“Where or how should I invest $500 monthly, at low-risk?”

The following is my answer to a Quora question: “Where or how should I invest $500 monthly, at low-risk?” Even at low risk, you cannot go for the safest since the base objective is to still to have a higher return over the investment period than the rate of inflation. If you cannot match theContinue reading ““Where or how should I invest $500 monthly, at low-risk?””

Things all beginners should know about insurance

Perhaps you’ve read Before you buy: things all beginners should know about insurance by The Woke Salaryman. It is overall a good article, in simple language that helps laymen easily understand. However, I’d like to comment on a particular point of concern: Mistake 3 is itself a mistake. Covering yourself for up to 10 timesContinue reading “Things all beginners should know about insurance”

“At what age should I buy life insurance?”

The following is my answer to a Quora question: “At what age should I buy life insurance?” You should get it as early as possible. There are two primary reasons. The first is that you want to lock in your coverage when you are healthy, before the documented development of any medical condition. Once aContinue reading ““At what age should I buy life insurance?””

Fun(ds) Investing was born…

Yesterday, my team conducted our first webinar on investment, a private session. I used to be lost and clueless when it comes to investments, as I listened to monthly updates from Sani Hamid and Victor Wong back in Financial Alliance. I only started to focus on investment in late 2018, reading and understanding. Moving toContinue reading “Fun(ds) Investing was born…”

“Why do insurance salespeople pitch life insurance as an investment?”

The following is my answer to a Quora question: “Why do insurance salespeople pitch life insurance as an investment?” Whole life insurance is not an investment. A fully paid-up policy may function as a financial instrument, or as a form of leverage, but that does not make it an investment. A way that high netContinue reading ““Why do insurance salespeople pitch life insurance as an investment?””

“Is diversification really the key to a good investment?”

The following is my answer to a Quora question: “Is diversification really the key to a good investment?” The primary purpose of diversification is to mitigate exposure to any one section of the economy and spread the risk.  It is about risk management, and not growth.  It is not the key to good investment.  It is a hedgeContinue reading ““Is diversification really the key to a good investment?””

“What are sukuk bonds? How do they work, and how are they Islamic?”

The following is my answer to a Quora question: “What are sukuk bonds? How do they work, and how are they Islamic?” Sukuk is not, despite its name, a bond. A bond is a fixed-income security, a debt instrument for the sole purpose of raising capital. They are a loan agreement, between the bond issuer,Continue reading ““What are sukuk bonds? How do they work, and how are they Islamic?””

Understanding Consumer Staples and Consumer Discretionary in Investment

If you are investing in unit trusts (or mutual funds) or Investment-linked Policies (ILP), you would notice the terms “Consumer Staples” and “Consumer Discretionary” under Sector allocations when reading the fund factsheet. What are Consumer Staples? Consumer staples are essential products that include typical products such as foods & beverage, household goods, and hygiene products;Continue reading “Understanding Consumer Staples and Consumer Discretionary in Investment”

Some pointers to avoid being pushed or mis-sold an insurance product… (part 1)

It seems I have become a magnet for people enquiring on being pushed or mid-sold insurance products, occasionally getting such enquiries. So I thought perhaps I should write some pointers for customers out there: 1. Savings plans may not be for you Savings plans, though seemingly safe, may not be for you. “But savings isContinue reading “Some pointers to avoid being pushed or mis-sold an insurance product… (part 1)”

What is a hedge feature in a fund?

When investing in unit trusts or investment-linked policies (ILP), you would find in the list of fund choices fund names with the term “SGD-H” or “Hedged SGD”. What does this mean? A hedge is an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsettingContinue reading “What is a hedge feature in a fund?”

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