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. …
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 …
To invest in Bursa Malaysia, we need the service of brokerage firms. What exactly is a brokerage firm? Quoting Investopedia: “A brokerage company’s main duty is to be a middleman that connects buyers and sellers to facilitate a transaction. Brokerage companies receive compensation by means of commission once the transaction has successfully completed. For example, when a trade order …
To participate directly in Malaysian stock market, you definitely need to know a thing or two about Bursa Malaysia. At the very least, you should know that this place is where all the public companies are listed and where their shares are offered to public. So what exactly is Bursa Malaysia? It is a public-listed …
Equity crowdfunding (ECF) is almost like stock investment. The money is provided in exchange for shares (equity) in the company. Its reward includes the capital gain (by selling the shares) and dividend if any while its risk is the failure of the company (bankruptcy) and losing all the invested fund. There are 6 such platforms …
A fund house is also known as a fund company or unit trust management company in Malaysia. They own and operate mutual funds. From Investopedia, “Fund company is a commonly used term to describe an investment company, which is a corporation or trust engaged in the business of investing the pooled capital of investors in …
Before I start with my definition, let’s google it first. According to Investopedia, “An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the …
