May 2019 is the most volatile month so far this year. Kuala Lumpur Composite Index (KLCI) closed below 1600 a few times in the month. Luckily, it recovered nearing the end of May (1650.76) and closed higher than the end of April (1642.29). A surprise reversal Honestly, I did not expect the market to recover …
The Dow Jones Industrial Average (DJIA) posted a sharp decline since 10 October 2018 and is still heading downward. DJIA is one of the major indexes in United States and its decline spells trouble. Bursa Malaysia is also affected and KLCI dropped significantly in this week. So, does this signal the beginning of a bear …
(Updated: 3 January 2020) I first opened a trading account with Rakuten Trade (Link) in August 2018. After using it for a while, I feel it is a good platform to share with others. Main Benefit The main selling point for this brokerage is its low brokerage fee. If the transaction involves less than …
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. …
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 …
