Yeah… 2009 was a very good year for investment no matter in stock market or unit trust. The bull had been running from March until end of the year. It was a little bit flat at the end but up a lot in overall during year 2009.
FBM KLCI 2009 performance
Wow… I started to invest in stock market back in middle of year 2006. Lost lot of money until end of year 2008. Invested in some ‘dangerous’ stocks (gain fast & lose fast). Bought called warrants too. Whenever I look back those years, I laugh. How silly am I back then?
I started to invest late in year 2009. And set target to earn RM 20k in stock market that year. And I achieved it. However, it just managed to cover past few years losses. So year 2010 is a new start for stock investment. I paid lot of education fee and it’s time to gain it back.
What did I do in year 2009 compare to year 2006-2008? I studied stock research firm reports. Be aware of the current economy trend. I selected recommended stock to invest. I did my own analysis of course rather than follow research report blindly. I did not ‘play’ called warrant anymore. And invest in high dividend stock only. Focus on less than 10 stocks only like Tanjong PLC, Mudajaya and IOICorp… By the way, I did lend some money by using stock margin facility. It helped me to buy stock even that I did not have such amount of money. Else I could not reach my year 2009 target.
Looking forward ~ year 2010. This is not a smooth year to invest. Most of the stock price already reached the fair value in year 2009. But it is not impossible to make money this year. So I set another high target for me ~ RM 30k. Let’s fight for it. 
Do you trust stock research firm analysis? That’s the question that I always ask myself. I still remember that Maybank Investment Bank told its investors to SELL! SELL! SELL! Don’t BUY anymore on 5 October 2009.
Past 2 months FBM KLCI performance
FBM KLCI was at 1206.25 on 2 October 2009. And it is at 1265.74 now. That’s 5% increases. If you bought unit trust based on FBM KLCI index, you will have 5% returns within 2 weeks. However, if you trusted Maybank Investment Bank, you will loss some money (or did not earn).
Personally, I do read all the analysis from the experts. But I will use them as a reference only. They are also human and cannot predict the stock market trend. Therefore, always study and analysis more. I expected another spike in stock market. And it did. But how far can it go? That’s another question…
Amanah Saham 1Malaysia (AS 1Malaysia) is the latest fund coming from Amanah Saham National Berhad (ASNB). AS 1Malaysia will be launched on 5 August 2009 with 10 billion units of RM 1.00 each.
Amanah Saham 1Malaysia is opened for all Malaysians age 18 years and above. The minimum initial investment is 100 units and maximum initial investment is 50,000 units per unit holder (100,000 units for those aged 55 years). This is no sales / service charges for the initial offer period. This is good because most of the private unit trust companies like Public Mutual has 5% service charges.
This is not a chance that you can have everyday. Therefore, if you have extra money to save, better put in Amanah Saham 1Malaysia unit trust than fixed deposit (which have much lower rate). For stock traders… It’s time to earn more with this extra fund in the stock market. Do select the right stock at the right time. 
Do you invest in KLCI? Are you investing by buying unit trust or stock directly? I have been investing on both of them. Each of them has its own advantages and disadvantages. KLCI hit bottom at 801.27 on 28 October 2008. And it is 1026.78 on 8 May 2009. Stock and unit trust, which one will perform better?
KLCI result for last 1 year
The benchmark starts from 28 October 2008 until 8 May 2009. Public Mutual Unit Trust has lot of funds. I did some research on them which invest in KLCI. Public Aggressive Growth Fund (PAGF) is the best performer with 38.51% return and Public Index Fund (PIF) is the worst performer with 16.67% return. All the other Public Mutual Funds which invest in KLCI fall between 16.67% and 38.51% returns. This mean that you will get at least 16.67% if you invest in unit trust.
Let’s see the return if we invest into stocks directly.
PBBANK 1295 (PUBLIC BANK BHD) from banking sector was at RM8.20 on 28 October 2008 and RM8.60 on 8 May 2009. It gave RM0.25 dividend during this period. Therefore, total return for PBBANK is 7.92%.
BURSA 1818 (BURSA MALAYSIA BHD) from capital/financial/insurance sector was at RM4.90 on 28 October 2008 and RM7.25 on 8 May 2009. It gave RM0.078 dividend during this period. Therefore, total return for BURSA is 49.55%.
GAMUDA 5398 (GAMUDA BHD) from construction sector was at RM1.40 on 28 October 2008 and RM2.52 on 8 May 2009. It gave RM0.04 dividend during this period. Therefore, total return for GAMUDA is 82.86%.
BAT 4162 (BRITISH AMERICAN TOBACCO BHD) from consumer sector was at RM42.00 on 28 October 2008 and RM43.00 on 8 May 2009. It gave RM0.76 dividend during this period. Therefore, total return for BAT is 4.19%.
GENTING 3182 (GENTING BHD) from gaming sector was at RM3.94 on 28 October 2008 and RM4.98 on 8 May 2009. It gave RM0.04 dividend during this period. Therefore, total return for GENTING is 27.41%.
PETDAG 5681 (PETRONAS DAGANGAN BHD) from oil & gas sector was at RM6.70 on 28 October 2008 and RM7.85 on 8 May 2009. No dividend during this period. Therefore, total return for PETDAG is 17.16%.
IOICORP 1961 (IOI CORPORATION BHD) from plantation sector was at RM2.19 on 28 October 2008 and RM4.36 on 8 May 2009. It gave RM0.03 dividend during this period. Therefore, total return for IOICORP is 100.46%.
There is lot of stocks to invest. Above are just some of them that have positive return. Some of them are still in red colour ~ negative return.
After seeing all of these… Which one is better? Stock or unit trust? For beginner investor, better put more money at unit trust because the fund manager will look after it for you. For those who don’t want to study stock one by one also advisable to invest in unit trust. The risk is higher by investing directly in stocks but the return is better too.
Choose wisely…
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