Today attended the 2nd day of a 2 1/2 day class in "Learn to Invest In Stock Market - Tutorial 101". The trainer told us a bit of history in changes of Bursa listing requirement in the public spread and public shareholding. Ok, cut it short, it means there are less retail investor nowaday as compared to in 1990s, especially the younger generation (below 40s) (Google this: Bursa Malaysia's Market Chat 2010/2011)
Extract of news
My opinion (without statistic to support) is most younger investors are actually "buy" unit trust to invest as compared to direct invest in Bursa. There are so many funds launch each and every year, if not because of the investors buying unit trust, how can all the fund manager launch more funds each and every year, right?
So, how many of these investors have actually make good return from the investment with Unit Trust? I don't have the statistic also, may be I should start a online poll with enough vote. Please vote at the end of this post.
To know how to invest "right", we must understand the pros and cons of invest via mutual fund.
- Can invest by regular saving in small amount of RM100 onwards
- Can start invest by small amount of RM1,000 onwards
- Can access to the service of professional fund manager (Assumption: sure better than average man on the street)
- Initial charges as high as 6%
- High management fee (but this is a debatable issue)
- Rules that control the operation of unit trust
- No advice or service from agent who sold you this
- Good fund manager may change job but you will not be informed.
- Switching fund may be costly
You just can't be too lazy to invest. A good fund may turns bad in years to come so a certain degree of understanding of what your-hard-earn money is parked with. You just have to learn as much as you can about investment vehicle that you have park your money with.
Ignorance may be very costly. If you work hard to earn money, isn't it logic to spend extra effort on part time basis to let your money make moeny for you?