You need double effort to gain back any investment lost

I wrote about withdrawing EPF money for investment purpose recently. That was due to a friend of mine who is agent to a unit trust company has approached me to do so. Is now a good time to take out your EPF savings and invest in unit trust? I don't think so.

As you can see that over the past few months, there are many uncertainties in the share market that have affected the investors sentiment. The oil price as well as many commodities prices are sky rocking, inflation is accelerated, people spending with more caucious, even the local political environment has become pretty unstable since the last election. As a result, we can clearly see that the unit trust funds are sinking, especially those with high proportion in the share market.

Although I agree that investing in unit trust funds might have a better chance of getting better return than EPF in the long run, but it is definitely not a wise choice to invest on something that is still in the sinking momentum. We have to wait for a better time to switch our hard earned money from EPF to unit trust. Even in the worst scenario, EPF will still pay us a 2.5% dividend, but how much probability do you think that your unit trust will perform better than EPF return by the time they declares for the next dividend? I see more chance of losing money in unit trust funds now than making any money in the short term.

And yes, you can opt for a unit trust fund which invests in the bond and money market. But unfortunately, I don't foresee the return in those unit trust to be better than EPF dividend payout, at least not in their past few years record.

We have to remember the fact that, for any lost we incurred in investment activity, we need double the effort to gain it back. For example, if you purchase a unit trust for RM1.00, and its value drops to RM0.50, that is a 50% lost. You will require the unit trust to gain back 100% from RM0.50 to RM1.00 in order to "break even" your initial investment. That might take you a lot of time, probably a few years to drop from RM1.00 to RM0.50 and regain back to RM1.00 again, and yet you are still not making any money. If you leave your money with the EPF fund, you might probably have earned more than 10% already for the same period of time.

I will seriously think about withdrawing my EPF savings for investment, when I feel that the right timing has come. Now is definitely not the right timing, although it is a right timing to invest directly in share market by picking those high DY, zero debt, good profit growth and low PE companies. You will notice that they have low PE probably because there is no or very limited unit trust fund has invested into them yet. I believe they are already in the radar screen of the fund managers. When the market sentiment become better, the fund managers will buy and push up their stock price, raise the PE to above 10. And when the fund managers start to regain the courage and confident to invest agressively again, that could be the right time we put our money in their trust.

Unit trust agents always like to mention a practice called "dollar cost averaging". In my opinion as an experienced investor in the share market, the "dollar cost averaging" can only be used if you are optimistic that the price has been bottomed up, and there is more tendency for it to rise rather than continue on sinking. If you don't feel that the sinking effect will stop soon, you should not dump in more money with "dollar cost averaging". In fact, you should seriously consider "cut lost" instead. This is because you need double the effort to gain back any investment lost you made. Be smart, when dealing with investment.

iProperty.com Expo and Investment Forum 2008

Every year, iProperty.com Expo attracts thousands of regional and international investors looking for the best property deals in Malaysia and beyond. The event presents to the investors with access to the best real estate opportunities in this rapidly growing region which is brimming with lucrative investment opportunities.

This property expo will showcases over 150 award winning developments from Malaysia, Australia, Canada, India, Indonesia, Singapore, Thailand, UAE, United Kingdom, United States and Vietnam. It expects to have 15,000 worldwide visitors.

The iProperty.com Expo 2008 will be held in Kuala Lumpur Convention Centre on 25-27 July 2008 10am- 7pm. Entry is free by registration.

In conjunction with the iProperty.com Expo, there will be Investment Forum to provide the public with wealth of knowledge and information, essential resources for home buyers and serious investors for their property investment decisions.

Among the seminars scheduled in the Investment Forum are:

• Insight and opportunities for Singaporean to invest in Malaysia
• Developer’s success story
• Outlook of local and regional property market
• Investment in emerging market - China-Vietnam-India
• Investment in the United States
• ... and so on

There will be also forums talking about:

• IT applications in real estate practice
• International opportunities in real estate
• Latest update on Malaysia My Second Home programme
• Taxation and legal matters
• Property hot spots
• ... and so on
  

Click here to download the detailed booklet about iProperty.com Expo 2008.

Click here to register online to iProperty.com Expo 2008.

Free IT security workshops from EC-Council Academy

The International Council of Electronic Commerce Consultants (EC-Council) is offering 2 complementary workshops as follow:

World of Hacker - Understanding the Threats & Countermeasures

This workshop introduces you to the world of the hacker; you will understand the tools hackers use and ways to prevent attacks. You will also be exposed to Computer Hacking Forensic Investigation, which covers the process of detecting hacking attacks, investigation and analysis of techniques to determine potential legal evidence. There will also be real life case studies and demonstration.

Date: 28 June 2008
Time: 9:00am - 1:00pm
Venue: EC-Council Academy Sdn Bhd, Phileo Damansara 1, Petaling Jaya.
Related certification: CEH (Ethical Hacking and Countermeasures)

Network Security & Disaster Recovery

This workshop will discuss about the fundamental skill needed to analyze the internal and external security threats against a network and to develop security policies that will protect an organization's information. Additionally, it covers the foundation for disaster recovery principles, preparation of a disaster recovery plan, assessment of risks in the enterprise, development of policies and procedures, implementation of plan a recovering from a disaster.

Date: 28 June 2008
Time: 1:00pm - 4:00m
Venue: EC-Council Academy Sdn Bhd, Phileo Damansara 1, Petaling Jaya.
Related certifications:
1. ENSA (EC-Council Network Security Administrator)
2. EDRP (EC-Council Disaster Recovery Professional)

EC-Council currently offers the following certification courses:

• CEH (Ethical Hacking and Countermeasures)
• CHFI (Computer Hacking Forensic Investigator)
• ENSA (EC-Council Network Security Administrator)
• EDRP (EC-Council Disaster Recovery Professional)
• ECSA/LPT (EC-Council Certified Security Analyst)
• ECSP (EC-Council Certified Secure Programmer)
• Project Management
• Cyber Marketing
• E-business Security
• Cyber Law
  

For more information and online registration, click here.