I believe I would rather tell you all, what I wrote this morning to my clients to take advantage on the current KLCI level. So that you may get the idea on how to use it to your clients as well.
Even for the people who have shown their interest to become a unit trust consultant should read this letter. So that they can see the bright future of becoming unit trust agent. For the new existing unit trust consultant, you can modify this email and send it to your prospect to invite them to join unit trust business.
The KLCI chart adalah ihsan dari a friend in Public Mutual Melaka. Here is the letter:
How Your Understanding on KLCI Chart Will Make You Millionaires… while working
Assalamualaikum & Salam Ceria,
Do you think the worst is over? So far it shows that Oct-08 is the worst for KLCI since Jan-08. See KLCI historical chart as attached for your copy. Forward it to your friend as you like.
What can we do for this huge opportunity or danger you may say it. Many people still skeptical. But some people who does take action between January till June this year by investing in stock market and unit trust has accumulated at least 10% profit.
Imagine in the next 3 years. Do you think KLCI will remain 1100 or at least go back to it 1500 level. What is the possibility that it goes down to 800 points as in Oct-08.
Do you believe AXIATA value is RM2.50 in the next 3 years. Sama value dengan company second board yang unknown.
We are now in 2009. Rewind the time to 1998 when the KLCI was at 262 level. If you were given the chance to buy any stocks or unit trust fund at that time, will you buy? Any month in 1998, if you invest – you will make profit minimum 30% after 3 years.
Similarly, if you were in 2012 (that’s 3 years from now) when the market is 1500 again, will you buy unit trust in 2009 which the KLCI was only at 1100. Try divide 400 (that is 1500-1100) with 1500 to see the potential profit. It is a whopping 27%. What if, we play an active strategy. Whenever we reach our target profit, we lock it and re-enter the market again. How much profit you can get…
The battery kong very quickly. So I use the Nokia E71. Subscribe to Celcom unlimited data plan. Now I can write the blog while waiting for a meeting with clients.
WordPress has a plug-in where when you access your blog in admin page, it will give a light version of WP so that it download faster as you use 3G access.
This post is a test using E71 with wphone plugin.
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:
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.”
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.
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%.
Arif Ismail is a Unit Trust Consultant with Public Mutual, Malaysia and a founder of http://www.myUnitTrust.com. He invites those interested to be a consultant to contact him at tel (6)013-3640043
Article Source: http://EzineArticles.com/?expert=Arif_Ismail