080 eUnitTrust is doing promotion again!

I last wrote about online unit trust investing in this post.

I have been using Phillip's eUnitTrust portal to invest in unit trust. I like it because of I can do everything online and the service charge is as low as 0%~2% only. I must admit I am pampered.

Low service charge
As a financial planner, I also encourage my clients who are internet and investment savvy to invest through eUnitTrust. The first thing they can save is on the service charge. As investor, we all realized investment return can be lowered due to upfront service charge. The lower the service charge, the higher the return.

Example:- Let's say ABC funds' one year performance is 10%. If service charge is 5.5%, an investor's net return will be 4.5% only whereas if service charge is 2%, that investor's net return will revise up to 8%. That's a lot of different.

Rule of 72 tells us how many years it takes to double or half our investment value. At 4.5%, it takes 16 years (72 divide by 4.5) to double our money. At 8%, it only takes 9 years (72 divide by 8) to double our money.

So, lower service charge is very important. But the most important thing is the fund manager's skill. There is no point to go for low service charge if the fund rank below average.

Fund ranking
Magazines (e.g. Smart Investors, The Edge), newspapers (e.g. Nan Yang Siang Pau), websites (MorningStar, Fundsupermart) do publish funds performance according to Lipper / MorningStar category. Read and compare carefully. I prefer funds that belongs to the top 25% with consistency.

Example:- If a category has 100 funds, focus on the top 25 funds with consistent return. That means to say, the fund does not stay top this year but go to bottom in the next.


eUnitTrust Promotion
eUnitTrust actively giving 0% sales charge promotion. Funds on promotion varies from time to time depends on fund houses participation. I would say most of the fund houses are generous to participate. I have more than 200 funds to choose from. The latest on promotion can be viewed here.


Or if you are in JB or if you are lazy to surf internet, do contact me and I can explain how I use eUnitTrust for my own investment including the tips and tricks. If you are interested to open account, I can do the referral. (Hmmm, I need to find out any gift for Client-Get-Client or not.)

083 Foreign Currency Account (Foreign Currency Current Account)

Introduction	介绍	Pengenalan
Ever since our investors can start investing using foreign currencies (previous post), I have been studying banks' Foreign Currency Account (FCA). This is because new injection & future redemption in foreign currencies must be done through FCA.	自从知道顾客可以用其他货币来投资基金后，我就一直在研究各家银行的外币户头。这是因为投资款以及将来的赎回款都必须通过外币户头过账。	Semenjak tahu behawa pelabur boleh melabur menggunakan matawang asing, saya mula kaji Foreign Currency Account (FCA) setiap bank. Ini disebabkan segala pelaburan dan penebusan harus dilakukan melalui FCA.
Comparison of FCA	外币户头比较	Perbandingan FCA
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Maybank CIMB RHB Public Hong Leong Min Deposit USD1,000 or equivalent (for individuals) ? USD1,000.00 or its equivalent for individuals USD1,000 or its equivalent in other foreign currencies is required $5,000 AUD / SGD Transaction charges USD4.00 - - USD1.06 RM10.60 or its equivalent Reproduction of Statements for Foreign Currency Current Account for period up to 1 year - RM10.60 (upfront) RM2.12 (additional page) - - Hong Leong Reproduction of Statements for Foreign Currency Current Account for period exceeding 1 year - RM31.80 (upfront) RM2.12 (additional page) - - Hong Leong Handling fee for debit/credit entries (excluding transfers/placements into Foreign Currency Fixed Deposit accounts & rectification entries) - USD2.12 or RM equivalent per entry - USD1.06 Hong Leong Service charge / Account Maintenance Fee - USD10.60 or RM equivalent half yearly - USD21-20 (or its equivalent in RM) per annum per customer RM31.80 or its equivalent every half year ( June & December)* Withdrawal in foreign currency? No At certain branch only ? No No
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082 Multi-currency Unit Trust 多元货币信托基金

Introduction	Pengenalan	介绍
All these while, we can only invest in unit trust in Ringgit Malaysia only. Even if we bought overseas funds, we still pay in Ringgit Malaysia. As retail investors, we all are used to such practice. High net worth investors, on the other hand, has the privilege to invest in other currencies.	Selama ini,kita melabur unit trust dalam matawang Ringgit. Walaupun fund yang kita labur tu adalah oversea fund, kita tetap bayar dalam Ringgit Malaysia. Pelabur yang berada pula berpeluang untuk labur dalam matawang-matawang yang lain.	一直以来，我们都是以马币投资信托基金。即使我们所投资的基金属于岸外基金，我们仍然是以马币付款。相反的，高能力的投资者有机会以外币来投资基金。
The strong point of investing overseas unit trust in Ringgit Malaysia is to be able to benefit from shares / bonds price as well as currency appreciation. If both parameters go north, then the investment is successful.	Kelebihan melabur unit trust luar negara dalam Ringgit Malaysia adalah peluang keuntungan daripada kenaikan harga saham / bon dan juga matawang. Jika kedua-dua unsur tersebut adalah positif, maka pelaburan itu menguntungkan.	以马币来投资的最主要强处在于可以从投资标的以及货币升值中受益。如果这两个因素都为正面的话，那这个投资就是成功的。
The recent foreign currency depreciation (or rather Ringgit depreciation), has made some funds to produce great results although the shares / bonds does not quite appreciate in price.	Kenaikan matawang asing (ataupun penurunan matawang Ringgit) telah menyebabkan sesetengah unit trust memberi keputusan yang sangat memuaskan. Ini memandangkan saham / bon yang dilabur tidak sangat naik harga.	最近的外币升值（抑或是马币贬值）造就了某些基金交出亮眼的成绩。而其投资标的成绩或许并不如何。
This very trying period of currency depreciation has caused some investors to start to look for investing in foreign currencies. Apart from some pessimistic perception towards economy, there could be many practical reasons to do so.	Dalam keadaan penurunan matawang yang menyusahkan ini, sesetengah pelabur mula ingin melabur menggunakan matawang asing. Jika kita abaikan persepsi negatif tentang keadaan ekonomi, permintaan sedemikian mungkin adalah munasabah.	在面对货币贬值这样一个艰难的时刻，投资者开始寻找以外币作投资。如果撇开个人对经济状况的悲观看法，如此的做法确实是合理的。
Before we dig into the benefits of direct investing in foreign currencies, let's review how people on street keep foreign currencies if they do exchange.	Sebelum kita mengkaji kelebihan melabur dalam matawang asing, biarlah kita mengetahui bagaimana rakyat jelata menyimpan matawang asing mereka.	在我们仔细研究以外币投资的害处之前，让我们看看平民百姓是如何收藏他们的外币。
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How normal people keep their foreign currencies	Bagaimana rakyat jelata menyimpan duit matawang asing	平民百姓如何收藏外币
Ok, we must understand it is quite hard for normal people to open a savings account overseas. Singapore is very near to JB. Can we go to Singapore to open a savings account? Fact is if we don't have investments, properties or holding any job in Singapore, the banks there doesn't accept us to open account.	Kita harus faham bahawa agak susah untuk rakyat jelata membuka akaun simpanan di luar negara. Contohnya, Singapura sangat dekat dengan JB. Bolehkan kita pergi ke Singapura untuk membuka akaun simpanan? Jawapannya ialah sekiranya kita tidak mempunyai apa-apa pelaburan, hartanah atau pekerjaan di Singapura, maka bank-bank sana tidak akan menerima pembukaan akaun.	我们应该了解平民百姓很难在外国开设储蓄户头。例如新加坡很靠近新山。那我们可以去到彼岸开设储蓄户头吗？答案是如果我们在当地没有投资、资产或持有工作，那么当地银行是不会接受我们的开户要求的。
If this is so, how do normal people keep their foreign currencies? At home? Safe deposit box?	Jika sebegitu, bagaimana rakyat jelata menyimpan duit matawang asing? Di rumah? Kotak simpanan bank?	若是如此，平民百姓会把外币存在哪里呢？家里吗？银行保险箱吗？
My uncle keep some SGD when he heard his friends do so. They all go to money changer to exchange MYR into SGD. Where do they keep? Some put in safe deposit box while some keep at home. Both methods offers no growth, no interest. Keeping at home is not so safe - one might worry being stolen by outsiders and insiders.	Pakcik saya juga simpan sedikit duit Singapura setelah dipengaruhi kawan-kawannya. Mereka menukar wang Malaysia ke wang Singapura di pengurup wang. Mana mereka simpan duit-duit tu. Mereka ada yang simpan di kotak simpanan bank, ada yang simpan di rumah. Kedua-dua cara ini tidak menjana sebarang pertumbuhan malahan bunga pun tiada. Simpan di rumah tidaklah sebegitu selamat di mana mungkin dicuri oleh orang luar atau ahli keluarga.	我的舅舅听了朋友的话也存了一些新币。他们都是去钱币兑换商把马币兑换成新币。收在哪里呢？其中有些放在银行保险箱，有些放在家里。两者既不能增值又没有利息。尤其放在家里其实挺不安全的，既怕外贼又怕内贼。
On top of that, he may face some problems if he needs to remit the money, in big amount, for overseas usage. The bank may query how he got that amount. Apparently, banks won't knows he had been savings them bit by bit over the years.	Selain daripada itu, mungkin ada sedikit masalah sekiranya dia ingin remit duit tersebut ke luar negara, terutamanya amaun yang besar. Bank mungkin akan bertanya cara dia mendapat atau mengumpul jumlah itu. Bank tidak tahu bagaimana dia mengumpul duit-duit tersebut selama ini.	除此之外，如果他要把钱汇出国外的话，可能也会面对一点问题。银行可能会好奇他是如何有那笔钱的。当然，银行并不知道这些年来，他是如何累计那些钱的。
The safer choice to keep foreign currencies in local banks' Foreign Currency Account (FCA) or Master Foreign Currency Account (MFCA). This type of account is quite similar to normal savings account. It gives no interest, except some specific currencies only.	Cara yang lebih selamat adalah menyimpan matawang asing dalam Foreign Currency Account (FCA) ataupun Master Foreign Currency Account (MFCA). Akaun ini lebih kurang sama dengan akaun simpanan biasa. Selain daripada matawang tertentu, ia tidak memberi apa-apa faedah.	比较稳当的做法其实是把钱放入外币户头。这类户头就如普通储蓄户头一般。除了特定的外币之外，它可能没有任何的利息。
If my uncle open this FCA, his money will be guaranteed by PIDM and bank will have his transaction records. He can proves he saves the money bit by bit.	Jika pakcik saya buka FCA, duitnya adalah dijamin oleh PIDM. Bank juga mempunyai segala rekod transaksi. Dia boleh membuktikan duitnya disimpan sedikit demi sedikit.	如果我的舅舅开了这个外币户头，他的存款是受PIDM保障的。银行也会拥有他的所有来往记录。他可以证明自己的钱财是日积月累而来的。
Any other alternative?	Ada cara lain?	还有其他方法吗？
What other alternative does normal people have? Yes, by doing unit trust investment. Actually, there are now three options available. 1. Locally registered multi-currency funds 2. Singapore registered multi-currency funds 3. International unit trust funds under offshore investment	Ada apa-apa cara lain untuk rakyat jelata? Ya ada, iaitu labur dalam unit trust. Buat masa sekarang terdapat tiga jenis funds. 1.Funds matawang pelbagai yang didaftar di Malaysia 2. Funds matawang pelbagai yang didaftar di Singapura 3. Unit trust fund antarabangsa di bawah pelaburan offshore	一般人还有其他方法吗？有的，就是通过投资基金。目前有三种基金供选择。 1。本地注册的多元货币基金 2。新加坡注册的多元货币基金 3。隶属岸外投资的国际信托基金
Locally registered multi-currency unit trust funds are managed by locally registered unit trust companies. These funds are regulated by Securities Commission. Affin Hwang, Eastspring and AMB are some that offer such funds. Names like them are may be more familiar to local people. Their funds could be investing in a single country or a region, and quoted in SGD, USD, AUD or JPY besides the MYR version.	Unit trust pelbagai matawang yang didaftar di Malaysia adalah diuruskan oleh unit trust company yang daftar di Malaysia. Unit trust ini dikawal oleh Securities Commission. Affin Hwang, Eastspring dan AMB merupakan salah satu sykt yang mempunyai fund sebegini. Nama-nama di atas lebih dikenali oleh orang tempatan. Fund yang berkenaan boleh labur dalam satu negara sahaja atau satu kawasan, dan dikira dalam matawang SGD, USD, AUD atau JPY (selain MYR).	本地注册的多元货币基金是由本地注册的信托基金公司管理。这类基金由证券委员会监管。艾芬黄氏、瀚亚投资、AMB等都有这类基金。这些公司会比较为本地人所认识。它们的基金可以投资于单一国家或一个区域；除了马币版本，也有新元、美元、澳元或日元版本。
Singapore registered multi-currency unit trust funds could be managed by their local fund houses or international big names. These funds are regulated by MAS (Money Authority of Singapore). Probably we only know UOB, Eastspring or DBS. Some really really big international fund houses like Blackrock, Alliance Bernstein or Schroeder are may be not so heard of in Malaysia.	Unit trust fund pelbagai matawang yang didaftar di Singapura mungkin diuruskan oleh unit trust company di sana atau syarikat antarabangsa yang ternama. Fund itu dikawal oleh MAS (Money Authority of Singapore). Mungkin kita pernah dengar UOB, Eastspring atau DBS. Terdapat juga sykt antarabangsa yang sangat-sangat besar seperti Blackrock, Alliance Bernstein atau Shroders tetapi kita kurang tahu.	新加坡注册的多元货币基金可能由当地本土基金公司或者国际大卡管理。当地基金隶属新加坡金融局监管。我们可能比较熟悉大华银行、瀚亚投资或发展银行。对于真正的国际大卡如黑岩，Alliance Bernstein或Shroders我们就有点孤陋寡闻了。
Offshore international unit trust funds are approved by Labuan offshore authority. Big names could be, again, like Blackrock, Alliance Bernstein, Morgan Stanley or Schroeder. These funds could be domiciled in Isle of Man or Cayman Island. Both are very reputable offshore financial centres.	Unit trust antarabangsa offshore diluluskan oleh Labuan offshore. Blackrock, Alliance Bernstein, Morgan Stanley atau Schroders merupakan nama-nama yang terkenal. Fund itu mungkin ditempatkan di Isle of Man atau Cayman Island. Kedua-dua merupakan pusat kewangan offshore yang sangat terkenal.	岸外信托基金投资是由纳闽岸外管理。其中的大卡如黑岩，Alliance Bernstein, Morgan Stanley或Shroders。这些基金可能设立在曼岛或开曼群岛。两者都是有名的岸外金融中心。
After we see where we can invest, let's see the benefit to invest in foreign currencies.	Selepas kita tahu mana yang kita boleh labur, marilah kita tengok pula kelebihan-kelebihan labur dengan matawang asing.	我们既已讨论可以投资的项目，接着来看看外币投资的好处。
Firstly, it diversifies currency risk. If we keep all assets in local currency, it's the same as putting all eggs in one basket? When one currency suffers, our whole portfolio suffers.	Pertama, ia mengurangkan risiko matawang. Jika kita simpan semua aset dalam satu matawang sahaja, maka ia bersamaan dengan simpan semua telur di dalam bakul yang sama. Apabila suatu matawang itu jatuh nilai, seluruh portfolio kita terganggu.	首先，分散单一货币风险。如果我们的资产全部集中在单一货币，那不是把所有鸡蛋放在同一个篮子里吗？若是那个货币贬值，整个投资将受到影响。
This is especially true if investors has been investing for children's education. If he has planned his child to go to Australia for tertiary education but all his investments (unit trust funds, shares, properties, education insurance plan) are quoted in Ringgit Malaysia. He will have a tough time to exchange them to AUD at current rate.	Ini memang benar untuk senario pelabur melabur untuk pendidikan anaknya. Jika beliau telah berancang untuk menghantar anak ke Australia for sambung belajar tetapi semua pelaburan beliau (unit trust, saham, hartanah, pelan pendidikan insurans) adalah dalam matawang Ringgit. Maka beliau agak terdesak untuk membuat pertukaran wang asing pada keadaan sekarang.	为孩子存教育金的这个例子尤其真实。若是他计划将孩子送去澳洲升学但却将所有投资集中在马币投资（信托基金、股票、教育保险）的话，那么现在的兑换率应该是挺辛苦的。
His situation would be much better if he has some Australia unit trust funds quoted in AUD, some funds quoted in SGD and USD. Most of his funds may still be quoted in Ringgit Malaysia but he will have more tools to play around.	Keadaan beliau akan lebih selesa sekiranya beliau mempunyai sebahagian unit trust dalam matawng AUD, sedikit dalam SGP dan sedikit dalam USD. Kebanyakan unit trust beliau tetap dalam matawang Ringgit tetapi beliau mempunyai lebih cara yang menghadapi keadaan itu.	若是他的投资分散在澳元基金、新元及美元，那么他的情况将轻松很多。尽管多数的投资仍然集中在马币，但他会有更多选择的空间。
Secondly, it gives investors to participate in a country's development without involving local currency fluctuations. The development can mean the economy performance and also inflation rate.	Yang kedua, beliau berpeluang menceburi perkembangan sesuatu negara tanpa melibatkan perolakan matawang tempatan. Ini bermaksud semua perkembangan dari segi ekonomi dan juga kadar inflasi.	其二，他又机会参与某国的发展却又无需面对货币兑换率的风险。这里说的包括该国的经济跟通货膨胀的整个发展而言。
Again, we use the above example. Cost of education in Australia is tightly related to its economy conditions. Their economy and inflation may be growing faster or slower than Malaysia. So, if investors invest directly in Australia funds in AUD, fund's performance will directly reflects Australia's conditions. He does not need to worry his planning might be derailed because he has invested in a unfavorable country.	Kita guna contoh yang sama. Kos pendidikan di Australia berkait dengan keadaan ekonominya. Ekonomi dan kadar inflasi Australia mungkin lebih cepat atau lebih lambat berbanding dengan Malaysia. Jadi, jika pelabur melabur secara terus dalam unit trust Australia dalam matawang AUD, unit trust akan melambangkan keadaan Australia. Beliau tidak perlu risau rancangannya akan terkacau kerana beliau telah melabur di dalam negara yang tidak begitu menguntungkan.	让我们用同样的例子来说明。澳洲的教育费是与该国的经济以及通膨相关的。当地的经济以及通膨率有可能快于或慢于马来西亚。如果投资者直接以澳元投资澳洲基金的话，澳洲基金的表现就直接反映出澳洲的状况。投资者就无需担忧投资错的地方而导致整个计划受挫。
Thirdly, an opportunity to invest long term by accumulating small amounts. Over the past ten years, SGD has been steadily appreciating against MYR. If an investor has started regular savings throughout the years, he would have bit by bit grow his money by participating in Singapore's growth in economy and currency.	Ketiganya, ia merupakan suatu peluang untuk melabur jangkamasa panjang dalam amaun kecil-kecilan. Sepulah tahun yang berlepas, SGD telah meningkat nilai berbanding MYR. Jika seorang pelabur itu telah menyimpan sedikit demi sedikit selama itu, beliau telah menyiapkan duitnya dengan perkembangan ekonomi Singapura.	其三，一个开始小额投资的机会。新元兑马币在过去十年稳健成长。若是投资者在这十年里不停累计，那他已借着新加坡的发展而存了不可小觑的数目。
Fourth, a choice to invest and redeem investment in favored currency. Investors can invest by pumping in MYR and let us convert to his favored currency or directly pay in foreign currency. Likewise, he can redeem in his favored currency.	Keempat, pilihan untuk melabur dan menebus dalam matawang asing yang lebih menarik. Pelabur boleh labur dalam MYR dan biar syarikat kami tukarkan ke matawang yang beliau hendak. Ataupun beliau ingin labur secara terus dalam matawang asing itu. Beliau juga boleh menebus dalam matawang yang menarik.	其四，以外币投资及赎回的机会。投资者可以以马币投资而让我们公司兑换其他货币当投资者要领款时，他可以选择较有利的货币。
Conclusion	Kesimpulan	总结
We are not suggesting investors to convert all his investment into foreign currencies. In this globalised world, it makes sense to diversified to other currencies.	Kita bukanlah mengesyorkan semua pelabur menukar semua pelaburan ke matawang asing. Dalam dunia yang makin menuju ke era globalisasi ini, memang masuk akal untuk kita memperbanyakan pelaburan kita ke matawang asing.	我们不是建议投资者把所有投资换去其他货币。在这个逐渐全球化的时代，拥有其他货币是合理的做法。
We hope such product can benefit investors from many aspects. Plan your future to your favour.	Kami berharap produk sedemikian akan memanfaatkan para pelabur dari pelbagai segi. Rancanglah masa depan dengan bijak.	我们希望投资者可以看出其中的益处，开始为将来做出规划。

081 Motor Insurance with cash back

If you have been to Tesco at Bukit Indah JB, I wonder is you have ever seen this large advertisement at their escalator's wall.

December is my car's roadtax renewal. My existing insurance company sends me the renewal notice plus a quote of the premium. As my car is older than 10 years, I am being quoted to pay for loading and additional personal accident (PA).

Then one day, another colleague recommended me to renew my insurance with Takaful Malaysia. He had been using Takaful Malaysia. He explains to me if I don't make any claim, I may get 15% cash back next year.

I think to myself that my No Claim Discount (NCD) is at 55%, meaning i don't claim for the past few years but the insurance company did not pay me anything. And I think since motor insurance is tariff rate, the premium will be the same, why don't I try Takaful Malaysia.

I gave Takaful Malaysia a rang to confirm they will accept my car. Luckily, my car is not older than 15 years and so they can take me.

I went to their office in Setia Tropika (besides RHB Islamic Bank). I request them to give me a quote. Ahem, their price is cheaper. I do not need to take up the additional personal accident plan. Altogether, I save about RM70. And if I don't make any claim, I may get another 15% cash back.

I happily renew my motor policy with them. Now I am waiting for their official policy document to see their terms and conditions.

Takaful Malaysia's ads in their website.

There are a few more takaful companies in the market, Takaful Malaysia is the only company that offers 15% cash back. I think such practice is attractive as it rewards the careful driver. Many of us are having good record but the insurance companies keep on increasing the premium or adding in unnecessary expensive PA plans.

Will you use this takaful motor insurance for your car?