I have put some money, for the purpose of investing, into a unit trust fund where it concentrates an investment in China. At that times, I felt like — wow!! — Beijing at that time was going to hold the olympic games. There would be money pouring in like sambal belacan in the afternoon.
Well, I was a greedy bastard that I couldn’t care enough to follow the agent advice; this was a high risk investment. So, he couldn’t guarantee how big the magnitude of loss would be.
When there’s a high risk, there’s a high financial gain. That’s what I thought at that moment.
For those who are not risk takers and prefer the comfort of consistent returns can place their money in fixed deposits or in fixed-income instruments. That way, they know the exact returns from their investments no matter what is happening to the interest rate. The good news is fixed deposit rates will also go up giving the investor higher returns. However, bondholders will be negatively affected but will benefit those who buy in after the rate hike. The general advice is to keep yourself updated on local and world economic situation and adjust your investment portfolio when necessary to protect your money.
Here came the nightmare; the unit trust price per share plummeted from RM1.00 to RM0.20. I slapped myself in the head because I learned that the China economy was not doing very well despite the Olympic games — there’s a few natural disaster — that I could see my money flew away. Kaput.
I realized that I’m not the man who can dealing with the risk very wise. I could go mad, and stay mad for a long time if I experienced a financial loss.
I should stick with ASB then.