Archive for February, 2009
Future CPF-SA Investors, this may affect you..
Posted by: admin in General, Unit Trust on February 18th, 2009
This is just in!
Abstracted from CPF Website - New Changes in 2009:
CPF Investment Scheme
To lower cost and improve quality of the funds included under CPFIS, the following changes will take place:
- From 1 May 2009, CPF members must first set aside $30,000 in their Special Account (SA) before they can invest their SA monies under CPFIS.
- From 1 January 2011, all funds in the CPFIS must meet all admission criteria applicable since 1 February 2006.
As it currently stands, you must set aside $20,000 before they can invest their SA monies under CPFIS. Meaning that currently, to be able to invest $10,000 from you CPF Special Account (CPF-SA) into a unit trust fund, you’ll need to have $30,000.
From 1st May 2009 onwards, you should have $40,000 in your CPF-SA to be able to invest $10,000.
If you’ve already invested your CPF-SA, this will not affect your current investment, but you may not be able to make a further investment i.e. top-up unless you meet the above guidelines.
I don’t believe in Unit Trust until I found this..
Posted by: admin in General, Unit Trust on February 17th, 2009
Performance of stocks from year 1925 to 2000
Some of the top reasons I’ve encountered by the people who don’t invest (or re-invest) is that it’s too risky, or it’s not a good time to buy in. There are another group of people who consistently see no “luck” in their investments, always losing the moment they go into that new fund/s.
These people usually have one thing in common - they usually see Unit Trust and its counterparts as a short term investment instrument.
Stretch it to a 10-years period or more and you’ll begin to see the opportunity right up there in the chart, almost regardless of when you come in. This is the most ideal period for accumulating funds for children education funds or retirement/old age funds.
Can’t manage your own investment? Working with a competent adviser with a cool head would be a good idea. Though the volatility nature of this investment can be a roller-coaster issue, one will eventually come out a winner with time on his/her side and sound investment fundamentals. I will discuss more about unit trust investing tactics and strategies in the near future.
View the full chart here (this will appear in a new window).
Have a burning question? Let it out here.
The CHEAPEST Term Insurance plans in Singapore right now..
For those who is budget conscious more than anything else, you may find this useful. I’ve saved you weeks of research to come up with these rankings, applicable as of 10th February 2009.
The rankings are based on $250,000 sum insured:
Male, 1 year old
- NTUC iTerm
- HSBC Value Term
Male, 10 years old
- NTUC iTerm
- HSBC Value Term
Male, 20 years old
- GE Essential Term Assurance
- TM Asia Peace of Mind
- NTUC iTerm
- ManuLife 40-Yr Level & Convertible Term
- Aviva Wealth Protector - Level
- AXA Future Protector
- HSBC Value Term
- UOB Life Special
- UOB Life Term 100
Male, 25 years old
- TM Peace of Mind - RP
- GE Essential Term Assurance
- NTUC iTerm
- ManuLife 40-Yr Level & Convertible Term
- HSBC Value Term
- AXA Future Protector
- Aviva Wealth Protector
- UOB Life Special
- UOB Life Term 100
Having listed these, I have to highlight that buying of insurance policies are not just about numbers. The terms and conditions of these policies are likely to vary from one another. Though they can be very confusing, the differences are there to cater to our different sets of situations. A competent adviser should be able to prescribe you with the plan that can best fit your situation.
Can’t find what you’re looking for? Enquire here.
Does Dollar Cost Averaging work in a downturn?
Posted by: admin in Unit Trust on February 2nd, 2009
The Dollar Cost Averaging (DCA) method has been extolled to bring investors returns in good and bad times. Is it true even in bad times? In such a volatile climate, which method is better: lump sum or RSP? We put the DCA theory to test in 3 historical crisis periods: 1997 Asian Financial Crisis, 9/11 Attack and Technology Slump, and SARS.
The short answer is - YES, by a large margin.However, for those who wants to dwell further, read on…
Using MSCI Asia ex Japan index, we have found that RSP fared much better than Lump Sum investment.
Results:
- 1997 Asian Financial Crisis – RSP method brings 13.04% and 19.61% in annualized (IRR)* and absolute returns respectively whereas Lump Sum method reaped negative returns of -4.74% and -13.36% in annualized and absolute returns respectively.
- 9/11 Attack and Technology Slump - RSP method brings -4.08% and -4.06% in annualized (IRR) and absolute returns respectively whereas Lump Sum method reaped negative returns of -15.67% and -30.24% in annualized and absolute returns respectively.
- SARS - RSP method brings 26.43% and 22.61% in annualized (IRR) and absolute returns respectively whereas Lump Sum method reaped returns of 3.94% and 7.06% in annualized and absolute returns respectively.
*internal rate of return
Source: IFAST