Friday, July 31, 2009
Tuesday, July 28, 2009
So as you may see, sometimes we want to tick size to be as small as possible, some other times we want the tick size to be larger than our transactional cost.
When you put both graph together, the current / old tick size vs the future / new ones, you get below graphs ...
1. Long term investors can now accumulate expensive stocks with much cheaper cost, especially those between RM 3 and RM 10.2. The only speculatable ground is now reduced to below RM 0.50 arena only.
Monday, July 27, 2009
Friday, July 24, 2009
Table 1: Current and New Tick Sizes on Bursa Malaysia
|Securities Price||Current Tick Size||New Tick Size|
|Below RM1.00||0.5 sen(1/2 sen)||0.5 sen (1/2 sen)|
|RM1.00 to RM2.99||1 sen|| 1 sen|
|RM3.00 to RM4.99||2 sen|
|RM5.00 to RM9.99|| 5 sen|
|RM10.00 to RM24.99||10 sen||2 sen|
|RM25.00 to RM99.98||25 sen|
|RM100.00 and above||50 sen||10 sen|
Finance is a big complicated topic, Personal Finance on the other hand is really simple where the dumpest guy on the world can easily get 'everything' he wants. The 2 topics are hugely different.
Venue: Sime Darby Convention Center, Bukit Kiara, Sri Hartamas
Price: RM 92 pp
RM 80 pp when purchasing 4 or more tickets
Tickets sold by Ticketcharge: 03-2241-9999
(click on image to enlarge)
Do you aim to be:
- a Fund Manager
- an Equity Analyst
- a Forex Trader
- a Private Equity player
- an Investment Banker
- a Corporate Finance executive
- an equity Dealer
- a Bond Trader
- a Hedge Fund analyst
The talk is by S Dali of Investing Scents weekly business column in The Star. He is an ex fund manager and head of research, for local and foreign investment houses, having worked in Sydney, HK, Tokyo, Singapore and KL.
- the right degrees for the right careers
- ranked universities vs local universities vs second tier foreign universities
- specific subjects and majors
- is CFA the passport to success
- are you suited for the financial markets or do you just want to get rich quick
- getting through the front door, reworking your resume
- indirect passages to sound financial markets' careers
- what if your degree consisted of poor grades
- critical success factors to have for viable financial markets career
- remuneration scale for financial markets
- command of English, essential or unnecessary
- things financial markets employers look for
- is financial markets for you
- things they don't teach at business classes
Wednesday, July 22, 2009
At first the Farmer can make 4 meats in 4 hours and 16 potatoes in another 4 hours. The Rancher can make 24 meats and 48 potatoes like wise.Then when they started trading, Farmer concentrates on making 32 potatoes in 8 hours while Rancher makes 18 meats in 6 hours and 12 potatoes in the rest of 2 hours. Farmer gives Rancher 15 potatoes, Rancher give Farmer 5 meats.After trading, Farmer has 5 meats and 17 potatoes vs previously 4 and 16. Now Farmer has more ! Rancher has 13 meats and 27 potatoes, Rancher has even more than Farmer's more!
Tuesday, July 21, 2009
a longer insurance series may follow soon after this mutual fund series ending in a few more articles.
Are you sure you want to pay the extra fee just because they did good in the past ?Do you pay more just because you agree with the investment objective of the fund ?How about just because a certain fund has some of the stocks you want to buy anyway ?The agent is your friend, she did a great sale talk ?
Sometimes I like to shop in a particular grocery store more than another even if some items are slightly more expensive. That is because the store owner is really friendly and knowledgable. He can answer most of my questions and I really don't mind letting him earn the extra cents.
Thursday, July 16, 2009
- Fund managers are incompetent
- The only people who gest Rich are those agents, not the investors!
- mutual fund fee 5-6% are terribly HIGH!
- mutual fund returns are LOW!
- mutual fund is NOT a PASSIVE investment, you may as well buy stocks!
- Buy Low Sell High is applicable in mutual fund, why should I keep the fund knowing the price will drop?
- Mutual fund cannot be compared with FD, their risks are different!
- If you look at the world's best investors of all time, in average they out perform the market by 6.46%. This includes Warren Buffet, Benjamin etc. Most of the fund managers may not be as good as the Gurus, but their past historical performance is not that far apart.
Most people who curse at fund manager's competency are due to their unrealistic expectation. Some ofcourse is due to their own unhappy experience. Either ways, generally fund managers' performance is at par but definitely has room to improve.
- Let's face some factual figures. The most a mutual fund business can squeeze out of the investors are the 5-6% no matter how they distribute among their agency force. Insurance can be up to 40% while MLM structure usually allocate more than 55% in similar distribution.
So if one is worry his agent gets richer just because he invest, mutual fund is probably NOT the first and major concern relatively.
- The 5-6% High Fee is VALID but may not be as bad as it was described. For example, a comparable stock investment with 0.7% fee could have an effective rate of 2.31% vs the mutual fund's 5.5%. So buying one mutual fund is as if buying 2 stock counters.
- See 1). Get the expectation right. No one becomes rich because they buy mutual fund. But when done right, many retire wealtheir than they initially thought of.
- Yes, mutual fund CAN BE an active invesment like in 6). But MalPF preaches not to use it that way, one should use mutual fund the PASSIVE ways.
- If you know the timing of a market trend, mutual fund and dollar cost averaging concepts is NOT something for you. Buying a stock can give you exercise your timing concept with lower fee. This is an example of how to.
Are you sure you are not an agent earning commission when you encourage people to speculate using mutual fund ? Are you sure there is no conflict of interest with your clients portfolio ?
- As mentioned above, the top part of mutual fund ie. equity fund cannot be compared with FD but the lower part of mutual fund ie. capital guarantee fund, money market fund etc. CAN.
But if you really put the numbers together, you may realize its just another looks-good but pratically almost everything stays the same. For example, the typical BLR in the market now is 5.5% and the common offer is BLR - 2.2% so
BLR 5.5% - 2.2% = 3.3%
MLR 4.7% - 1.3% = 3.4%