlukan dia banyak bercakap dan bertemu orang.

Saidatul Norhiyah Abdol, 33, sendiri sukar mempercayai dirinya mampu mencapai sehingga ke tahap sekarang. Apatah lagi apabila mengenang baru empat atau tiga tahun lepas dia sekadar seorang kerani biasa yang gaji setiap hujung bulan cukup-cukup untuk belanja sendiri dan sedikit dititip ke kampung.

“Bukan tidak bersyukur, tapi selepas sembilan tahun makan gaji saya tidak nampak apa-apa yang berubah dalam hidup saya.

“Bahkan, impian untuk memberi kesenangan kepada ibu bapa di kampung yang tertanam sejak sekolah lagi semakin kabur.

“Setiap kali balik kampung saya lihat garisan kedut pada wajah orang tua saya bertambah. Melihat itu saja saya jadi panik, takut tak sempat menunaikan hajat untuk sekurang-kurangnya menghantar mereka ke Mekah,” kata wanita berasal dari Behrang, Perak ini.

Sementelah sudah membuka kisah silam, Saidatul tidak malu mengaku dia lahir dan dibesarkan dalam keluarga yang susah.

Bapanya hanya berkerja kampung yang pendapatan tidak sampai pun RM300 sebulan bagi menanggung sembilan anak.

“Bayangkan seterika pun kami tak mampu beli sedangkan waktu itu (sekitar tahun 1980-an) orang lain sudah ada macam-macam alat elektrik.

“Setiap malam kami adik beradik akan letak baju bawah tilam supaya baju nampak licin bila ke sekolah,” katanya sayu.

Sebagai anak kedua, Saidatul sanggup melupakan impian menjejak kaki ke universiti bagi memberi peluang saudara sulongnya meneruskan pengajian.

Sebaliknya, dia memberanikan diri memperjudi nasib di kota bagi mencari pekerjaan yang sepadan dengan kelulusan.

Sekadar berbekalkan Sijil Pelajaran Malaysia, dia hanya mampu meraih jawatan kerani di sebuah syarikat insurans dengan gaji yang sebahagiannya dihantar ke kampung.

“Bagaimanapun, bekerja tidak menumpulkan minat saya untuk belajar. Secara sambilan, saya masuk kelas dan mengambil macam-macam jenis peperiksaan berkaitan bidang insurans dan kewangan.

“Saya fikir dengan cara itu saja saya dapat sekurang-kurangnya menambah angka pada slip gaji,” katanya.

Sembilan tahun berusaha, empat kali bertukar majikan, namun perubahan yang berlaku tidak seperti yang diharapkan.

Saban hari jiwanya meronta untuk berbuat sesuatu yang dapat mengubah kehidupannya sekali gus nasib ibu bapa di kampung.

Bagaikan diatur-atur, Saidatul berkenalan dengan Azizah Saad, salah seorang perunding unit amanah paling berjaya dan telah sampai ke tahap Pengurus Agensi Kumpulan di Public Mutual, yang kemudian mengajaknya untuk sama-sama menerokai bidang tersebut.

“Mulanya saya buat secara sambilan, tapi kemudian saya fikir setakat sebelah kaki tidak akan bawa saya ke mana. Saya nekad berhenti kerja untuk menyertai unit amanah secara serius,” katanya.

Kebetulan waktu itu, perkahwinan yang dibina seawal usianya 22 tahun menemui titik noktah dengan dikurnia seorang anak perempuan yang kini berusia lapan tahun.

Kegagalan rumah tangga juga ibarat wake up call yang mengembalikan ingatannya pada janji yang pernah dibuat sewaktu mula berkerja dulu.

“Saya pernah bertekad pada diri sendiri untuk menyenangkan orang tua saya. Tetapi jodoh sampai lebih awal membuatkan sedikit sebanyak fokus saya beralih arah.

“Mungkin ini hikmah di sebalik kegagalan tersebut. Kalau pun tidak kerana janji itu, saya ada anak yang perlu diambil kira. Semua itu menjadi penyuntik semangat untuk saya bangun dan berusaha demi kelangsungan hidup kami dua beranak,” katanya.

Begitu pun, kerjaya baru yang dipilih tidak semudah diduga, malah enam bulan pertama bersama unit amanah tempoh yang cukup mencabar bagi Saidatul. Bermula dengan kosong, dia banyak bergantung pada ‘mentornya’ dengan mengikut apa saja yang mereka buat.

“Ibaratnya macam anak ayam mengikut ke mana saja ibunya bawa.Tapi saya tak kisah sebab masa itu memang masih mentah dan banyak perkara yang perlu dipelajari,” katanya.

Biarpun dalam keadaan masih ‘bertatih’, selepas enam bulan pertama itu, Saidatul mampu membuat jualan sebanyak RM850,000 dengan pendapatan purata hampir mencecah lima angka sebulan.

Lebih bermakna genap setahun bergelar perunding unit amanah, dia berjaya memenuhi impian menghantar orang tuanya ke Mekah menunaikan rukun Islam kelima.

“Sebagai anak, saya rasa itulah detik paling bermakna dan saya bersyukur kerana dapat menghantar mereka ke Tanah Suci dalam keadaan mereka masih sihat dan kuat,” katanya.

Mencecah jutaan

Kini, biarpun baru dua tahun menjadi perunding unit amanah sepenuh masa, jualannya sudah mencecah jutaan ringgit dan beberapa kali memenangi cabaran yang diberikan oleh syarikat.

Bagi Saidatul segala-galanya berkat kesungguhan mengikut latihan serta tunjuk ajar daripada para senior yang tidak jemu-jemu membimbingnya.

Justeru, perkara yang sama dilakukan terhadap ejen-ejen baru yang dibimbingnya sekarang agar mereka dapat mengecapi kejayaan sebagaimana yang beliau nikmati.

“Kerjaya ini amat bergantung dengan kerja berpasukan, selain kesediaan untuk belajar dan terus belajar,” katanya yang tampil elegan dengan jaket pendek dan seluar panjang.

Dia yang kini mencapai tahap pengurus agensi telah merekrut lebih 20 ejen yang masing-masing sedang aktif mengorak langkah.

Berkongsi petua kejayaan, kata Saidatul, selain mahir dengan ‘produk’ yang mahu dijual, semangat dan tekad perlu kuat serta tahan menghadapi kegagalan.

Katanya, tidak semua pelanggan yang ditemui akan menerima produk yang dicadangkan, malah daripada 10 mungkin hanya dua atau tiga yang menerima.

“Waktu itu kita perlu bersedia menerima penolakan, jangan cepat mengaku kalah. Saya sendiri, sudah tidak terbilang berapa kali menangis dalam kereta lebih-lebih lagi apabila bertemu dengan pelanggan yang ‘lepas cakap’.

“Tetapi saya akan pastikan rasa kecewa atau sedih itu habis di dalam kereta dan tidak terbawa-bawa hingga menjejaskan kerja seterusnya.

“Apa yang selalu saya ingat, niat saya memberi produk yang terbaik, kalau pelanggan tak mahu itu hak mereka,” katanya yang turut mencabar golongan muda lebih-lebih yang menganggur untuk menyertai bidang tersebut sebagai permulaan mengubah hidup kepada yang lebih baik.

Apakah sebenarnya unit amanah?
* Skim pelaburan kolektif yang diurus secara profesional dengan mengumpulkan wang seorang individu dan ribuan pelabur lain.

* Pengurus pelaburan yang pakar akan melaburkan wang tersebut bagi pihak pelanggan untuk mencapai sasaran yang ditetapkan mengikut matlamat pelaburan dana tersebut

* Perunding unit amanah (UTC) membantu pelabur merancang simpanan dalam tempoh sederhana (tiga tahun) dan jangka panjang (lebih lima tahun).

* Pelan perancangan simpanan mesti bersesuaian dengan individu tersebut.

* Pelaburan dalam unit amanah ada turun naik mengikut harga pasaran, tetapi risikonya rendah dan boleh mengendalikan risikonya dengan baik

* UTC yang komited dan terlatih akan membantu pelanggan mencapai matlamat pelaburan tersebut.

malaysia, youth
contribute, give
alone, friends

Tuesday, August 19, 2008

Chance for you to increase the return of your EPF savings

Beginning 1 February 2008, 11.4 million EPF members can invest in unit trust, as long as their account 1 amount exceed the required savings amount.

The basic amount that each members have to have is based on their age:
1) 25 years old (RM8,000)
2) 30 years old (RM18,000)
3) 35 years old (RM29,000)
4) 40 years old (RM44,000)
5) 45 years old (RM64,000)
6) 50 years old (RM90,000)
7) 55 years old (RM120,000)

The basic quantum of saving will be access every five years.

Example of calculation: Ali is 30 years old and has RM30,000 in account 1. For 30 years old the basic saving/min that they must have in account 1 is RM18,000. So the amount that he can invest in UT is 20% from (RM30,000 - RM18,000 = RM12,000), amounted to RM2,400. The investor still will have to pace their saving to every 3 months. Same as before.

Table below show the real return that you as EPF member get from EPF savings:

Did you know? Most Employees Provident Fund (EPF) savings will be finished after 3 years of retirement. Below is a table showing an estimate amount of EPF savings.

A - Factory worker that starts contributing at the age of 18 with starting salary of RM600 a month.

B - Factory worker that starts contributing at the age of 18 with starting salary of RM1000 a month.

C - Graduate that starts contributing at the age of 23 with starting salary of RM1500 a month.

D - Graduate with Master Degree that starts contributing at the age of 25 with starting salary of RM2500 a month.

E - Professionals that starts contributing at the age of 25 with starting salary of RM3000 a month.

Assumption : Contribution rate- 23 percent; Dividend Rate- 5 percent; Salary raise rate- 3 percent a year; Member contribute until 55 years old; Account is fully withdrawn.

Source: Financing challenges facing social security schemes: The experience of the Employees Provident Fund of Malaysia, Rusma Ibrahim, ms. 9

For a male factory worker B, if his living cost is RM800 per month then when he is 55 years old it will be RM 3,414.47 a month because of the Malaysian 4% a year inflation rate. So if you have RM374,112 at the age of 55 years old (already retired) and invest all the money back to get return rate of 8% a year, the money will be spend totally by the age of 66 years old when your living cost is RM 3,414.47 a month .

But according to statistic Malaysian man lifespan is 70.4 years. So you will have 4 more years without money. This illustrate that EPF money is not enough to support your live after retirement.

So, additional saving other than EPF is very important for your golden years. Like Malay old folks saying, "To make ready the umbrella before the rain start". If we save a lot consistently while we are still strong to work, we don't have to work during our retirement years. We can concentrate on doing what we love and for Muslim, have more time for prayer and amassing good deeds.

Friday, August 1, 2008

Be A Unit Trust Consultant

My dearest friends,

- Tired of load of works without being properly REWARDED?
- Wanted to achieve FINANCIAL FREEDOM?
- Wanna be the BOSS at your workplace?
- Wanna have more TIMES with your families & loved ones?
- Wanna have CONTROL / OWN on your own life?

I sincerely would like to share this golden opportunity with all of you, a career as a UNIT TRUST CONSULTANT with the Malaysia's largest private unit trust company, PUBLIC MUTUAL BERHAD .


Because you would be entering a green field industry in Malaysia with awesome upside potential.

As at end March 2004, India's equity penetration rate (which can be defined as the combined value of all assets managed by a country's unit trust industry DIVIDED by its total equity market capitalization) was 12% (sources: Association of Mutual Funds in India, and the Bombay Stock Exchange).
The UK's was 34% (sources: London Stock Exchange, and Investment Management Association, UK) .

Ours? Only 10.84% (as at end March 2004). (Source: Securities Commission).

Ratio of Unit Trusts : Fixed Deposits is 6 : 1.

Translations: There's room to grow!

source:Bank Negara Msia, Monthly Statistical Bulletin March 2004 : The Edge-Lipper Fund Table, 10/05/2004.


- Because we're the biggest and best!
- More than 2 decades of fund management experience in Malaysia.
- Won a string of fund management awards ; from just 1999 through to 2004, we brought back 27 of those - including 10 in year 2004. As at 31 March 2004. Source : The Edge-Lipper Fund Table, 10/05/2004

- Majority-owned & backed by the solid Public Bank Group. Highest (28% market share) of private unit trust sector. We exist to serve our investors and consultants.


A lot! The highest annual remuneration ever achieved by our unit trust consultants was RM1, 542, 441!
The highest passive annual income (residually earned from prior sales while that active agent was busy elsewhere selling to new Public Mutual account holders!) paid out to a Public Mutual unit trust consultant was RM 67,803.
Free holidays.
Peer recognition.
Free insurance.
Many more!!

We'll support you with a suite of:
Financial planning tools
Sales tools
Best-in-class training
Greatest range of Malaysian unit trust products under a single roof.

Minimum requirements:
- At least 21 years of age
- At least SPM qualification

Interested? Please contact me;

herwan at 016-326 1124
or YM at