KLCI History in Graphs

FBM-KLCI History Presented in Graphs.

 KLCI History from 1995 to 2018.

 

 KLCI from Jan 2016 to  Apr 2019

 

KLCI from Jan 1995 to Dec 2014 (20 Years)

 

 KLCI from Jan 2015 to Jun 2018 (3.5 Years)

 

KLCI History of the Highest and Lowest Points since 1997

 

Do you see any 10 year cycles?
What will be the future of KLCI?
Put your best predictions in the comments below and we shall review them in the future.

Compare FBM-KLCI vs S&P 500 Index Monthly Changes

Compare FBM-KLCI vs S&P 500 Index Monthly Changes

Let Us Compare FBM-KLCI vs S&P 500 Index Percentage Changes on Monthly basis.

Have you ever wondered what is the relationship between Malaysia stock market and the USA stock market?

Interesting to view the effect in a graphical and a table. 

 

Table below is on the FBM-KLCI and S&P 500 index closing at the end of the months since Mar 2017.

With a quick observation, FBM-KLCI goes sharply lower in May and Jun 2018.  While the S&P 500 came down from the high in Jan 2018.

Below is the performance comparison between KLCI and SP500 from 1 Mar 2017 to 29 Jun 2018. The blue line is SP500, while the black line is KLCI.

Source: https://quotes.wsj.com/index/MY/XKLS/FBMKLCI/advanced-chart

What else can you notice on the numbers and percentage changes?

Do they look like they have a quite a negative correlation with each other? 

If  you are looking to diversify your investment, can these 2 markets be your choices for diversification?
Leave your comments below. 

Compare FBM-KLCI Change vs Foreign Fund Flow

Let Us Compare FBM-KLCI Change vs Foreign Fund Flow

Have you ever wondered what is the effect of the Net Foreign Fund Flows of Bursa Malaysia on the FBM-KLCI?

Look at the graph and table below on the effect.

Below is the FBM-KLCI month end closing points, monthly change percentage and the Foreign Fund Flows amount in RM Billions.

What can you notice on the numbers? 
Do they look like they have a high correlation with each other?

Can we say that Foreign Fund Flow have high effect on FBM-KLCI? Leave your comments below.

Education Planning Related Articles

Education Planning Related Articles

The rising cost of higher education

https://www.nst.com.my/education/2018/01/320953/rising-cost-higher-education

 

The cost of children's education

https://www.nst.com.my/news/exclusive/2017/11/299559/cost-childrens-education

How much would it cost to pursue higher education in Malaysia?

https://www.nst.com.my/news/2017/03/223461/how-much-would-it-cost-pursue-higher-education-malaysia

Good education, but at what cost?

 https://www.thestar.com.my/opinion/letters/2016/03/15/good-education-but-at-what-cost/

Cost of Studying and Living in Malaysia

https://www.studymalaysia.com/international/why-study-in-malaysia/cost-of-studying-and-living-in-malaysia

How much does education cost around the world?

https://www.master-and-more.eu/en/how-much-does-education-cost-around-the-world/

Why Plan for your Child's Education?

https://www.schoolmalaysia.com/resources/expertview_article.php?id=planning

Is Tertiary Education Only for the Rich?

There is a very interesting infographic showing the Education planning for tertiary education at different countries.
http://says.com/my/lifestyle/how-much-do-malaysian-parents-need-to-save-ringgits-to-send-their-kids-to-university

Easily Find & Contact (>100) Unit Trust Consultants Near You

Easily Find & Contact (more than 100) Unit Trust Consultants Near You.
 

Have you ever faced a situation where you can't find a Unit Trust Consultant when you need one? 

Now, here's some help for you. 

We have compiled these Unit Trust Consultants Facebook profiles and grouped them by areas. As their profiles are in Facebook, you can know more about them. There are links to the Unit Trust Consultants grouped by different States. In each State, there are groups by town and even Tamans.

Most of the Unit Trust Consultants have their contact details in the Facebook profile.You contact them directly by phone, leaving a Post or even use the Facebook Messenger.
 
For your convenience, you can contact those who are located near you. By being near you, they will be able to provide faster services and shorter traveling time.

As you are in the same area as the Unit Trust Consultants, your needs are understood better. You can discuss your needs with a local Unit Trust Consultants who are familiar with your surrounding areas.


As Unit Trust Consultants are friendly people, they will provide information and answer your inquiries regarding financial planning. Discuss with them about your future goals and concerns about your plannings.

You may have some inquiries on how to plan for your Retirement, Children College funds, setting up a down payment for a new house. In fact any plans you have, can be discussed. Your confidential information are assured as the Unit Trust Consultants are also made aware about the Data Protection requirements.

The Unit Trust Consultants have to pass the Unit Trust Exam before they are licensed to provide consultation about Unit Trusts. The exam topics include Code of Ethics and Professional Conduct.

Ask them to share their experience, knowledge about investments and other financial needs. You will be surprised on what else they know. 


Here are the links grouped by different states. 
As we are still compiling and adding more areas, do come back and check for a more updated lists.

• Johor 
•  Batu Pahat, Johor Baru, Kluang, Muar.
• Kedah
• Alor Setar, Kulim, Sungai Petani.
• Kelantan
•  Kota Bharu.
• Klang Valley
• Ampang, Bangi, Bangsar, Cheras, Damansara, Damansara Perdana, Jalan Ipoh, Kajang, Kelang, Kepong, Kota Damansara, Kota Kemuning, Melawati, Petaling Jaya, Puchong, Shah Alam, Sungai Buloh, Taman Gembira, Tropicana,Wangsa Maju.
• Melaka
• Melaka 
• Negeri Sembilan
•  Seremban
• Pahang
• Kuantan, Temerloh 
• Penang
•  Butterworth, Bayan Baru, Georgetown, Penang Island, Tanjung Bungah, Tanjung Tokong, Sg Dua.
• Perak
•  Ipoh, Sitiawan, Taiping
• Sabah
•  Kota Kinabalu, Labuan, Sandakan, Tawau.
• Sarawak
•  Bintulu, Kuching, Miri, Sibu
• Terengganu
•  Kuala Terengganu, Kerteh.

Do click on the links and search for a Unit Trust Consultant near you. 

We do wish you have a fruitful discussion towards a better prepared future.

Is it necessary to beat the benchmark?

Is it necessary to beat the benchmark?

For your investments, it is always nice to have your investment to outperform the benchmark. Outperform also means getting a better or higher return than the comparison used.

While it is good, it is not necessary.

Why? Because the fund you invested is slightly different from the benchmark used as the comparator.

Stock market index are commonly used as the benchmark for unit trust funds.

The stock market index consists of selected companies that are part of the Exchange.
For example, the Kuala Lumpur Composite Index (FBM-KLCI) consists of the largest 30 listed companies in Malaysia.

If your fund uses the FBM-KLCI as its benchmark, the fund performance report will have your fund and the FBM-KLCI performance graph plotted together.

Most of the funds will outperform its benchmark.

However, what happens when your fund under performed the benchmark.
Do you need to worry about the fund managers' performance?

There is few things you need to know about the differences between the fund and its benchmark. The most important thing is that they are not exactly the same. Stock Market Index consists only Stocks in that market the index represents.

For example, the FBM-KLCI only consists of stocks listed in Kuala Lumpur Stock Exchange (KLSE). For a typical Malaysia equity fund, a look at the fund reports will show you that the fund consists of more than just stocks.

The fund has equity, bonds and money market assets. Furthermore, the stocks consists of Malaysia and other countries stocks.

Another important difference is that the components stocks are more than the index companies. For FBM-KLCI, it is only 30 companies. For a Malaysia equity fund, there may be 50 different companies. The weightage (invested percentage) of each company is also different from FBM-KLCI weightage.

Also, most overlooked factor is the RISK factor.

As the fund are more diversified and thus less risk. When you add more of your investment money at different market conditions, you also diversify the Timing Risk. When market is high, you buy less. When market is low, you buy more. In the long term, your cost will be averaged between the low and high prices.

Nobody can know the exact highest or lowest price in the future. We can only determined the lowest and highest price point that had occurred in the past.

When you invest into an equity fund, the fund is buying many stocks. Stocks are ownership of companies listed on the Stock Exchange. Companies must make profits in order to survive. All the staff are employed there to make money for the company. From the Board of Directors, CEO, CFO, Senior Management, Middle Management, Managers, Executive, Admin, Receptionist, to the Cleaners are all working to help the companies to make profit. If not, the company will close sooner or later.

So, do not worry. As long as your investment is giving a positive return in the long term, it is not necessary to beat the benchmark.

More related articles:


Investment Under Performed the Benchmark. Good or Bad News? http://highlevelrules.blogspot.com/2018/06/investment-under-performed-benchmark.html

4S of Investment.
http://highlevelrules.blogspot.com/2017/06/what-investors-want-in-their.html

Why Equity Fund Performance Different From Benchmark.
https://highlevelrules.blogspot.com/2017/07/why-equity-fund-performance-different.html

Investment Report Terms

Investment Report Terms

Link to 25 Market Outlook Report Terms You Should Know 
Click here: http://highlevelrules.blogspot.com/p/investment-terms.html 

Have you ever wondered what the writer means when you read the Market Outlook or Investment Reports?
 
For example, Consumer Cyclical, Headwind, Basis Points.

There are so many terms that only the "Finance Savvy" people will understand. For the rest of us, what they mean is a BIG BLACK BLUR.

You can find the terms by asking Mr and Ms Google. But then, you get millions of more jargon explanations.

Now, there is a web page that gives you 25 Common Terms used in a market report.

You can find the link here: http://highlevelrules.blogspot.com/p/investment-terms.html

There is also a few links to financial websites that gives the terms more meaning listed on the page.

Hope this helps to start your journey into the Financial World. 
Understand the Road Map first ..... :).



 

Education Planning Using Microsoft Excel File.

Education Planning Using Microsoft Excel File.



Where to find FREE Education planning software? 
You can search the web for many tools.

But, there is one that is FREE and is in Microsoft Excel format. You can customize the Spreadsheet to your liking. No Password, No file protection. You can add, delete, modify, change color, etc.

It allows you to set your child age, year to go to college/university. You set your own inflation rate and Rate of Return.

Do try out different combinations of different rates. 
Set the BEST case scenario with higher returns and lower inflation. Set another calculation with WORST case scenario with lower returns and higher inflation. 
Set the EXPECTED case scenario with numbers between the BEST and WORST case.

Note that Education Expenses are very short period. Meaning, you save for many years and have to spend all within 3 to 4 years. So the money during the education years are to be placed into less volatile investments. It is better to put into a Fixed Deposit account, Money Market fund or Bond fund to preserve the capital. 

You do not want to risk the money by putting into the Stock Market or Equity funds during your child is in the College or University years.

You can download the Excel file from this link:
https://seanexcel.weebly.com/blog/invest-expenses-for-education-plan

More explanations on about this Excel file from this link:
https://highlevelrules.blogspot.com/2017/09/invest-expenses-for-education-plan.html

Retirement Planning Using Microsoft Excel File

Retirement Planning Using Microsoft Excel File.



Where to find FREE Retirement planning software? 
You can search the web for many tools.

But, there is one that is FREE and is in Microsoft Excel format. You can customise the Spreadsheet to your liking. No Password, No file protection. You can add, delete, modify, change color, etc.



Note that expenses during your retirement years are for a long term. The withdrawals are small amounts and planned to last as long as possible. 

You may want to move a certain amount of the money into Bond fund or Money Market funds. The sum can be expenses for the next 2 years. You preserve the capital for 2 years as you do not want to risk your money into a volatile market.

Let's say during your retirement, the stock market crashes. If you had put all your money into the Stock Market or Equity funds, the value will drop according to the Stock Market performance. Your hard earned investment amount dropped. 

As Bond fund and Money Market fund are more of capital preservation, the fund values will not lose much. In fact, they can still go higher when the stock market crashes.




You can download it from this link:
https://seanexcel.weebly.com/blog/invest-expenses-for-retirement-plan

More explanations from this link:
https://highlevelrules.blogspot.com/2017/09/invest-expenses-for-retirement-plan.html

How to find a Unit Trust Consultant near me?

How to find a Unit Trust Consultant (UTC) near You?

Have you wondered where to find a Unit Trust Consultant (UTC) that is near to your house or office? 

You may be staying at a small town or kampung. And you have heard a lot about Unit Trusts. You wonder who can you ask more information. Searching the internet will give you Millions of results. 

Even then, you will find many names and advertisements about Unit Trusts.

With this web blog, you find the listing of many Unit Trust Consultants all over Malaysia, categorized by State and Area.

The listing will direct you to their Facebook profile. You can know more about the Unit Trust Consultant and you can contact one or a few that you feel you are comfortable with.

Here is the link https://utclist.blogspot.com/