Wednesday, August 19, 2015

Are you Managing Your Unit Trust Investment?

Hi!
As i am writing these words, i am pretty sure that most of you are aware of the Malaysian economic crisis condition that we are facing now.
In fact, all other countries be it in the European Union, North America, Far East, Middle East, the US or the Asian bloc, they all are going through some level of economic turbulences that is impacting their growth.
The glut in crude oil reserve globally added with the strengthening effect of the greenback currency against most major trading countries have so far raised almost systematic risk that endangers the economic well-being of developed and emerging countries.
Back in our own backyard, Malaysia's growth condition also has been threatened by the above mentioned systematic risk. Malaysia has another problem that other countries are not facing. Political stability risk facing by Malaysia is even more jeopardising the nation's economic health.
Corruption and bad governance of the current Government is not helping to heal the bruised economy at all.
As a result, KLCI index took a heavy beating due to capital outflow effect. Most investors are losing their appetite to invest in either in stocks or bonds. This capital outflow resulted the index dipping down below the 1600 point (1562.88 at closing time Aug. 18, 2015).
Our exchange rate is now about RM 4.00 to a US dollar and the RM value is further anticipated to head south next month when the FED RESERVE of US increased the much anticipated interest rate to boost GDP growth. If this take place, our Ringgit value will further depreciate to possibly RM 4.20 to a US Dollar.
Most investors in Malaysia are now already feeling jittery thinking of their investment placement in the local bourse counters. The question is what are they going to do next? Are they going to redeem their placements, or just leave it?
And as for the investors who have bought Unit Trust Scheme, what would be the best action now?
I will share some pointers in my next article.
See you then!

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