Professional Investment Training always advises investor to save up some ready cash up to 3 to 6 months equivalent amount of expenditure before you go into investment. Every investor started any investment should have a long-term commitment view. Once invested, the capital should be committed to fight for long term battle in the field. There shouldn’t be any outside interferences come in between to disturb such investment commitment. Therefore, in case of any emergency, you should have an emergency fund to draw out to handle such need if ever it arises.
But the question now is where do you save such amount of your emergency fund?
Normally, most people will think of fixed deposit in the bank. The only question is what is the term should be used, half yearly, quarterly or monthly? Interest rate for different period will differ vastly. If you choose monthly, after many years you will feel regret if nothing happens.
A Better Saving Choice
I would like to share with you what I did with one of my emergency funds. I placed RM 6,000 into Fundsupermart with one of the bond funds some 6 years ago. Because I realized that bond fund has the characteristic of stability, yet the yield is slightly higher than fixed deposit. It will surely beat inflation rate. Such placement can turn into cash in just 5 business days as well.
What happened to that emergency fund right now? It turned out to be RM 7,283.50. But mind you, I saw about this figure even 2 years ago. But I took out RM1,000 to meet an emergency need for one of my sons’ high school educational budget.
Then this figure was actually a growth of RM 1000 from about RM 6000 two years ago. The rate of growth was about 10% per annum. The reason for such a high growth was that I did not place it statically in bond fund alone. When I saw rare really safe opportunity, I also intra switch a very small portion into equity fund. Hence it has increased the rate of return. I believe anyone who has more experience navigating investment around Fundsupermart platform, you will able to do this. It is very easy.
Saving with Better Advantage
Before I came to US to study, I was struggling with my EPF money. I have planned to use that fund to sponsor my son’s education in the USA. But I know I will no longer be able to withdraw that fund little by little to send out to my son if I no longer live there in Malaysia. Initially, I do not want to withdraw large amount, because I still want to enjoy the 6% steady dividend rate EPF has been giving us annually.
But then, out of alternative choices, I made a bold decision to withdraw a large amount and send out a small portion for short term need to the US for my son. (For short term, because US banks do not have good saving interest rate.) I placed the rest into AmBond fund in Fundsupermart platform. After merely three months, I saw that amount ballooned up 5.9% (which is an annual growth rate of 23%).
The reason was AmBond was booming at that right time there and then. With this increase, I don’t have to worry about the Ringgit being depreciated when converted into USD later on, nor do I have to feel I would miss the EPF dividend coming in later on. Because I will know that such placement will still have further room to grow.
When I am here already in the US, I found out there is no longer any investment facility here can be compared to Fundsupermart back home. Fundsupermart is not only an investment platform but can be used to manage your monthly cash flow too. If you are residing in Malaysia, I would encourage you to make the best use of such platform.
I believe some of you might be asking, how safe is it for such a facility? Does it have any insurance like the bank fixed deposit? For this worry, I would encourage you to make a little bit of investigation and study on your own. I made my own study many years ago before I pledge my trust in Fundsupermart (FSM). You might begin your study on Frequently asked question in FSM website itself about how secure for investor to place their money with them and search authentic investment websites under Malaysia Finance Ministry such as FIMM, or SIDREC for you to understand how FSM and any other investment vehicle operate under Malaysia investment security system.
I hope you will not miss such wonderful instrument to make your money work to you while you are still in Malaysia. If you miss this, you are actually missing a large chunk of your life fortune. Worst of all, you don’t even feel it.
For other advantages, please read other articles under “Money Management” in this website.
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This writer does not share any business connection with Fundsupermart, nor does he have any benefit in writing this article. This article was written purely on personal sharing purposes. Readers are advised to take any advices based on personal discretion wisely.