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Personal Investment Planning
 

Personal Investment Planning

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    Personal Investment Planning Personal Investment Planning Presentation Transcript

    • Personal Investment Planning Disclaimer: The information contained in this document is intended only for use during the presentation and 1 should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents.
    • Content • Principles of Wealth Accumulation • Investment Basics • Traps & Checks • Risk & Rewards • Power of Compounded Investment Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 2
    • Content • Principles of Wealth Accumulation • Investment Basics • Traps & Checks • Risk & Rewards • Power of Compounded Investment Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 3
    • Principles of Wealth Accumulation • Meet Retirement Expenses • Hedge Against Inflation • Prepare for the Expected & Unexpected • Minimise Taxes & Reduce Debts • Beat Your Goals Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 4
    • Principles of Wealth Accumulation • Growth over time – Compounded growth • Investment vs Speculating Activities • Investment – Investment requires long term commitment – Measured in years – Grow money over time ahead of taxes & inflation – Beat taxes & inflation – More predictable returns (averaged) • Speculating – Short term – Unpredictable returns – Potentially very high or low returns – High risk Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 5
    • Principles of Wealth Accumulation 1. Retirement 2. Education Fund Rank Goals 3. Personal Wealth Accumulation 4. Capital Preservation/Inheritance 5. Business Continuity 1. Investment Term – Short Term Time Horizon – Medium Term – Long Term 2. Point of Investment 1. Choosing the Right Investment(s) Effective Management of 2. Investment Methods Resources Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 6
    • Managing Investments • Know your own needs • Understand asset classes • Know how the market functions • Structure a portfolio • Take the plunge & monitor progress Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 7
    • Content • Principles of Wealth Accumulation • Investment Basics • Traps & Checks • Risk & Rewards • Power of Compounded Investment Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 8
    • Investment Basics * Source: Securities Commission Malaysia - Figures quoted as at June 2005 Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 9
    • Investment Basics Purpose of investment i.e. to achieve capital appreciation, high dividend yields or a consistent income yield over a period of time. Depending on the investor’s profile, net worth and financial situation whether it is the person’s retirement savings, hard earned monthly savings or excess cash. Point of investment close to retirement, height of career & term of investment etc. Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 10
    • Investment Basics Choosing the Right Investment • Time Horizon – At what stage of the ‘life cycle’ are you? – How long to do plan to invest? • Investment Objective/Goals – Marriage – Home – Family – Education – Retirement – Capital preservation & Asset Accumulation – Planning for Uncertainty • Risk Appetite – How much risk are you comfortable with? – What is your Investment profile: risk tolerance, age, liquidity, required rate of return, current income, capital preservation, inflation, investment horizon Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 11
    • Investment Basics • Do-It-Yourself: • Professional Management: – Through a broker, Unit Trust agent or – Fund Manager personal online trading • Considerations: • Considerations: – Investment Process – Time – Suitability of investment product – Knowledge – Quality of people & Service – Access to timely & accurate – Track record – past performance information – Fees – Cost – Relationship? Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 12
    • Investment Basics Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 13
    • Financial Objectives Target returns that beat inflation at tolerable risk levels over an acceptable time horizon Financial Financial Wants Needs Security Growth Fun SHORT TERM / LONG TERM OPPORTUNISTIC EMERGENCY MONEY MONEY MONEY Savings/Current Accounts Unit Trust Funds Direct stocks and bonds Fixed Term Deposits Structured/Discretionary IPOs Insurance Products Islamic Single theme funds Capital Guaranteed Funds REITs Lottery Expertise Timing Security Discipline Luck Diversified Portfolio Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 14
    • Content • Principles of Wealth Accumulation • Investment Basics • Traps & Checks • Risk & Rewards • Power of Compounded Investment Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 15
    • Traps & Checks Understand Investment variables Herd Mentality solution Employ basic Guided by emotion investment principles Power of regular savings & Over-gearing compounded interest Lack of planning & Employ basic investment diversification principles Lack of access to Understand Investment current information variables Invest to beat inflation & Excessive expectations let time grow your money Failure to Understand Know & Understand risk Your Risk appetite Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 16
    • The Roller Coaster of Investor Emotions “Wow, I feel great about this “Temporary investment.” setback. I’m a long term investor.” Euphoria Point of maximum Thrill Anxiety financial opportunity Denial Excitement “Maybe the markets Fear just aren’t for me.” Optimism Optimism Depression Relief Panic Hope Point of maximum financial risk Capitulation Desperation Despondency Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 17
    • Content • Principles of Wealth Accumulation • Investment Basics • Traps & Checks • Risk & Rewards • Power of Compounded Investment Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 18
    • Risk & Rewards • Investment Risk – Changes in sectorial performance & favour due to economic, political & environmental factors • Interest Rate – Changing market interest rates will affect Fixed Income investments in particular • Inflation Risk – Changes in price of goods & services • Market Risk – Change in political & social conditions • Business Risk – Exposure to most of the above, depending on geography & sector Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 19
    • Risk & Rewards of different Asset Classes • Money Market Funds • Balanced • Capital • Bond Funds Funds Growth • Index Funds • Islamic funds Funds • Income • Aggressive Funds Growth • State Funds Funds • REITs • Islamic Disclaimer: The information contained in this document is intended only for use during the presentation and Funds should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 20
    • Content • Principles of Wealth Accumulation • Investment Basics • Traps & Checks • Risk & Rewards • Power of Compounded Investment Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 21
    • Power of Compounded Investment Thousands 30 Years of Compounded Savings 800.00 • Scenario 1: 700.00 • James decides to begin early investing 600.00 regularly, a sum of RM500 monthly, in an investment vehicle that will yield her an average 500.00 of 8% per annum over the next 30 years till 400.00 retirement. At the end of 30 years, the total sum 300.00 of her investment would have amounted to 200.00 RM734,025.00. 100.00 0.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Year Thousands 25 Years of Compounded Savings • Scenario 2: 500.00 • If James decides to begin investing 5 years 450.00 later, a sum of RM500 monthly, in a similar 400.00 350.00 investment vehicle that will yield him an average 300.00 of 8% per annum over a period of 25 years, till 250.00 retirement, her total sum of investment would 200.00 have only amounted to RM473,726. 150.00 100.00 50.00 0.00 1 3 5 7 9 11 13 15 17 19 21 23 25 Year Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 22
    • Power of Compounded Investment Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 23
    • DISCLAIMER • This presentation was prepared by Hwang-DBS Investment Management Berhad (Co. No. 429786-T). The information contained in this presentation has been obtained from public sources believed to be reliable and the opinions, analysis, forecasts, projections and expectations (together "Opinions") contained in this presentation are based on such information and are expressions of belief only. No representation or warranty, expressed or implied, is made that such information or Opinions is accurate, complete or verified and it should not be relied upon as such. Information and Opinions contained in this presentation are published for recipients' reference only, and are not to be relied upon as authoritative or without the recipients' own independent verification or in substitution for the exercise of judgement by any recipient, and are subject to change without notice. • This presentation is not, and should not be construed as, an offer document or an offer or solicitation to buy or sell any investments. • A copy of the Master (This Prospectus shall hereafter supersede and replace the current prospectus and supplementary prospectus of Hwang-DBS Select Income Fund which will expire on 5 January 2006), Islamic Master , Select Cash & Select Enhanced Deposit Prospectuses have been registered by, and lodged with, the Securities Commission. These Prospectuses have been seen and approved by the directors of the management company of the unit trust fund and they collectively and individually accept full responsibility for the accuracy of all information contained herein and confirm, having made all enquiries which are reasonable in the circumstances, that to the best of their knowledge and belief, there are no other facts the omission of which would make any statement herein misleading. • The Securities Commission has approved the issue, offer or invitation in respect of the unit trust funds the subject of this Prospectus, and that the approval shall not be taken to indicate that the Securities Commission recommends the investment. • The Securities Commission shall not be liable for any non-disclosure on the part of the management company and takes no responsibility for the contents of the Prospectus, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Prospectus. INVESTORS SHOULD RELY ON THEIR OWN EVALUATION TO ASSESS THE MERITS AND RISKS OF THE INVESTMENT. IN CONSIDERING THE INVESTMENT, INVESTORS WHO ARE IN DOUBT AS TO THE ACTION TO BE TAKEN SHOULD CONSULT THEIR PROFESSIONAL ADVISERS IMMEDIATELY. • No units will be issued or sold on the basis of this Prospectus later than one (1) year after the date of these Prospectuses. Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation. Hwang-DBS Investment Management accepts no liability whatsoever with respect to the use of this document or its contents. 24