Tuesday, August 19, 2008
I was thinking about my future suddenly, about salary range, the inflation rate already hiking above 7.7% since the oil price increase few months before. Now I am learning about investment myself thru outside colleague, although I have been investing in certain government protected fund before, but it was all useless, with this type of investment the return still could not fight the inflation.
The definition: Let say today you have a million Ringgit, and you keep the money in your safe or just keep it in your saving account, after 7 year or so you withdraw the money for your own use. Guess what? Maybe you are still a millionaire after 7 years but with the same amount of money today you could buy more items than you can buy seven years later. This is the cause of inflation.
How to fight this problem? The solution is simple, investment, or you keep the money by buying gold. But which one is better? Today the gold price was ridiculously high since early 2008. And investment returns from ASB, ASN what so ever only gives you a return of 7 – 9 percent annually? Frustrating isn’t it? Not many of us know about investing, so do I, until I get an e-mail from someone who I didn’t know, then I realize I’ve been wasting a lot of time and money by investing in ASB.
Some other invested in Bank Rakyat where the return is about 15% so I tried to get through, sadly the fund was full. The priorities were for the government servant and have to wait for queue. Until I get the e-mail about one legal investment in Unit trust. It tells about Public Ittikal (under Public Mutual-Islamic section) the return at that time (2005) was 60% for previous 3 years! (This can be viewed thru The Star Newspaper every Saturday) but to be remembered that previous track record could not guarantee the same record in the future. Just that from the track record we could judge how well they manage the investment isn’t it?
Instead of investing in fixed deposit of 3.5 percent in banking account or in ASB which return less than 10% why not if it is invested in a unit trust that can give a return (insya’allah) of higher than 10% rite? If you want to buy a house in 4years with fix deposit of RM 25,000, so you must save about RM500 per month in a fixed deposit account, but if you save in unit trust, insya’allah you can pay about RM 35000… See the difference?
Ps: thank you to the unknown person who sent me the email…
Note: for more info just give me your e-mail, insya’allah I will share knowledge about UT and new potential fund launched by public mutual.