Investment management

I have been missing for some time. Sorry about that. Currently I am working and therefore have to spend more time on work rather than maintaining my blog. For the time being, I will focus less on my blog because I do not have internet in my house and I am being monitored by CCTV in the office. Sad sad. Today, I will share about investment planning in this post. This post will be very general as I am still not up to the level yet to teach you how to earn guaranteed income from investment. Else, I am the same as those ‘Skim Cepat Kaya’.

Why investment is so important? Without investment, people will be working days and nights to earn money. However, is this the correct way? Shouldn’t we let the money to work for us rather than we work for the money? Human, as the most brilliant creature in the world, should have the intelligent to control money instead of being controlled by money. Warren Buffet has become the second world richest guy in the world through his wisdom in investment. Without investment, maybe he is just like us, working hard daily for more money.

There are many types of investment such as unit trust investment, stock investment, property investment, FOREX investment and others. Each type of investment has its advantages and disadvantages. This depends on the people as different people have different risk tolerant, time and money available. Thus, you should choose the investment vehicle that will help you to reach financial freedom at the end.

Unit trust is suitable for those who do not have much investment knowledge but wish to invest. What you need to do is just give your money to the professional fund managers and they will manage the fund for you. Besides that, diversification is another feature of unit trust. The fund manager will have an investment portfolio which he/she will invest in different companies either in the same industry or different industries. This will help to diverse the risk. Unit trust is an effective tool for those who would like to invest in foreign countries such as China, Taiwan, Singapore and others. There are funds available to invest in those countries. For those who would like to invest overseas, unit trust investment might be a good choice for them.

Stock investment is suitable for those who know the stock market very well. They should know what is dividend, PE ratio, EPS, technical analysis and others in order to help them to make a wise decision before they do any investment. They should always do market analysis themselves rather than just hearing from other stock experts. Even stock experts will lose money if they invest. It would be better if you yourself can do the analysis of the market and the experts’ advice and make the decision. As suggested by Warren Buffet, people should invest in those industries that they are good in instead of investing blindly or following people’s advice.

Property investment is also another investment vehicle that people are focusing on. In China, Taiwan and Hong Kong, those rich become rich are due to property investment. The well-known figure in property investment in Hong Kong is Li Ka Shing. What you can do is just to look for those potential properties that would appreciate. You can buy them and rent them to earn passive income. Once the prices of the properties increase, then you can sell them and earn the money easily.

Investment can help you to earn more money but it can also cause you to lose money. We always hear that no risk no gain. However, we should not forget that got risk got loss. Therefore, use your intelligence and wisdom while making any investment.

I found this article is quite useful and related to this topic. You can get more information here. http://biz.thestar.com.my/news/story.asp?file=/2010/1/16/business/5465232&sec=business