I don’t believe in buying shares and to speculate. I have seen too many people getting burnt due to high investment in shares. My aunt invested S$2.5 million and it was reduced to S$500,000. My mother lost a lot of money in shares and my dad lost the amount of 2 proton wiras. My mum max out the limit and used my name to buy more shares in the past. Similarly, unit trusts are a group of shares managed by other people for you.

As a habit, I normally put my money in Fixed Deposits (FD) at 3.7% per annum. Though it is less profit, but you will never lose your capital and gain the 3.7% extra at the end of the year. This year alone, I lost RM4,000 within 6 months after my dad instigated me to buy unit trusts saying I will definitely earn more money than FD. His greed for more money make me lose more as a result of investing RM$30,000 taken out from my FD. First of all, I had to pay for the manager’s fees at 5.5% totaling about RM1,650. This is a loss in capital already. The next few months my unit trusts drop below what I invested in and cause a further loss of about RM2,500. I have had enough! So, I sold off all of it at a loss of about RM4,000 and put back into FD. That’s the lesson I had to pay for listening to my dad who had sold a semi-detached house to play shares. His RM200k were reduced to RM20k in the end.

This entry was posted on Saturday, April 12th, 2008 at 5:46 pm and is filed under Miscellaneous. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.