Continuing from previous article, we talked about some of the reasons for the poor response to AS1M from the public. Let's look at the reasons again and here's why i think these reasons are not very important deterrent factors for you to invest in AS1M:
- Lack of dividend payout track record - this is a newly launched fund, hence, there is no historical record how good of the dividend payout is. However, judging by the historical trend of OTHER fixed price unit trust funds by PNB, i think it is fairly safe to ASSUME that AS1M might have a payout of 6%. Also, next year's payout is the INAUGURAL payout, therefore, i guess the government will want to look good and declare good dividend rate to attract more people to invest in this fund.
- AS1M is not capital guaranteed - even though technically AS1M is not a capital guaranteed fund, neither are all the other fixed price unit trusts funds. So, why worry now?
- Lack of purchasing power - Malaysians have very high savings rate, probably around 40% of their income. Even though some might have invested in Sukuk government bond, ASM and ASW 2020, I dont think Malaysians are totally broke. Just have a look at those guys that queue for days for the million dollar properties new launch.
So there you are, what's stopping you from investing? Of course, as a basic rule of thumb, just invest the amount that you can afford to lose. Just like all other investments.
Wait no more! Have some faith in yourself. I'm going to invest in AS1M!
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