Staying the Course in the Long Run

Similar to how the slow and steady tortoise beats the hare in the race, the investor who remains focused on long-term goals is more likely to achieve better risk adjusted returns than the investor who has a short-term horizon.

Short-term market movements are unpredictable and in times of major swings, are often driven by sentiments of excessive pessimism or irrational exuberance. In view of the volatile nature of the stock markets, investors should be focused on riding through market cycles by having a medium- to long-term investment horizon of at least three to five years.
In addition, investors can better withstand the impact of market volatility on their investments by investing a fixed amount of money on a regular basis. This strategy is widely known as Ringgit Cost Averaging (RCA), which ensures that you buy more units of an investment when prices are low and fewer units when prices are high. Ultimately, the investor achieves a lower average cost which translates into a higher return when the market recovers.

Take Advantage of Market Downturns

RCA is, in fact, quite an effective strategy during bear markets or volatile market conditions for long-term investors. A strategy of continuing to invest a fixed amount of money when markets are sold down should enable investors to accumulate undervalued shares. Mark Mobius, emerging markets fund manager of Templeton Asset Management Ltd, once said in a Fortune magazine interview: “Investors should dollar-cost-average by investing a fixed amount on a regular basis, and hang in there. No one knows if the markets are going up, down, or sideways.”
By viewing market declines as great buying opportunities, you can enhance your long-term return potential when the market eventually rebounds. Historically the Malaysian market has trended upward over the long run and investors who bought when prices were relatively low will generally be rewarded when prices rebound (see sidebar). Thus, investors are advised to practice a disciplined investing strategy such as RCA to take advantage of the volatility in the markets.

Staying Invested May Prove Rewarding Over the Long-Term

There has been no proven method of predicting which direction the market will move over the short-term period. Nevertheless, some people still try to time market movements by selling their investments when they think the market is about to decline, and by buying in when they think the market is about to rise. By trying to time the market, you potentially miss out on market rallies that could substantially improve your overall return and long-term wealth. Thus, what is most important is not timing the market, but rather staying invested and focused on the long-term investment objectives.

Conclusion

Over the past few years, investors have seen a number of shocks and disruptions to global
financial markets caused by various economic and geopolitical factors. Markets may also
react dramatically in response to specific events. Getting – and staying – prepared for
difficult times, however, is often a determining factor for long-term success.

Seasoned investors know that in the long run, markets have shown remarkable resilience in
times of crisis. For instance, in the recent global financial crisis, stock markets fell sharply
in 2008 with the FTSE Bursa Malaysia Kuala Lumpur Composite Index (KLCI) (FBM
KLCI) falling by 39.33 percent. However, markets started to rebound strongly from March
2009 onwards with the FBM KLCI registering a one-year return of 51.35 percent as at
March 31, 2010. Investors who are disciplined, well-invested, opportunistic and diversified
will have a greater degree of confidence that their investment goals will be achieved. In
comparison, sentiment-driven investors who have short-term goals may have panicked
during the market’s sharp sell-down in late 2008 and redeemed their unit trust investments,
turning an unrealised loss into a realised loss. If they held on to their investments and
continued to practise RCA, they would be able to minimise their losses and possibly
achieve positive returns.

Sidebar

Riding the Bulls and Bears

Over the past 32 years, the local stock market has experienced its fair share of ups and
downs. Since 1976, the FBM KLCI, which proxies the local market, has generated positive
returns in 21 years. Out of those, the FBM KLCI’s gains exceeded 10 percent in 15 out of
the 21 years. In comparison, the FBM KLCI declined in 11 years since its inception, with
losses ranging between 0.84 percent (2005) and 51.98 percent (1997). Nevertheless, the
KLCI enjoyed annualised returns of 6.81 percent per annum since 1976 despite the major
market correction in 2008. Over the period, the market was volatile but generally moved in
an upward direction in tandem with Malaysia’s economic growth and increase in market
capitalisation of listed companies.

So when is the best time to invest? That is a question no one, not even the experts, can answer due to the volatile nature of the markets. In fact, it is quite common for some investors to enter the market at the start of a bull market while others join in when the market hits its peak and is poised for a correction. These investors would have incurred losses in times such as the 1997/98 Asian financial crisis. However, investors who practise RCA when markets were volatile would be able to partially mitigate the sharp sell-down during bear markets.


Lancer Lim - Unit Trust Consultant
+60 19 603 9696
+65 9772 8576
Email: LL@lancerlim.com
www.lancerlim.com
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How to Manage Your Time Better

These days, it can be difficult to find time for even the smallest of tasks. People are constantly on the go, and that stressful lifestyle can lead to all sorts of problems, medical and otherwise. Instead of

living each day in chaos, follow these steps to manage your time and feel your best.

Make the most of it.

Try to kill two birds with one stone as often as possible. For example, if you have to take a day off from work to receive a delivery at home, schedule the appointment with the refrigerator repairman that you’ve been putting off. The more you can check off your to-do list at once, the better.

Just say no.

Don’t try to please everyone by accepting every invitation for dinner or drinks. Politely decline requests for your time if they interfere with precious family time or a work project you must finish. It will feel even better to reward yourself after you’ve completed several tasks.

Eat early or late.

Instead of taking lunch at the usual noon hour, grab a bite an hour earlier or an hour later. Then, you’ll be able to get work done when the office is least crowded.

Review your calendar.

At the end of every month, take a look at the calendar. Note when you fell behind schedule and what days went smoothly. Then decide how many activities, meetings, and appointments you are realistically able to manage.

Have self-awareness.

Determine when you are at your best and brightest each day. Schedule your most difficult tasks for those times, to ensure you will be alert and awake for your toughest challenges.

7 Most Important Habits That Rich People Use to Build Wealth

Aristotle said that “We are what we repeatedly do. Excellence, then, is not an act, but a habit.”

Being rich (having wealth, anyway) is not about having a lot of money or making a lot of money.

It’s about building wealth, keeping your money, and spending it wisely.

Here are the 7 best ways that rich people build wealth and keep it.

1. Learn the difference between an asset and a liability.

This is the most fundamental aspect to build wealth, yet most people have no idea what the real difference is.

A car, unless it’s a real collector’s item, is not an asset. It costs you money no matter how you look at it – it’s maintenance, upkeep, depreciation, etc. all mean you’re losing money.

A house can be either an asset or a liability, depending on its potential. The home you live in is probably not an asset, though you may have heard otherwise.

Most homes are no longer gaining value, so they are no longer assets. A home that you rent out for more than you pay in upkeep and mortgage, however, is an asset.

Learn the difference between the two fundamentals of wealth and you’ll understand that most Americans either purchase junk, spend their money on liabilities they mistakenly think of as assets, or they get wealthy by putting their money to work in things that make more money. To start making your money work for you save your money with the best bank rates.

2. Work hard and be diligent about your finances.

Don’t splurge on something you don’t need just because after months of saving you “deserve it.”

Nothing destroys good habits faster than going off the wagon. Why spend six months working hard to save up $1,500 if you’re just going to spend $800 of it on a “weekend getaway” to reward yourself?

Why not, instead, spend the money and that weekend working to improve your home’s front yard and thus raise its value? Or simply save the money and keep up the good work?

3. Live beneath your means and look poorer than you are.

If your income is $100,000 a year, live like you make $60,000 and save the rest or invest in things that will raise your income to $150,000 a year.

Living well beneath your means doesn’t mean living “poorly,” it just means you’re always prepared for when your $100,000 income suddenly drops to $65,000 because the market changed or your employer goes belly up.

Think of what that two years of $40,000 in savings would mean when your income disappears for a few months..

4. Have patience with your growth.

Most people do not make a fortune overnight and those that do often squander it the next day.

Building a fortune slowly, however, usually means that the person doing it has patience and perseverance and is willing to work hard and knows the difference between spending and investing.

5. Keep on learning and never get comfortable with your income.

In number 3, you were told to live beneath your means. Doing so gives you a feeling of comfort and stability, but also puts you in the habit of being frugal and aware of your spending.

Continue your education, whether it’s formal or informal, and keep building valuable skills you can use to build wealth. Learn to do your own auto mechanics, clean your own pool, wash your own cars, do your own handyman work, garden, or whatever else you might have an interest in learning.

Build skills and learn to whittle away at your expenses. The fewer expenses you have, the more money you’ll have to invest to make even more money. This is building wealth.

6. Live a balanced life and realize that gadgets and trinkets do not make you happy.

Truly wealthy people rarely have all of the latest gadgets and the gaudiest trinkets. In fact, the poorer a person is, the more likely they are to have a house full of dime store trinkets and baubles.

If you were to survey people who have built their own wealth and are truly balanced, happy, and wealthy, you’ll see that these rich people are rich because their lives are rich, not because they have a lot of shiny things to show off their wealth. The millionaire next door is never ostentatious.

7. Become happy and learn to only worry about what’s truly important.

Sure, getting bilked for $1,000 on a car purchase is not good. But can you do anything about it, and is it really worth the headache to?

If you need the car and it’s a good purchase regardless of the padded price tag, maybe the headache isn’t worth the trouble of making a scene. Perhaps a calm letter to the business owner explaining that you won’t be back there again and your friends won’t shop there either will be enough to both vent your frustration and get results in your favor. But obsessing over the lost thousand does no one any good. Least of all yourself.

These simple habits, which are more a lifestyle change than they are habits, are what set apart those who build wealth and those who just appear wealthy.

上班族福音！9招助上班族久坐不累

 

 

　　1.大腿与地面平行。将椅子调高，使大腿与地面平行，可以降低对肌肉、肌腱和骨骼的压力，预防肌肉骨骼疾病;选择靠背椅，在腰部放一个卷起的毛巾或靠枕;手、手腕和前臂在一条直线上，使小臂放在办公桌上时肘部成直角;头部和身体保持直线，稍微前倾;肘部应靠近身体，弯曲90—120度为宜;双肩放松，上臂自然下垂;双脚平放在地板上;椅子最好加个垫子。

　　2.经常走动。美国梅奥诊所研究发现，身体对同一坐姿的可承受时限为20分钟，之后就会产生不适感。建议每隔15分钟，站立、拉伸或走动一下，至少30秒应改变一次坐姿。

　　3.减少重复动作。重复动作必然导致疲劳和压力。电话等常用物件应保持在手臂范围内;可以左右手换着使用电脑鼠标。

　　4.与电脑屏幕保持健康距离。电脑屏幕应该位于正前方至少50厘米，屏幕高度应该略微低于双眼高度。屏幕不应正对窗口，以免反光。

　　5.经常远眺和眨眼。为了防止眼睛干涩和疲劳，眼睛焦距应经常变换，眺望远处或经常眨眼，都有助于保持眼睛湿润。

　　6.保持键盘等办公用品清洁。键盘和电话等办公设备容易滋生细菌。办公桌隐藏的细菌甚至比马桶坐垫还要多，长时间坐在其附近，呼吸道就会受伤害。

　　7.整理凌乱办公桌。办公桌上杂物太多会使人容易发脾气、暴躁。

　　8.呼吸练习。深呼吸，当腹部鼓起时，屏气3秒钟后呼气，能缓解疲劳。

　　9.放几张家人的照片。放家人或朋友的照片、一个盆景、喜爱的海报、油画，以及带来快乐记忆的纪念品等，都可以让你的心情放松。

单位信托的迷思之4

分利與砍竹子的原理

這是單位信托7個迷思的第4篇。今天要談的是迷思4︰

單位信托基金的分利越高，則該基金就是較好的基金。

讓我們來看看以下虛構的（但極具代表性的）2位朋友－傑克與姬兒的談話︰

傑克︰你看起來很開心。

姬兒︰我是開心。我的ABC飛躍單位信托基金剛宣佈要在下星期派發每單位10分的分利。這比定期存款利率好太多了。

傑克︰真的嗎？

姬兒︰我所購買的ABC飛躍單位信托基金的單位定價是1元，所以那10分的分利是相等於10％的回酬。

傑克︰噢，是的，那聽起來真不錯！它比我的DEF穩定成長單位信托基金來得好，同樣也是每單位定價為1元，剛宣佈在下星期派發每單位8分的分利。你的基金一定比我的好。我會贖回我的投資然後購買你的ABC飛躍基金。

要知道傑克的決定是否明智，我們需要看看面具下的真面目並試著比傑克與姬兒更加瞭解單位信托基金的定價與分利的操作方式。

“分利”一詞比“紅利”恰當

回溯2000年，馬來西亞証券監督委員會頒佈將一般上每年派發一次給開放式單位信托基金投資者的“紅利”一詞，不應該再繼續使用。反之，“分利”一詞是更為恰當的。它的原因是︰

一個單位信托基金的分利事實上只是將基金的總值分割歸還給投資者而已。要闡明這一點，讓我們看看傑克與姬兒的基金在下一個星期將會發生的情況。

這裡再重覆︰姬兒擁有ABC飛躍單位信托基金的單位。有關基金在分利前的價格是每單位1元。而分利為每單位10分。

傑克擁有DEF穩定成長單位信托基金的單位。其每單位定價在分利前也是1元。它的分利是每單位8分。

看看基金分利後價格

表面上，姬兒似乎投資於較好的基金。但若要知道事實上是否如此，我們需要將時間往前推進，看看每個基金在分利後（即不含已宣佈的分利）的價格。

若我們做簡單的假定，這兩項基金的相關投資組合在接下來的星期表現持平。在進行分利派發的前一天，每項基金將仍定價於馬幣1元。（這是根據基金買價或每單位的淨值。）

然而在隔日，當分利全都派發之後，這2項基金的價格會有的變化是︰姬兒的ABC飛躍單位信托基金的每單位淨值從1元減低至90分。這是因為那每單位10分的分利派發，就其定義而言，必須是從基金裡扣除！

同樣的，傑克的DEF穩定成長單位信托基金的每單位淨值在每單位8分的分利派發後，將從馬幣1元滑落至92分。

傑克的基金事實上比姬兒的基金保持更多的價值，因為在分利裡所歸還的價值較少。

這情況就好比傑克與姬兒各有棵竹子的小片土地。讓我們假設兩位朋友都是種植的一流高手。他們每人都是從小竹子起養植至大竹子。而他們的成果是令人鼓舞的。

傑克的竹子高8尺4寸。姬兒的竹子也是有8尺4寸高。這表示兩棵竹子明確地說有100寸高。

有一天，姬兒決定要砍一些竹子。她不想也不需要砍下她的整棵竹子。反而只需從竹子的頂部切下10寸即可。現在她的竹子有90寸高。

傑克也決定做同樣的事。但他只是切下8寸，那棵竹子現在則有92寸高。

傑克若要咕噥他只有8寸長的竹子，而姬兒卻有10寸長的竹子或許是滑稽的！畢竟，傑克有更多的竹子在園地裡，仍在成長著。

這就是當派發分利時，單位信托投資者會遇到的真正情況。

不提傑克與姬兒的單位信托基金，讓我們看看另外兩項基金，我們就稱它們為基金A與基金B。假設基金A在分利前的每單位價格為1.10元而基金B是85分。

基金表現好壞與分利無關

若 基金A宣佈派發每單位10分的分利和基金B是派發每單位2分的分利，在完成那些分利的派發后，基金A的單位價格將是1元（＝1.10－0.10）；而基金 B的單位價格為0.83（＝0.85－0.02）。那些調整後的價格對我們並沒有甚麼意義，因為每項基金表現的好壞與其分利派發的多寡是毫無關係的！

即然這樣，那單位信托管理公司為何常要試著派發高額的分利呢？總的來說，譏諷的答案是這對一般群眾而言，那使他們看來表現良好！一般的大眾不了解所涉及的明確定價方式，並可能被高額的分利所吸引。這樣一來也讓單位信托代理員得以較容易進行銷售。

分利本身並沒有任何不妥。但請記得兩項基金在其個別的分利派發後的表現與其分利的多寡是完全無關的。

無論如何，一位聰明的單位信托投資者將知道，當要進行比較時需要考慮的是一項基金的總回酬。有關的總回酬實際上包含了分利與資本增長。而我們的結論是︰

單位信托基金的分利越高，則該基金就是較好的基金－是錯誤的。

暗示︰要避免遭受欺騙，就經常想那竹子本身真正的成長。

单位信托的迷思之3

小規模的基金是好是壞？

這是大多數馬來西亞投資者信以為真的那7個迷思的第3篇相關文章。今日，讓我們看看第3個迷思︰

小規模的基金通常表現超越那些規模較大的基金。

我們將分析目標限定為馬來西亞股票單位信托基金。

單位信托基金經理們受相關的管理者所管束以分散投資他們的資金於不同的上市公司。基金越大，分散範圍越廣。

假設你的孩子們有2個水族缸，2個缸都注滿了清潔的水。

你的小女兒將一只半盎司重的古比魚放進水族缸A；只要注入一些水，這隻小魚就可很愉快地暢游探索它的新住處。之後，你練習舉重的10多歲兒子從寵物店裡帶回一隻20磅重的暖海魚，並將它放進水族缸B；女傭要來回好幾趟才可完成換置水缸清水的工作。

哪一隻魚在其整體的環境裡佔有較大的份量呢？是那隻暖海魚。

同 樣的，一個大規模的基金在其整體市場而言佔有較大的份量。因此，若一個基金擁有很多資金，它可以購買很多股分，而且是每支股買很多份額！現在，若你要買一 單位的馬電訊股票，這個交易並不會導致馬電訊的股價逐漸攀升。但是，若你的基金經理要買入500單位的馬電訊股票（50萬股），在一天之內，該股的價格可 能就由於此交易而上升馬幣10分（同樣的情況也發生在售出股票時，除了有關的股價或許會因大量售出而稍微下跌之外）。

大交易影響價格

一項大交易的影響是“滑動性”的︰即有關機構投資者的交易本身影響了有關的價格。

馬來西亞單位信托基金的規模越大，則基金經理要超越其投資技術的衡量標淮－基準指數就會越難。以馬來西亞的股票單位信托而言，一般上使用的基準指數為吉隆坡股票交易所綜合指數（KLSE CI）。

然而，在現實生活裡，事情並不都是事先就準備好的，尤其當有關領域的市場是相對地小。若將所有政府與私人單位信托管理公司都計算在內，它也只是占整個吉隆坡股票交易所市場資本額的大約11%而已。

目 前整個單位信托業裡，有三分之二的份額由政府基金所管轄。而剩下的三分之一由超過30家的私人單位信托管理公司瓜分。大眾信托基金是其中最大的私人單位信 托管理公司。（截至2003年3月，大眾信托基金共管理馬幣59億的基金，擁有私人單位信托領域的27%市場佔有率。）

然而，私人單位信托業在整個吉隆坡股票交易所市場資本裡所佔的比率少於5%。所以，最大的私人單位信托管理公司－大眾信托基金只有大約吉隆坡股票交易所市場資本額的1.2%。顯然地，一旦比對實際上的數目，你會發現即使是最大的單位信托業者也並不真的那麼舉足輕重了。

這麼一來，你會根據基金規模的大小去選擇一項投資基金嗎？一項摘取12項馬來西亞單位信托基金的研究揭示了一些有趣的真相。（那些基金裡有6項基金每個都擁有少過馬幣1億的價值。其餘6項則擁有超過馬幣3億的價值。）

小型基金在牛市時表現較好

在經過一個短時期後──年的牛市後─有6項小規模的基金表現在大部份的時候超越6項大規模的基金！一些基金規模大的則表現比基金規模小的來得好，但平均來說小規模的基金在市場上漲時顯得表現較好。這是為甚麼呢？

一個小規模的基金亳無選擇地只得將少數的“雞蛋”放在其藍子裡。若這些‘雞蛋’的某部份表現良好，那整個基金的優勢將大過一個大規模的基金。這個事實即使在大基金擁有相同數量的高表現“雞蛋”加上其它表現中等的“雞蛋”時仍是一樣的。

一個大規模基金本身在使它的高表現股票增加總回酬方面顯得更為困難。

那在市場處於跌勢時又如何呢？一個積極的小規模基金通常都擁有高風險股票。這些股票比整體的市場上升得快。而高風險股票的唯一缺點是︰它們不只上升得快；在市場走下坡時，它們墜落的速度也比整體市場快得多。

因此，在一個熊市裡，大小基金所擁有的高風險股都一樣會急轉直下的。但要記得的是，大基金在許多不同的公司進行投資，而那方面應可提供額外的穩定性。這在實務上是否行得通呢？

讓我們看看那12項基金在3年熊市的情形︰6項小基金的其中5項比任何一項大基金下跌得多。（而當中表現最佳的小基金也只比表現最遜色的一項大基金好而已！）

所以，小規模的股票基金在牛市時比大規模的基金佔優勢，但在熊市的時期則處於不利的地位。

投資應包含大小基金組合

要時時預測市場的走勢是不容易的。因此，投資於一個包含大基金與小基金的組合，以便取得每種基金類型的固有優點－透過多元化投資的健全資產配置是有其意義的。

但就此篇所討論的主要課題之結論是︰

小規模的基金通常表現比大規模的基金好是錯誤的。（若我們延申有關的研究，包括入息基金，例如金融市場及債券基金，則基金規模大的好處是不勝枚舉的。大規模入息基金的經濟實惠減少了基金管理投資成本，這會帶來更多的收益予投資者。）


Lancer Lim - Unit Trust Consultant
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www.lancerlim.com
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Achieve Early Financial Independence with Unit Trust

Why unit trust investment?

Unit trust is a form of collective investment that allows investors with similar investment objectives to pool their funds to be invested by professional fund manager in a portfolio of securities.

Benefits of Investing in Unit Trust:

Professional Fund Management
Unit trusts are managed by approved  professional fund manager, ensuring that decision making is structured and based on sound  investment principles.

Diversification
Unit trusts help you diversity your investments in a portfolio of securities to minimise risk and volatility.

Capital Appreciation/Income Stream
Unit trusts provide you with the opportunity to reap capital growth and /or income stream as return on investment.

Investment Exposure
Unit trusts make it possible to spread your investments and gain exposure to various asset classes and/or countries.

Liquidity
Unit trusts allow you to easily buy or sell your investments with minimum hassle. Investors will receive their redemption proceeds within 10days. Our priority members, Mutual Gold and Mutual Gold Elite will receive their proceeds within 2 business days.

Flexibility & Affordability
You can start your investment with as low RM1,000 and top it up with a minimum of only RM100.

Confort of Regulatory
Unit trusts are regulated by the Securities Commission to protect the interest of investors.

Advantages of Compounding
Unit trusts allow you to reinvest the income/distribution to accumulate growth.

The Power of Compounding

If you start early, your investment could grow 66% more with only half the investment outlay at age 55.The key element to compounding is time - the longer the period of time, the greater the growth.

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