Beauty of Long-Term DCA Investing

No. of Years	Total Investment (RM)	Total Income Earned (RM)	Total Fund Value (RM)
1	5,300.00	407.59	5707.59
2	7,100.00	1,022.27	8,122.27
3	8,900.00	1,863.45	10,763.45
4	10,700.00	2,952.41	13,652.41
5	12,500.00	4,312.36	16,812.36
6	14,300.00	5,968.74	20,268.74
7	16,100.00	7,949.35	24,049.35
8	17,900.00	10,284.61	28,184.61
9	19,700.00	13,007.79	32,707.79
10	21,500.00	16,155.27	37,655.27
11	23,300.00	19,766.86	43,066.86
12	25,100.00	23,886.09	48,986.09
13	26,900.00	28,560.59	55,460.59
14	28,700.00	33,842.44	62,542.44
15	30,500.00	39,788.62	70,288.62
16	32,300.00	46,461.44	78,761.44
17	34,100.00	53,929.07	88,029.07
18	35,900.00	62,266.07	98,166.07
19	37,700.00	71,553.99	109,253.99
20	39,500.00	81,882.03	121,382.03
21	41,300.00	93,347.77	134,647.77
22	43,100.00	106,057.92	149,157.92
23	44,900.00	120,129.23	165,029.23
24	46,700.00	135,689.38	182,389.38
25	48,500.00	152,878.02	201,378.02
26	50,300.00	171,847.93	222,147.93
27	52,100.00	192,766.21	244,866.21
28	53,900.00	215,815.61	269,715.61
29	55,700.00	241,196.06	296,896.06
30	57,500.00	269,126.22	326,626.22

Risk Profile	Moderate
Initial Investment	RM3,500.00
Saving Period	30 years
Rate of return	9.0% per year
Additional investment	RM 150.00 per month
Recommended Fund	PB Balanced Fund

However i need to clarify that this illustration is supplied in response to your specific request and is for your use only. It is based on hypothetical future inflation rates and investment performance. The illustration is intended as a financial planning tool to assist individuals in their financial planning. There can be no assurance of future performance as actual returns will fluctuate with market conditions. The illustration reflects compounding at a hypothetical fixed rate of return and rate of inflation and is not intended to project the performance of any specific investment vehicle. Please note that periodic investing does not ensure profit and does not protect against loss in declining markets.

Many people invest but only some become wealthy. Why?

The mistake many people make when investing is that they treat their investment as saving.

So what is the difference between saving and investing? Saving is what you do to build up funds for something, like a holiday, and when you have the amount saved you withdraw your capital from your investment and spend it on the holiday. After the holiday you have nothing left, and start the process all over again.

But building wealth is different. People who want to build wealth invest their money for the long term in 'growth assets' such as shares and property.

Their strategy is to spend the income that the investment produces, but to leave the capital invested. They don't withdraw the capital, so it stays there growing and compounding, and producing more and more income each year.

If you do this it will take you quite a while longer initially to get to your investment goal , but in the long run you will find that the extra wait has been worth it. As the years go by, you will have an increasing additional income stream from your investments and your standard of living can rise accordingly!

Investment Goals

Through out the time, we keep on mentioning about investment goals and our investment vehicles must be tailored to suit our investment goals. But then do we really know how to draw out our own investment goals and the quantum of each goals ranging from short, medium to long term.

And here is some examples of Investment Goals :

Short term (1-3 years)

• Overseas holiday
• Car
• Taking time off work to care for a baby

Medium term (3-7 years)

• Deposit on a house
• Boat
• A sabbatical or extended break from work

Long term (7+ years)

• Childrens' education
• Holiday house
• Retirement/early retirement

There is one thing we need to take note of is the key to successful investing which include identifying your investment goals, and the time frame over which you will invest. When you already have an investment goal well drawn out, you are in a head start for a successful investment. :)

Investment 101- Basic Investments that you and me should know

Throughout our life, we often found that our investment objectives do change. As for young investors like me and you who are now working and being able to generate a steady stream of income annually, capital appreciation may be more important for us. However when we are closer to our golden retirement years, risk-free fixed steady income is more important.

It is a good thing that we do know how to determine and when to change our investment objectives, but what kind of investment portfolio does matches our investment objectives time to time...

Keep read on and learn a few investments in Malaysia that i feel we should know :) 

-Annuity

-Common Stock

-Corporate Bond

-Life Insurance

-Money Market

-Mutual Funds

-Real Estate & Property

-Real Estate Investment Trust (REITs)

Amanah Saham Bumiputera

After the press release saying that thru Maybank2u.com you can buy additional ASB units, i think it is time to see what does ASB offers.

Fund Information:

Fund Name	Skim Amanah Saham Bumiputera
Type	Income
Category	Equity
Launch Date	January 2, 1990
Objective	To generate long-term, consistent and competitive returns to the Unitholders whilst ensuring the preservation of capital at minimal risk tolerance level.
Potential Investors	Those who understand investment risk and reward and expect to benefit from long-term growth of the Fund through re-investment of distribution (if any) as well as to receive regular income (if any) on their capital.
Eligibility	MALAYSIAN BUMIPUTERA
Investment Manager	Permodalan Nasional Berhad

---

Transaction Information:

Price per Unit	RM1.00
Form of Investment	Investment book, Certificate
Minimum Initial Investment	Investment book-10 units
Minimum Additional Investment	Investment book- 1 units, Certificate- in multiple of 1000 units
Maximum Investment	Children Acc- 10000 units, Adult Acc- 200000 units
Approved Fund Size	UNLIMITED
Sales Charge and Redemption Charge	NONE
Payment of Redemption	On-the-Spot redemption
Cooling Off Period	None
Financial Year End	December 31

---

Fund Performance- Year end December 31 06 07 08

Net distribution per unit (sen) 7.30 8.00 7.00

Bonus per unit (sen) 1.25 1.00 1.75

MAYBANK AND PNB LAUNCH MALAYSIA’S FIRST ONLINE FACILITY FOR ASB INVESTMENTS

APRIL 20, 2009.

JOHOR BAHRU - Maybank and Permodalan Nasional Berhad (PNB) today jointly launched Malaysia’s first online facility for making additional investments in ASB units. With this facility, ASB investors can top up their ASB account online via Maybank2u.com, without the need to visit a Maybank branch or Amanah Saham Nasional Berhad’s (ASNB) office. 

This new service was launched today by the Prime Minister of Malaysia, Dato’ Sri Mohd Najib bin Tun Haji Abdul Razak, after the official opening of the Minggu Saham Amanah Malaysia (MSAM) in Johor Bahru. 

Also present at the event were the Deputy Prime Minister, Tan Sri Dato’ Haji Muhyiddin bin Mohd Yassin, Menteri Besar of Johor, Dato’ Haji Abdul Ghani bin Othman, PNB Chairman, Tun Ahmad Sarji bin Abdul Hamid, its President and Group Chief Executive, Tan Sri Dato’ Hamad Kama Piah Che Othman, Maybank Chairman Tan Sri Mohamed Basir Ahmad and President and CEO Dato’ Sri Abdul Wahid Omar. 

The new service marks a milestone as it offers ASB investors the convenience of making additional investments via Maybank2u.com from anywhere in the world. Another unique feature of this service is that it accepts additional investments to third party ASB accounts, thus allowing family members or guardians to invest for their loved ones. 

Tun Ahmad Sarji said that the new service underscores PNB’s commitment towards making unit trust investment accessible to all. “The digital generation is comfortable with using the internet for all manner of transactions, so this step is timely in capturing the evolving needs of a new generation of Malaysians. We’re happy that Maybank is willing to work with us to achieve that goal.” 

Tan Sri Hamad Kama Piah said that going online was part of PNB’s ongoing effort to fulfill its mandate. “We take our socio-economic objectives very seriously and providing an online service for investment was a logical step to take. We had the same objective in mind when at our own cost we computerised the Post Office back in the 1980s, so that Malaysians could invest no matter how remote the location. We want to achieve an investment savvy society, and reducing the barriers to investment is a key component of that goal.” 

“So we are very honoured to have the YAB Prime Minister launch this service at MSAM, because it is part and parcel of the same strategy, our “ White Ocean ” strategy of achieving social goals through value innovation. Value innovation here is to continuously create value for our investors by always moving forward with our products and services. MSAM contributes by providing a platform for information and education on financial planning and investment, and at the same time showcasing the technologies made available by service providers that can make investment less time-consuming and complicated. Through the exhibits and the myriad activities we have planned for this week, we want to make sure that Malaysians, especially our youth, have the knowledge and facilities as well as every opportunity to plan for their own financial freedom.” 

Meanwhile, Tan Sri Mohamed Basir said that the new service will appeal to those who are technologically inclined as well as encourage other investors to become more savvy by leveraging on technologies for their investment needs. 

“We are pleased to work with PNB to offer this innovative alternative for investors to increase their ASB investments,” he said. “Given the continuous interest in ASB unit trusts among the public, this new service will certainly reinforce Maybank’s leadership in online banking for which we command over 54.8% of market share today.” 

Maybank President and CEO, Dato’ Sri Abdul Wahid Omar said, “The introduction of this service offers an efficient and safe electronic payment alternative as investors do not need to travel to PNB agent offices or carry cash when making additional investments. They also do not need to queue or wait to be served at the counter. They are not restricted by locality to invest and can even ask their loved ones to do for them.” 

“Maybank offers the largest network of over 380 branches where the public can make investments in its ASNB stable of unit trusts and we will work with ASNB to provide even more valued added services to investors in the future,” he added. “Our users have benefitted tremendously from Maybank2u.com which today offers an array of services, including payments to the largest number of payee corporations which number 700. Business partners on the other hand, benefit from our large customer base of over 3.6 million internet banking users.” 

Investors who wish to use the online service must register as a Maybank2u.com customer and have an active ASB membership number. The investor is only required to enter the ASB membership number, a security Transaction Authorisation Code (TAC) and select his savings or current account to pay for the additional purchases. All successful transactions can be printed for record. 

The minimum investment amount is RM1 and the maximum is RM200,000 subject to the investor’s purchase limit and funds available in the customer’s savings/current account. The new service currently only allows for additional investments and in this first phase is available online from 12.01 am to 5 pm ( Federal Territory working days). Those who wish to view their investment status or make withdrawals are still required to go to any Maybank or ASNB offices.

CIMB-Principal China Recovery Structured Fund (Part 2)

This is the breakdown of the CIMB-Principal China Recovery Structured Fund

Fund type	Structured Product/ Income
Investment Manager	CIMB- Principal Asset Management Berhad
Launch Date	20 April 2009
Fund Size (units)	300 million units

Distribution Policy

Subject to the availability of income for distribution, the Manager aims to make annual distributions. The distribution will be declared on the last Business Day of the financial year-end or such other later date as the Manager will determine from time to time (each a “Distribution Period”).

Investment Time Horizon	5 Years

Initial Investment 

Minimum RM10,000 or multiples thereof, or such amounts as the Manager may from time to time decide. Please note that investment is only accepted during the Offer Period.

Additional Investment 

Minimum RM10,000 or multiples thereof, or such amounts as the Manager may from time to time decide. Please note that additional investment is only accepted during the Offer Period.

Redemption / Withdrawal

20,000 units or multiples thereof, or such amounts as the Manager may from time to time decide. You need to keep a minimum balance of 20,000 units or such amounts as the Manager may from time to time decide. There is no restriction in the frequency of withdrawal.

Cooling-Off Period

You have six (6) Business Days after your initial investment (i.e. the date the application is received by CIMB-Principal Asset Management) to reconsider its appropriateness for your needs. Within this period, you may withdraw your investment at the NAV per unit on the day the units were first purchased and have the Application Fee repaid. Please note that the cooling-off right is only given to an investor who is investing with CIMB-Principal Asset Management or any Approved Distributor for the first time. However, corporations/institutions, CIMB-Principal Asset Management’s staff and person(s) registered to deal in unit trust of CIMB-Principal Asset Management or any Approved Distributor are not entitled to the cooling-off right.

Annual Fee

  Application Fees: Fixed at 1.5% of the Initial Offer Price per unit

  Management Fee: Nil

  Trustee Fee: 0.08%* per annum of the NAV
 
  * Subject to a minimum fee of RM18,000 per annum

Switching Fee

No switching facility is available for this fund. Hence switching fee is not applicable.

Campaign

Early Bird Promotion* : Invest between 20 April - 8 May 2009 and enjoy 2% p.a. interest.

Bundling with CIMB-Principal Greater China Equity Fund.* 

Enjoy a low sales charge of 2.5% for investment into CIMB-Principal Greater China Equity Fund.

 FREE limited edition Royal Selangor Tumbler* for every RM50,000 investment.

* Terms and conditions apply.

CIMB-Principal China Recovery Structured Fund

Today CIMB officially launches the new structured product namely CIMB-Principal China Recovery Structured Fund.

Story write up taken from Bernama

KUALA LUMPUR, April 20 (Bernama) -- CIMB-Principal Asset Management Bhd expects its newly-launched fund, CIMB-Principal China Recovery Structured Fund, to provide higher returns than the current fixed-deposit rate despite uncertainties in the global markets.

Chief executive officer J. Campbell Tupling said the fund rides on China's economic recovery.

"Sentiments in China are slowly improving with its US$585 billion stimulus plan. Positive developments are visible in major sectors encompassing infrastructure, housing, innovation, health and education.

"This will enable China to chart high growth potential," he said at the launch of the fund.

Tupling said the fund has an approved fund size of 300 million units with an initial offer price of 50 sen per unit.

He said at least 95 per cent of the fund's net asset value will be invested into China's recovery structured product while the remaining in liquid assets.

"The fund aims to provide investors with regular income over the tenure of the fund and may potentially provide higher returns than the current fixed-deposit rate," he added.

Minimum investment for the fund is RM10,000. The fund is open for investment for 45 days and closes on June 3.

-- BERNAMA

Amanah Saham Malaysia

Since tomorrow the ASM will be on sale, i think i shall start with what is ASM :)

FUND INFORMATION

Fund Name	AMANAH SAHAM MALAYSIA (ASM)
Type	Income
Category	Equity
Launch Date	April 20,2000
Objective	To provide Unitholders with a long-term investment opportunity that generates regular and competitive returns through a diversified portfolio of investments.
Potential Investors	Those who understand investment risk and reward and expect to benefit from long-term growth of the Fund through re-investment of distribution (if any) as well as to receive regular income (if any) on their capital.
Eligibility Malaysian	Akaun Dewasa (18 years and above) Akaun Bijak (18 years and above as Guardian for minors age 6 months old and above but below 18 years)
Investment Manager	Permodalan Nasional Berhad

---

TRANSACTION INFORMATION

Price per Unit	RM 1.00
Form of Investment	Investment book
Minimum Initial Investment	Investment book - 100 units
Minimum Additional Investment	Investment book - 1 unit
Maximum Investment	Unlimited, subject to availability of units of the Fund
Approved Fund Size	7.7 billion units
Sales Charge	None
Redemption Charge	None
Form of Investment	Investment book
Payment of Redemption	On-the-spot
Cooling-off Period	None
Financial Year End	March 31

---

FUND PERFORMANCE

Year End 31 March	2005	2006	2007
Net Distribution per unit (sen)	7.20	6.75	6.80

It's all about ASNB

AMANAH SAHAM NASIONAL BERHAD (ASNB), is the Management Company of ASN, ASN 2, ASN 3, ASG Pendidikan, ASG-Kesihatan, ASG-Persaraan, ASB, ASW 2020, ASM and ASD, a wholly-owned subsidiary company of Permodalan Nasional Berhad (PNB).

ASNB was established on May 22, 1979 , to manage the unit trust funds launched by PNB. Having been in the industry for more than 25 years, ASNB has confirms to maintain its position as a leading unit trust manager, controlling more than 40% of the total units in circulation.

We are a premier investment organisation committed to enhance the economic wealth of the Bumiputera community in particular and contribute towards the growth and prosperity of the nation for the benefit of Malaysians.

Here are the NAV of the Unit Trusts managed by ASNB

TODAY'S PRICE :20 APRIL 2009

Fund	NAV(RM)	Service Charge(%)	EPF Charge(%)
ASN	0.5927	5.00	-
ASN 2	0.8667	5.00	3.00
ASN 3	0.9199	5.00	3.00
ASG-Pendidikan	0.7948	5.00	3.00
ASG-Kesihatan	0.8120	5.00	3.00
ASG-Persaraan	0.8430	5.00	3.00
ASB	1.0000	-	-
ASW 2020	1.0000	-	-
ASM	1.0000	-	-
ASD	1.0000	-	-

PNB launches additional units of ASM and ASW 2020

TAKEN FROM THE STAR 20/040/09

JOHOR BARU: The net inflow of money into unit trusts has been healthy despite the current global uncertainties with RM5bil invested in Permodalan Nasional Berhad (PNB) related funds as of this year.

Prime Minister Datuk Seri Najib Tun Razak said this was in stark contrast to the scenario during the 1998 financial crisis, which saw withdrawals of almost RM1bil every month from unit trust schemes.

“That was a very worrying period for the country and we learnt many useful lessons from that crisis.

“However the same phenomenon has not occurred this time as there have not been withdrawals from unit trust schemes,” he said.

Najib, who described it as an encouraging achievement, said that PNB enjoyed a net inflow of more than RM10bil into its funds last year, something the country could be proud of, considering the economic uncertainties.

He was speaking at the launch of Amanah Saham Malaysia Week here Monday.

He also announced additional units for two PNB-managed funds including an additional 2.22 billion units for Amanah Saham Malaysia beginning Tuesday, and two billion units of Amanah Saham Wawasan 2020 from April 27.

The maximum allowed per investor is 20,000 units, he said.

Najib said that PNB had a total of 9.3 million unit holders, with a total investment of RM87bil.

He also noted that PNB’s investment strength in a wide range of strategic sectors opened up and created job opportunities on a large scale.

“PNB can be depended upon to provide job opportunities for our unemployed graduates,” he said, adding that PNB had to date employed 100,000 people in and outside the country.

The Prime Minister also advised the rakyat (people) to invest their savings wisely and avoid getting fooled by get-rich-quick schemes, as that would lead them to financial ruin.

He said it was important that the public be financially savvy and wary of schemes that promised them instant riches.

“Even developed countries like the United States have not escaped such schemes with millionaire financier Bernard Madoff duping even the rich and educated through pyramid schemes,” he noted.

Najib pointed out that individuals like Madoff would always be around to take advantage of those who were careless and greedy.

He instead urged the people to trust safe, government-backed investments to ensure their future was protected.

Najib also praised PNB chairman Tun Ahmad Sarji Abdul Hamid who in his speech outlined the five Key Performance Indicators (KPIs) PNB would use, as he said the rakyat were no longer content with slogans and rhetoric, but wanted quantifiable achievements.

Ahmad Sarji had said that the five KPIs included measuring the number of shareholders, dividend yield at competitive rates, increase in bumiputera wealth, increase in bumiputera property through unit trust property activity, and investment by non-bumiputeras in selected unit trusts.

He also said the company had invested in 281 companies, of which 230 were listed on Bursa Malaysia in various sectors.

More of Bijak Malaysia

UNIQUE FEATURES 

While many whole life plans out there are each claiming to be superior than the other, Bijak Malaysia certainly stands out from the rest.

Check out the unique features of Bijak Malaysia for yourself:

• Whole life superior protection coverage
• Affordable premiums ranging from RM1,200 to RM6,000 annually
• Extra protection coverage during productive/working years
• Guaranteed Triennial Cash Payment for life @ 5% of Sum Assured until age 88
• Guaranteed Maturity Benefit (Full Sum Assured is payable)
• Pre-packaged, easy enrollment & hassle free (only requires a simple health declaration to get started)
• Strongly backed by the industry as it is initiated by the National Insurance Association of Malaysia (NIAM)
• A bancassurance product with extensive distribution network, for your added convenience

Table 1.1 SUM ASSURED

Table 1.2 TRIENNIAL CASH PAYMENT ( 5% OFF BASIC SUM ASSURED )

So i take myself as an example: 

I am 24 years old and i am able to afford a monthly premium of RM200.

My Sum Assured= RM61900.00

My Triennial Cash Payment= 5% of RM61900

                                                 = RM 3095 per every 3 years

That means i can get RM1031.67 per year with RM2400 saved. Where can you find a place that offer an interest of more than 30% pa?? hmm... not so shabby huh :P

more on this bijak malaysia, you can find it on here.

NIAM offers the new BIJAK MALAYSIA!

Just recently NIAM which stand for National Insurance Association of Malaysia had launched a new whole life insurance plan named BIJAK MALAYSIA. 

Here are the information taken from NIAM website regarding the Bijak Malaysia.

Bijak Malaysia is a first of its kind whole life insurance plan that provides superior protection and coverage until age 88. Not only does its excellent protection coverage give extra to the insured during his/her productive working years, it doubles the benefit should death occur due to accidents. In addition to that, the plan also offers superior survival benefits. 

Bijak Malaysia is indeed a very unique and innovative plan which offers a very affordable and relevant life insurance option to all Malaysians. 

Bijak Malaysia, a superior life insurance to be offered solely through banks, making it easily accessible to the public. 

The strong collaboration between banks and insurance companies will certainly deliver better benefits to the consumers. With Bijak Malaysia, Bancassurance can offer another value for money and innovative product which the public can purchase with confidence, knowing that the product is purchased through a Bank whom they trust. 

Bijak Malaysia will definitely add to the many products and services available to Bank customers through Bancassurance thus making their wealth management service more comprehensive towards the meeting of their customers' needs.

So if i am interested on this Bijak Malaysia then where and whom should i go to?

Participating Insurer and Banks 

AmAssurance Bhd  
AmBank (M) Bhd 

CIMB Aviva Assurance Berhad  
CIMB Bank Bhd 

Hong Leong Assurance Bhd  
Hong Leong Bank Bhd 

Malaysian Assurance Alliance Bhd  

RHB Bank Bhd 

Mayban Life Assurance Bhd  
Maybank Bhd 

Uni.Asia Life Assurance Bhd  
United Overseas Bank (M) Bhd 

EON Bank Group 

Alliance Bank (M) Bhd 

OCBC Bank (M) Bhd

Apa Tu Sukuk?

You may be asking what is the different between the Bon Simpanan Merdeka that Bank Negara launch earlier March and this Sukuk Simpanan Rakyat.

To make it simple, we usually just say that the features of these 2 bonds are different. One is for senior citizens, 1 is for people that is over 21 years of age. One is monthly interest payout, another is quarterly interest payout and etc.... 

Well it's time to dig in deeper on this question. What is Sukuk anyway. Sukuk is the Arabic name for a financial certificate but can be seen as an Islamic equivalent of bond. If that so, then what is a bond? A bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. It is a formal contract to repay borrowed money with interest at fixed intervals.

Thus a bond is like a loan: the issuer is the borrower, the bond holder is the lender, and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to spur the current economy slowdown. 

But however in fixed income, interest bearing bonds are not permissible in Islam, hence Sukuk are securities that comply with the Islamic law and its investment principles, which prohibits the charging, or paying of interest. They will use the term Profit Sharing. 

This is just a very shallow explaination of Sukuk as it can go into very technical and deep. So if really wanna know more about sukuk, you can search it at http://www.learnislamicfinance.com/Free-Study-Notes.htm

Chiao 

Upsize of the Issuance Amount of Sukuk Simpanan Rakyat 01/2009

Well according to Minister of Finance (MoF for short) said that this issurance of Sukuk Simpanan Rakyat 01/2009 already fully subcribed after only 2 days the sukuk was opened for sale. 

However MoF still managed to bring joy for those that havent been able to have their share of cake in this sukuk. Why i said so.... Full report after this.

Due to the overwhelming response from the public, Ministry of Finance wishes to announce that the issuance of Sukuk Simpanan Rakyat 01/2009 has been upsized by using the allocation of the second series. Malaysian citizens 21 years and above wishing to subscribe may still apply for Sukuk Simpanan Rakyat 01/2009 at all commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat), Bank Simpanan Nasional (BSN) and Agrobank during the sales period ending 13 May 2009. 

The initial amount of RM2.5 billion Sukuk Simpanan Rakyat 01/2009 was fully subscribed after only two days after the sukuk was opened for sale on 14 April 2009. 

For further information on Sukuk Simpanan Rakyat 01/2009, please contact Bank Negara Malaysia TELELINK at 1300 88 5465 or by visiting www.treasury.gov.my and www.bnm.gov.my/sukuksimpanan. 

Ministry of Finance Malaysia 
17 April 2009

Source taken from: BANK NEGARA MALAYSIA

So for those who has not yet subcribe this sukuk, do kindly take this opportunity to invest in this sukuk as it does diversify your investment :) 

The New bond in TOWN !!!

Sorry for the very late update after absence for couple of days...

Sukuk is in the town.. well according to Bank Negara, this Sukuk is called Sukuk Simpanan Rakyat (SSR) already available for subcribtion since 14th of April... Let's see what joy does this Sukuk brings.

Ministry of Finance wishes to announce the issuance of Sukuk Simpanan Rakyat 01/2009 amounting to RM2.5 billion on 14 May 2009. This is the first issue of the two series of 3-year RM2.5 billion sukuk each in 2009. Bank Negara Malaysia has been appointed to issue the sukuk on behalf of the Government. 

The sukuk, which will be scripless and based on Shariah principles, is an additional investment instrument for Malaysian citizens who are 21 years and above. The RM2.5 billion sukuk, which has a 3-year tenure, offers a return of 5% per annum and provides the flexibility for early redemption before the maturity date. 

Those wishing to subscribe may apply for Sukuk Simpanan Rakyat 01/2009 during the sales period, commencing from 14 April to 13 May 2009. 

The minimum investment in Sukuk Simpanan Rakyat 01/2009 is RM1,000 with a maximum of RM50,000 per investor. The maximum aggregate holdings per investor for the two series of Sukuk Simpanan Rakyat 2009 is RM50,000. Sukuk Simpanan Rakyat 01/2009 can be subscribed at all commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Berhad, Bank Simpanan Nasional and Agrobank. The allocation of Sukuk Simpanan Rakyat 01/2009 is based on a first-come first-served basis. Successful applicants will be notified by their agent banks. Profit payments will be made on a quarterly basis through the sukuk holders' accounts with their agent banks. 

For further information on Sukuk Simpanan Rakyat 01/2009, please contact Bank Negara Malaysia TELELINK at 1300 88 5465 or by visiting www.treasury.gov.my and www.bnm.gov.my/sukuksimpanan . The key features of Sukuk Simpanan Rakyat 01/2009 are as follows: 

Key Features of Sukuk Simpanan Rakyat 01/2009 
Name of sukuk: Sukuk Simpanan Rakyat 01/2009 

Date of issuance: 14 May 2009
(Sales period 14 April to 13 May 2009) 

Allocation of sukuk: First-come first-served basis 

Total sukuk size: RM2.5 billion 

Sukuk type: Sukuk to be based on Shariah principles 

Profit to investors: 5 % per annum (Guaranteed) 

Frequency of profit payment: Quarterly 

Tenure: 3 years 

Eligible buyers: Malaysian citizens who are 21 years and above 

Minimum holding: Minimum holding per investor is RM1,000 at the point of sale and investors may purchase the sukuk in a multiple of RM100 e.g. RM1,100, RM1,200, etc. 

Maximum holding: Maximum aggregate holdings per investor for the two series of Sukuk Simpanan Rakyat 2009 is RM50,000 

Early redemption: Sukuk holders may redeem the sukuk at face value on and before maturity date, but not earlier than the first profit payment. The profit payments will be apportioned based on the number of days held Minimum redemption amount allowed is RM100 
The sukuk holders may redeem sukuk in multiples of RM100 

Sales period: One month prior to the issuance date 

Form of instrument: Scripless (Well they do send 1 official receipt of subcribtion to your mailing address)

Agent banks: Commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Berhad, Bank Simpanan Nasional and Agrobank 

Tax exemption: Returns on the sukuk to be exempted from tax 

Transferability and assignability: The sukuk is non-negotiable, non-transferable and non-assignable In the event of the death of the sukuk holder, the prevailing inheritance law will take precedence

To make things sweet and short, Sukuk is quite a nice place to diversify your deposit due to its risk free rating. It offers you 5% guarantee interest per year. The interest is pay out quartery and based on simple interest calculation. If you have 50k of sukuk, your interest every year will be 2.5k. Divide the 2.5k by 4 meaning u get RM625 per every 3 months, not to shabby though. 

I will keep you all updated on the availablity of this Sukuk :) 

Places where Compound Interest Comes in

Continue for the previous post.....

It doesnt matter where you save your money, as long as the money still stays with you,  compound interest will work for you.

Here are some places you can consider to save your money.

1. In a Milo Tin under your bed. Not a bad place to safeguard your money as it will always be with you when you sleep. Somemore compound interest still works for you and your money inside the tin except the interest rate is 0%

2. In Savings account. Like the name implies, it is really a saving place for your money. Your money is with the bank which is even safer. The interest rate is horrible, 0.25% for Rm3000 and above. But still compound interest still works for you. 

3. In Fixed deposit Account. The rate given is much higher than Savings account but still consider horrible. 12 mths interest rate only 2.5%, our nation inflation rate also around 5% pa. meaning we already making lost of 2.5% if we put money in FD. But we still can keep our money over here and hope the interest rate will go back up when the economy doing well. 

4. In Bond funds. These funds give back a return of ranging 5~7% depending to the bond rating and the creditability of the bond issuer. Not a bad place to go into given the market condition at this moment plus the risk-to-return ratio is low. 

5. In equity fund or share market. This is where you get high return ranging from 6~50% but the risk-to-return ration of cause will be much higher than those in bond fund. But if you remember rule #2, this is also a wise place to place your money.

In the end, it is still come to you to pick which ever channel that suits you and let compound interest works. Never forgot Rule #3.

I will be stopping here. Next i will sharing with you all which channel i picked for compound interest to work :) 

Ciao 

8th Wonder of the World- Compond Interest

It was just an ordinary weekend where all of us have a small piece of relief and peace from our routine war in the office, Jason's niece came over to Jason's house together with her parents. 

The very moment she saw Jason, she immediately cried out loud which shocked everyone in the house. After a few minutes of comforting her to cool down, she said to Jason :"uncle, u told me the world has a total of eight wonders and during last Friday's classroom small quiz, there is a question asking there are how many wonders in this world and i wrote 8, ended up Jessie that was sitting beside me got it correct and teacher gave him a present. I hate you!  i hate u!" 

Out of the blue she kicked Jason's knee and hide behind her parents. At that very moment, Jason and her niece's parents all laugh out loud. Do you know why? 

Well not to be misleading, this world does only has SEVEN wanders. The 8th wonder was labelled by the late Albert Einstein. That is why Jason's niece got that quiz wrong.

Well what is so special with Compound interest till our late Einstein admit it must be the 8th wonder of the world. This is becauce we cannot underestimate the power that compound interest has. Without it, our savings, investments, credit cards debts wont grow. However if you are not mentally prepared , all that i am going to show you it will just be a myth or hype.

Let's see what compound interest means. Interest that accured when earnings for a specific period are added to principal; thus interest for the following period is computed on the principal plus the accumulated interest. Meaning that if you doesn't spend on the interest accured from your principal and just leave it there thus the next interest will be calculated based of your total capital (principle+interest).

For instant, i save RM10000 into a 12-months Fixed Deposit which gives me an interest of 2.5% p.a. i will receive an interest of RM250 after a year. Given that i doesnt withdraw anything for this fixed deposit and leave it for 5 years, my savings be RM11371.

Year 1- RM10250 (10000+2.5%)

Year 2- RM10506 (10250+2.5%)

Year 3- RM10769 (10506+2.5%)

Year 4- RM11038 (10769+2.5%)

Year 5- RM11314  (11038+2.5%)

 

But if every year i spent the interest from the Fixed Deposit, in the end i only got RM1250 (250 x 5). Compounding interest from the Fixed deposit manage to get me an extra of RM64 to spend at the end of year 5.

Plot these numbers into graph, you can noticed the growth is exponential. Meaning the interest earned is more significant towards the end. Compare the interest gain for year 1 and year 5, you can see the interest gain on year 1 is only 250 while the interest gain on year 5 is 276.

Compound interest never stop working for you, just like Citibank motto's "The Citi never sleeps". All you need to do is not to distub him at work, let him concentrate on doing what he is good in thus in the end he will definitely deliver the magnificent results for your hard earned money.

But how are we going to take full advatange on compound interest? In order to fully utilize the power of coumpound interest, do make sure you provide the ideal working environment for him.

Rule #1- Start saving and investing as soon as possible. Any amount will do.

Rule #2- Let them to be compounded as long as possible. eg, 10yrs, 15yrs, 20yrs.....

Rule #3- DONT FORGET RULE #1 AND #2

To be continued.....

Time Value of Money

Before i start to share about what really financial planning is about, i would like to ask you all 1 simple scenario question.

What if i give you RM2400 as your pocket money for the year but i need you to choose 1 of the payment methods i offer below:

i. Receive the RM2400 right now.

ii. Receive the RM2400 after 12months from now.

Well, it seems like these 2 options are the same however what RM2400 can buy now and what RM2400 can buy after 1 year?

So what will you choose? Receive the money now or later?

Cant get the idea i am trying to say? Remember back when good old primary school days where 1 bowl of mee soup only cost around 50cents then gone up to secondary time, the same bowl of mee become RM1.50 and when working time now it is RM3.00

So you see now the money that you have present time is worth more than the same amount in the future. There is 2 things that you need to know about value of money: as long saving money can net you interest, any amount is worth more the sooner you receive it; Another thing is Compound interest- The Double-Edged Sword.

Taking the 1st question as example, if you choose to receive the money now and decided to put in a Fixed-Deposit of 12months which is 2.5%pa, your RM2400 will become RM2460 (2400 x 1.025). But then if you choose to receive the money a year later, your RM2400 only worth RM2341.46 (2400/1.025).

I will go more on the compound interest next time because i dont want to make my entry so long till can bore you all :) So basically save whatever we can now instead of i will start saving when my acc got a certain amount of money. 

Arigato and Sayonara, see ya next time ^^V

Welcome ^^V

Hi, welcome to the small financial world of mine. First of all i would like to thank you all for spending some time on reading the posts here. This is the 1st welcoming post and i promised more will come. 

I decided to start this due to my found interest in personal finance and i believe it is quite becoming a nessecity to all of us nowadays. So i am determined to share all my 2 cents on it.

Hopefully i wont get a tonne of flaming for my posts but i do hope you all would share your point of view by commenting on my posts as sharing is caring ya :) 

Well Personal finance touches on Insurance, Taxation, Estate Planning and Investment. As i am still on the crossroads of going to either CFA or CFP, so what i am share here is really merely based on my own studies as well working experience as PFE :)

Other than that, i  would like to share my thoughs of properties and cars esp compact cars. This is due to other than my GF, i have also grown a passion love for compact cars :) rs esp compact cars. This is due to other than my GF, i have also grown a passion love for compact cars :) 

Till then....