How do we determine if a stock is worth to be included in our portfolio? This is a question that you yourself must find your own answer. Nonetheless, I will share my opinion here for your reference. After passing the preliminary screening (e.g. good profitability, consistent profit margin, regular dividend, etc.), I will use the …
Exchange traded fund (ETF) has been touted by some parties as an alternative to mutual fund. What exactly is ETF? According to Investopedia, “An ETF, or exchange-traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like a common …
If you have been reading investment books, you must have come across index fund in at least one of these books. What exactly is an index fund? Quoting Investopedia, “An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a market index, such as the Standard & Poor’s 500 Index (S&P 500). An index …
As a Malaysian, I bet you have heard about “Amanah Saham Nasional Berhad” (ASNB) before. They are famous for their fixed price funds. If you have never heard about it, I shall give you some brief information about this investment company. ASNB is a subsidiary of “Permodalan Nasional Berhad” (PNB). It acts as the fund …
First of all, what is P/E? P/E stands for price-earnings. A P/E ratio is used to judge the value of a stock. It is calculated by dividing the share price with earnings per share. In its simplest and crudest interpretation, a low P/E ratio means that the stock is cheap and vice versa. The following …
How do we select a mutual fund to invest in? By drawing lot? Pinning the list of funds on a board and throw darts to choose? Depending on which school of thought you subscribe to, the aforementioned methods might be the correct things to do. Nonetheless, I personally do not select my fund this way. …
How do we select which stock to invest in Bursa Malaysia? This is a question that has not a single answer. In the end, it is all up to you. You need to develop your own criteria for stock selection. What I can do is to show you how I select my stock. Here I …
Have you heard of the term feeder fund? If yes, do you really know what it is? Basically, it is a kind of mutual fund. According to Investopedia, “A feeder fund is one of a number of funds that all put investment capital into an overarching umbrella fund that is called the master fund, for which one …
Have you ever wondered how the price of a mutual fund is determined? What makes the digits tick? Why must there be four decimal points in the price? In this article, we shall find the answers. The published price is actually the net asset value (NAV) of the fund. What is NAV? Quoting Investopedia: “Net …
Since I have quoted so many times from Investopedia, I would be remiss not to write an article about it in this blog. It is like taking people’s ideas without giving credit (although I did give credit to them). What does it do? And why do I use it so often? Taken directly from its …
