RINGGIT COST AVERAGING

Ringgit Cost Averaging is an investment technique intended to reduce exposure to risk associated with making a single large purchase by investing a fixed amount on a particular investment (such as unit trusts) at regular intervals (either monthly or quarterly), regardless of the unit price. For example, you can choose to transfer RM100 to RM 200 from your paycheck to a unit trust fund or you can even make a RM500 or RM1,000 investment every quarter. The amount and frequency of your investments depend on your financial means and future goals.

HOW RINGGIT COST AVERAGING WORK?

More units are purchased when prices are low, and fewer units are bought when prices are high. The premise of ringgit cost averaging is that the investor wants to safeguard against the market losing value shortly after making his or her investment. Furthermore, you must continue to purchase units both in market uptrends and downtrends in order for the strategy to be effective. Hence, you should choose an amount which you feel comfortable investing under all market conditions.

To illustrate ringgit cost averaging better, let’s say you want to save RM12,000 each year for your child’s education fund. Instead of investing it in a lump sum and bear the risk of entering when the market is high, you decided to invest RM1,000 into a unit trust each month as shown in the chart:

Month	Investment	Price	Number
	Amount	Per Unit	of Unit
	(RM)	(RM)	Purchased
January	1,000	0.2549	3,923.11
February	1,000	0.2261	4,422.82
March	1,000	0.2068	4,835.59
April	1,000	0.1846	5,417.12
May	1,000	0.1645	6,079.03
June	1,000	0.1589	6,293.27
July	1,000	0.1477	6,770.48
August	1,000	0.1617	6,184.29
September	1,000	0.1947	5,136.11
October	1,000	0.2035	4,914.00
November	1,000	0.2248	4,448.40
December	1,000	0.251	3,984.06
	12,000		62,408.28

Results:-

Average Unit Price	RM 0.1983
Average Unit Cost	RM 0.1923
Current Unit Price	RM 0.2510
Current Value Of Investment	RM 15,664.48

In this example, the average unit price over the period was RM0.1983 but the average cost to you was RM0.1923, resulting in a 3% lower price to the average unit price over the period.

BAGAIMANA UNIT TRUST BERFUNGSI

BAGAIMANA UNIT TRUST BERFUNGSI

Why Passive Income is Better than Earned Income?

I’ve read Robert Kiyosaki’s book Retire Young Retire Rich. A very good book for those who would like to quit from the makan gaji and move on into entrepreneurship. Whether you want to become a Unit Trust Consultant, Insurance/Takaful Agent or other Network Marketing business, it does not matter. What is important is the experience that you will go through doing your own business. The good thing about joining the business above is that they will give you the time as long as you wish and the capital required to join is usually very low and sometime it is even FREE like our unit trust company. Therefore the risks are minimal or close to ZERO.

The difference between earned income and passive income is that:

Earned Income

1. active income which mean you have to be present doing the job
2. you work you get pay. No work no pay
3. you get paid only once

Passive Income

1. income that you will get even when you are not there
2. no work still get paid
3. you work hard in the beginning and get paid over and over

If you are given a chance assuming everything being equal. Let say you are fresh graduate. You have been given RM2000 per month enough for your food etc for 12 months. If you go for earned income, you work for corporate with RM2000 per month. At the end of month 12, your income will be RM2000 per month.

Now if you choose to build your passive income, let say you join unit trust industry. Your first 3 month income is about RM2000. This is still the earned income. But for the next three months your income will be RM2000 (your active income) plus with RM500 (your passive income based on your own sales as well as your downline sales). To cut short the process your passive income will grow exponentially over the time. Therefore ultimately the percentage of your passive income will surpass your active income to the extent of 90:10 ratio. That is why you see many of senior unit trust consultants or senior takaful agents or senior MLMers are not in desperate to find new clients as well as new agents.

Imagine the CEO salary of RM70,000, if they quit or retired, they won’t get that RM70,000 over and over. But for unit trust consulants that have created many group agency managers, they will still received the money from the group sales even if they only produce minimum quota requirement. So that is a huge difference. Furthermore, the income can be inherited to your beneficiaries.

Thus, we encourage you all to start thinking of building your own PASSIVE income rather than other people passive income. You must aware that we are moving from industrial age to information age very rapidly. So does our thinking. If our thinking is still in the industrial age and don’t want to change, we will be lacking far behind. This era is the era of entrepreneur or home-based business, where you see many people started to build their own business from the back of their house or domitory.

Introduction to Unit Trust

What are Unit Trusts?

Unit Trusts are a form of collective investment that allows investors with similar investment objectives to pool their funds to be invested in a portfolio of securities or other assets.

The manager of the fund then invests the pooled money in a portfolio which may include the asset classes such as Cash, Bonds & Deposits, Shares, Property and Commodities.

Benefits Of Unit Trust

It is tough for an individual to maintain his own portfolio of investments, he needs to keep up to date with market information and sentiment.

By investing in unit trusts most of the necessary ‘know-how’ of investing are transferred to those best equipped to handle it i.e. the professional fund managers.

The advantages and benefits of investing in unit trusts are:

Diversification

A larger pool of funds allows the fund manager managing the unit trust to purchase a wider range of investments. Rather than concentrating an investment portfolio into one or two investments or shares, a portfolio of market securities can be held. The wider the spread of investments, the less volatile (i.e. variable) the investment returns will be. In simple terms, investment into unit trusts means diversification of risk: “not putting all your eggs in one basket.”

Liquidity

Most investors require that their investment be liquid. That is, they can easily buy and sell within a short period of time. Unit trusts provide this benefit, being bought and sold easily. An excellent return that cannot be “cashed-in” (i.e. sold) does not necessarily mean a good investment as poor liquidity constitutes an additional risk factor for the investor.

Professional Fund Management

The people making investment decisions for unit trust holders are professionals. Their training and background ensures that decision making is structured and according to basic investment principles. In the process, unit trust funds enjoy the depth of knowledge and experience that fund manager bring. In the long term, it is this expertise that should generate above average investment returns for unit trust investors.

Affordable and Investment Exposure

For the individual investor, it is sometimes difficult to gain exposure to a particular asset class. For instance, if an investor with USD3,000 wanted to gain exposure to the property market, global equity markets and bond market, it would be impossible to simultaneously hold a direct investment portfolio in all of these markets. With unit trust investments, it is possible to spread your money around to all of these asset classes at the same time, so that the investor can gain the investment exposure he requires.

Wholesale Investment Costs & Access to Investments

When making small investments, the investor faces costs and charges that are much higher. Unit trust funds are investing with large amounts, so that the economics of the transaction are more favorable i.e. the fees and charges/brokerage etc. per investment ringgit are likely to be less.

Also, because fund managers invest in larger amounts, they are able to get access to wholesale yields and products which are impossible for the individual investor to obtain.

Funds for All Type of People

There are many different types of funds that will suit to any level of risk to cater different type of people.

Safe and Secure

Unit Trusts only make investment and do not give out loans thus, the situation where liabilities more than assets will never arise.

More free time

Yes, we have to monitor our investment performance but since the fluctuation of the unit trust fund is not as frequent as stock market and that we have our Professional Fund Manager to look after the investment, we may keep track the fund on a weekly basis. More free time for us.

Attractive Returns

Unit Trust has proven that it is an excellence hedge against inflation. Unit Trust in some countries has shown a return of between 10% to 15%.

HJ MANAN BIN HJ MOHD SAAD is a ISLAMIC Unit Trust Consultant with Public Mutual, Malaysia. He invites those interested to be a consultant to contact him at telefon 019-242 8118

Panel syariah bezakan saham amanah

PELUANG pelaburan dalam unit amanah Islam timbul bukan semata-mata untuk mewujudkan pilihan kepada unit amanah konvensional, tetapi ia sememangnya diperlukan bagi memenuhi kepentingan pelabur-pelabur Islam. Pengenalannya turut menarik minat sebahagian besar pelabur bukan Islam kerana pulangan yang dihasilkan adalah sebanding dan kadang-kala lebih dari unit-unit konvensional.

Prosidur dan cara operasi dana-dana amanah Islam adalah lebih-kurang sama dengan cara konvensional. Yang membezakannya ialah kewujudan panel syariah bagi memantau dan memastikan unit amanah Islam yang ditawarkan adalah diurus dan ditadbir berlandaskan hukum syariah. Individu berkelayakan yang terpilih menduduki panel Syariah dalam setiap syarikat pengurus akan bekerjasama dengan Majlis Penasihat Syariah (SAC) dan Suruhanjaya Sekuriti (SC) dalam mempastikan dana-dana Islam mempraktikkan keperluan syariah dalam setiap sudut operasi dan pelaburan yang dijalankan. Dana-dana Islam ini hanya akan melabur dalam portfolio ‘halal’ dan sekuriti-sekuriti yang diterbitkan berlandas prinsip Islam.

Dana Islam yang melabur dalam portfolio saham halal contohnya, tidak akan melabur dalam kaunter-kaunter saham di mana syarikat tersebut terlibat dengan aktiviti, produk atau perkhidmatan seperti perbankan, insurans dan perkhidmatan kewangan konvensional, perjudian, memproses/memasarkan minuman keras dan makanan-makanan yang tidak halal (seperti yang mengandungi daging babi).

Khidmat panel syariah penting dalam industri untuk menjaga kepentingan pelabur. Secara ringkasnya, panel syariah adalah bertanggungjawab dan berkewajipan ke atas perkara-perkara seperti berikut:-

* Bertanggungjawab memberi nasihat kepada para pengurus berkenaan urusan pentadbiran dana Islam, perihal struktur dan operasi, serta dalam proses pelaburan yang dijalankan.

* Memastikan perjalanan dana-dana Islam mematuhi segala ketetapan dan peraturan yang diputuskan oleh SC berkenaan hal-hal unit amanah dan syariah.

* Merujuk kepada SC, yang kemudiannya merujuk kepada Majlis Penasihat Syariah, untuk mendapatkan khidmat nasihat sekiranya terdapat ketidakpastian dalam aspek khas urusan unit amanah Islam.

* Meneliti laporan pematuhan (compliance report) yang disediakan oleh pejabat pengurus, laporan transaksi selepas atau sebelum disahkan oleh pemegang amanah dan lain-lain laporan yang berkaitan, dengan tujuan setiap prinsip syariah telah dipatuhi.

* Menyediakan satu laporan pengesahan sama ada satu-satu dana itu telah diurus mengikut syariah, untuk disertakan sebagai satu laporan interim atau tahunan.

* Menyemak dan memberi nasihat terhadap bahan-bahan yang akan digunakan dalam mempromosikan dana syariah.

* Menghadirkan diri dalam mesyuarat-mesyuarat yang diadakan dari masa ke semasa oleh SC atau mana-mana pihak berkuasa, berkenaan perkara-perkara yang berkaitan dana amanah dan syariah.

* Menjawab keraguan pelabur berkenaan hal-hal syariah, yang bersangkutan dengan unit amanah yang ditawarkan.

Kewujudan panel syariah mempastikan dana-dana Islam yang dilancarkan bukan terbit atas nama sahaja. Peranan dimainkan meningkatkan keyakinan pelabur bahawa operasi dan cara pelaburan dana amanah Islam yang ditawarkan tidak akan menyimpang hukum syariah Islam.

5 Important Factors to Consider Before you Join any MLM, Unit Trust or Insurance Companies

I just read an ebook by one of the MLM gurus, Bo and Ty. I can summarise here 5 important points for you to consider before you join any MLM, Unit Trust or Takaful companies:

1. The Product - must be unique, effective and has a strong brand
2. The Company Leadership - must have success track record of developing agents’ business
3. Your Upline Leadership - How they will teach you. Do they combined the offline and online techniques. How they leverage the power of the internet?
4. Compensation - is the compensation plan fair for new agents as well as seasoned professionals
5. Timing - is it the best time, good time or bad time to get started with the company

p.s. I am looking for books or ebooks that will help us, the unit trust consultants on how to build our business but unfortunately none in the market (Malaysia as well as globally) that has direct book title such as “How To Build A Multi-Million RM Unit Trust Agency in 3 Years”. Thus, the best thing to do is to search for MLM books and insurance books. Please let me know if you come across any books out there that has direct title on building unit trust business from scratch.

Kekurangan Unit Amanah/Trust

Tertakluk kepada risiko pasaran
Memandangkan unit amanah melabur dalam sekuriti boleh pasar, sudah tentu ia terdedah kepada pergerakan pasaran. Pempelbagaian dalam pelaburan boleh membantu mengurangkan risiko tetapi tidak dapat menghapuskan terus risiko. Harga unit amanah turun naik, dividen mungkin dibayar ataupun tidak, dan anda mungkin mendapat untung atau rugi apabila menjual unit itu.

Tidak sesuai bagi pelaburan jangka pendek
Unit amanah merupakan jentera pelaburan yang sesuai bagi pelaburan jangka sederhana hingga panjang. Ini kerana keuntungan daripada pelaburan dalam unit amanah tidak diperoleh segera. Seseorang boleh menjual unit yang dipegang apabila harga unit itu naik. Walau bagaimanapun, kenaikan harga, yang bergantung kepada pergerakan harga pasaran, biasanya lebih perlahan daripada pergerakan pasaran.

Kesan pempelbagaian berlaku secara dua hala iaitu risiko tertebar apabila pasaran mengalami kejatuhan, begitu juga ganjaran apabila pasaran meningkat. Dividen bagi unit amanah diberi secara berkala dan kesan pengkompaunan hanya dirasai dalam masa apabila keadaan ekonomi yang menguntungkan.

Tiada perkhidmatan ikut arahan
Pelabur unit amanah membeli instrumen pelaburan besar-besaran, oleh itu mereka tidak mempunyai kawalan terhadap keputusan pelaburan yang dibuat oleh pengurus dana. Mereka tidak boleh memberitahu pengurus apakah saham yang hendak dibeli atau yang mana jangan dibeli, dan bila hendak dijual. Pengurus dana bertindak mengikut penasihatnya sendiri, bukannya pelabur. Pelabur hanya boleh memastikan bahawa objektif dan polisi pelaburan dana selaras dengan objektif mereka. Oleh itu, penting para pelabur membaca prospektus pelaburan secara teliti dan memilih pelaburan secara bijak.

Kos yang Dikaitkan dengan Unit Amanah

Ada beberapa kos dikenakan kepada pelabur unit amanah. Amat penting anda memahami pelbagai yuran yang dikenakan kepada anda oleh pengurus dana kerana ia akan mempengaruhi jumlah pulangan diterima.

Syarikat unit amanah dibenarkan mengenakan tiga jenis yuran:

	Bayaran perkhidmatan awal - biasanya bayaran ini dimasukkan dalam harga jualan unit dana;
	Yuran pembelian semula - bayaran ini boleh dimasukkan dalam harga pembelian unit dana; dan
	Yuran pengurusan - ini ialah yuran syarikat kerana mentadbirkan dana dan bayaran dikenakan terus kepada dana.

Selain daripada itu, terdapat beberapa perbelanjaan lain seperti yuran pemegang amanah dan perbelanjaan brokeraj yang ditanggung oleh dana.

Anda patut meneliti yuran yang dikenakan bagi pelbagai dana pilihan anda. Yang paling penting ialah pengurus dana perlu cekap dalam menjalankan urusan. Tidak guna memilih dana murah jika diuruskan oleh pengurus dana kurang baik, tetapi pengurus dana yang baik mungkin mengenakan yuran yang tinggi.