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April 01, 2005
Such a growth in funds
I had to go to a bank again, today and saw the following advertisement that hangs on a pillar.
It speaks of your return on investment - the upper line assumes that you invest RM100,000. The row in the middle talks about the potential return while the last row states your profits.
Amazing profits.
Like: You invest RM100,000 in the EPF fund and have a return of 13.75%.
Or: The funds that are managed by a company starting with PRU. They write about returns of 74%, 86% or more.
Please be aware that these are 3 years. What is not mentioned in any of those advertisements is that a stock market can go up or down. It can give a return of 1% in one year and 15% in another year, or a negative value in yet another year.
I am not sure if any such fund can sustain such growth - or: I have some ideas, but I won't state those here. Please send me an e-mail if you want my opinion.
I believe that it is important to diversify your portfolio - don't leave your cash in the bank. Invest it and start early. As early as possible, and if it is RM20 in a week or a month. Start now, and those numbers grow. But take care of such forecast.
Posted by Andreas at April 1, 2005 04:24 PM
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Comments
hahaa economics applied in real life. Don't leave all your savings in the bank; buy bond$. <- sounds like an ad. :P
Posted by: Ivy at April 2, 2005 09:50 PM