EPF Tighten the Water pipe

it will create some impact to those who invest regularly with their EPF account 1 into Unit Trust, as well as the livelihood of unit trust agent who rely a lot on EPF investment scheme.

http://www.btimes.com.my/articles/20130822235609/Article/


It actually reminded me about 7 years ago, where the base saving was extremely high and I was only able to withdraw Rm1400 after working for > 7 years for my first unit trust investment. Luckily I always invest to the max whenever I can from my EPF account 1 after they loosen up the base saving requirement.

What's the learning ?
 When opportunities come to you, just do it, don't wait and see and hesitate then regret, as opportunities come and go in a blink of eyes. 

Federation of Investment Manager Malaysia

Do you know FIMM govern the unit trust industry in Malaysia ? They have very basic informations which would help an investor to understand unit trust before get 'too involved' in this area .... take a look ....

http://www.fmutm.com.my/

Unit Trust Game Rule #1

Why invest in Unit Trust is always a "at least 3-5 years" saving plan ? This seems like a magic number ... the number 3 & 5 ....

Actually, it is not, it is a survey and statistic run that proven if you have this kind of patient (wait for at least 5 years ??), and the fund selected is not really that BAD (well, be realistic, we have people score all As' and some score nothing, so does Mutual Fund)....

I had checked out several funds, seems like this is the acceptable timeframe one needs to wait for their fruit grows if they are prepare not to do much 'watering' and 'gardening'

For sure, this don't apply to those who is in 'Unit Trust TRADING" .... they managed their investment differently.

I am taking one fund to show the example.
Say, an investment of RM10K, comparing with FD & EPF return.
Green line = investment return
Yellow = EPF return
Blue = FD return

















This chart shows an investment for 17 years. (2009 -1992 = 17 years)

Suprisingly, even in the last round of global crisis where the return is badly affected, but still the return is better then EPF & FD. Kind of 'down turn proof' already.

Same fund, but invested 5 years ago.

The return is impacted and return is lower than EPF and FD at early year of 2, and, it is bad during the down turn.

However, it picks up again when the economy recover.

If a fellow panic and sell off during the down turn, this must be the fellow that you met once upon a time and tell you UT sucks where he loses huge in the game.

Hence, a person who don't have enough patient, might not able to play the UT game well and win in the game.