I agreed that buying financial/bank stocks in M’sia(e.g PBB,MBB,CIMB) are much better ROI compared to unit trusts.. Invest(Buy) in RM and later 5-8 years Pullout(Sell) in RM. Ratio Returns / Loss = 1:1

Will be better if you invest in USA / Europe markets? E.g Bank of America(BAC), Citigroup(C), JP Morgan(JPM), Las Vegas Sands(LVS), Beazer Homes USA(BZH), ETrade Financial(ETFCD) ..etc .. Their divident payouts were in USA currency.. Any single price movement(uptrends/downtrends) will have huge impacted due to currency conversion rates.

How to know when to pour in your money in stock investment?
e.g Read / Understand many financial reports(cashflows/balance sheet ..etc) through magazine/books. Basic step is by seeing the central banks(Federal Reserves/BNM/Central Bank ..etc) hike / reduce interest rates . They will hike interest to cover inflation during good/hot economies or vice-versa during asian financial crisis/credit crunch / deflation ..etc

Have a great day. Enjoy Learning !!

So buying UT better or buying bank share is better?? You decide…

just my 2 cents

Article is misleading. The claim that the mutual fund company is keeping 80% is misleading. FYI, the average NET of fee return is 8%. It should read that in this example, the investor is missing out on 80% of the possible return over this time period. The mutual fund (according to this example) is getting 2.5%… not 80% of the potential return. It’s simple math. Also, it is misleading to say that indexes are better than funds. Some are, but most are not. A mutual fund that consistantly underperforms against its index will eventually be closed due to lack of investors. In reality, it is not difficult to find a mutual fund that consistantly outperforms its respective index. Keep in mind, when you buy an index fund, you buy the bad with the good. Most mutual fund do an excellent job at screening for quality companies. Finally, some mutual funds have expenses illustrated in this article. Many do not, they are much lower. Regardless, who cares what the cost is as long as there is a better than average net return on your investment. For example: If you had a black box, and on one end of that black box you were able to put in a dollar and after a year on the other end of the box it spit out two dollars. Now I ask you, do you really care what happened inside of that box? Not as long as twice as much money continues to come out of the other end. Mutual funds are not different. Mr. Kiyosaki, I’m a fan. But I am extremely disappointed in you for publishing this article.

HOW to overcome this problem? Mutual fund, over the long-term is considered a liquid investment tool to hedge (or at least keep the money value). The most important KEY: DIVERSIFIED your portfolio (FD, UT, Stock, GOLD, house, KNOWLEDGE, etcs)

For your information i already do online switching.Actually unit trusts today is more than that and everytime i had the Best fund from many reputable company for me to offer, equip with asset rebalancing .

Small investors can achieve stock diversification easily with fund.
They do not have the capital to do so directly with stock.

I think it depends on one’s strategy and goals (and maybe know-how and know-who).