FD, Property, Share Market and Unit Trust

If you have RM500,000 you have few choices
1. Saving it in FD with 0% risk and you gets 3++% return per annum. You are losing money every year. Why? Because of inflation rate of more than 4% per year, you lost money because your money tends to get smaller year by year.
2. Buy a property. Depends on luck and the market opportunity. If you get a good shop lot you might be able to get rental of few thousand per month. If you get rental of RM3,000 per month you get RM36,000 per month. And the return is 7.2% per year. There is un-realised capital growth for asset appreciation for that shop lot that you have invested. If you sell your property at RM800,000 after 5 years. You get 12% per annum and that totals to about 19.2% return per annum.
3. You invested in some blue chips in share market. It requires your attention on the stocks that you have invested. The return might various from losing money to the return of more than 100%. With the average market return, you probably get around 40% for past 1 year. It is short term investment and the risk is much higher. Say a return of 100% for past 5 years (market is good), you get around 20% per annum.
4. You invested in unit trust. You do not need to put much attention on it. You let the fund managers manage the funds. When the market is good and you have invested in aggressive funds, you get about 100% return for past 3 years. Factor in the market fall, you probably get about an average of 12% per annum if you have invested in the unit trust for 12 years. And if you perform switching (switch in to bond fund when market has reach high and switch out from bond into equity when market is low), you will enjoy more profit from the market switch.

October 4 2007

Ya, my little Jenxun was born on October 4 2007, a calendar day that was stated 黄道吉日in the Chinese Calendar. I had even told my wife to go for delivery if we could choose. The delivery of Jenxun was much smoother than expected. Drove my wife to Pantai Hospital at 6.45AM when she had stomach pain. The journey to Pantail Hospital is considered far. Though drove at the speed of near 120km/h in my Toyota Avanza, I have raised my alert to highest level to make sure it is not a dangerous ride. My brave Avanza has not been dissapointed me before and I had tried it at the speed of 150km/h for once in my life time in that little Avanza, 120km/h he can manage it very well. Furthermore, the wheel has been enhanced to 15" to improve the performance on the road. My wife had serious pain after arrived in the hospital and with the help of doctor and 2 nurses, she suffer shorter labour pain and my little Jenxun said hello to the world then after.