More response... (From PROMUDA group)

Someone responded to the first posting...
and here goes

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Zack,

Are you marketing unit trusts?

What you say is typical of unit trust agents - always focusing on the upside and never the downside.

You did not mention that unit trust investments are not capital guaranteed unlike EPF deposits or bank deposits. This means you can actually LOSE money in unit trust investments but NEVER in EPF or bank deposits. Theoretically, the worst you can do leaving your money in EPF is get zero interest but never lose your deposit.

The money-losing scenario played out when we endured the Asian Financial Crisis where 99% of the funds out there lost money when the stock market and currency rates crashed.

That said, such a crisis may or may not happen in the near term. But what the investor needs to be advised is the potential downsides of such investments. Yes, the returns in unit trusts could be higher BUT you have to weigh it against the risks. Read the fine print.

...Lip...

and here is my reply....

Hi Lip....

You're right.... there is no guarantee that the Unit Trust returns can beat EPF deposit or bank deposit. [at least EPF guarantees that their return cannot be lower than 2%]

However, I can share with you my 'little' investment of 3 years that has generated some return + your capital investment..

:-)

So, I disagree that investment in 'some' good fund managers, worst case scenario you'll end up with zero interest after minimum of 3 years investment.
*afterall.... UT is an alternative form of investment for middle to long term... and not 'skim cepat kaya' one..... so u kena sabar la sikit... :-)

We are a bit worried about our current inflation rate that keeps on increasing... (tak silap this year is somewhere around 3.2%-3.4%).
EPF has to assist us in giving better return from our hard earned money so that we can be assured comfortable retirement....
if the fund managers can give avg p.a return of 8% - 10% for 10 years period.... why EPF can only gives us 4.5% - 7%?

Yup, I agree with you that the higher the return the higher the risk and investors should be made known for that... :-)

rgds,
Ida