Malaysia 2018 - Post Elections

Were you effected? Were you impacted by the recent elections. Like it or not, actually many of us were impacted, be it directly or indirectly. One thing I realized, which I knew well about but didn't practice myself is fund switching.

As many of us either have unit trust investments via our hard earned cash, via EPF or as part of our Investment Linked Insurance Product (ILP) The question is how many of us thought that the results were going to be in favour of PH, and if yes, did we anticipate that in the near short term the markets could fall. Thankfully I managed to sell of some of my funds, which was decent timing as the market was high right before the elections. But I had still had a decent amount especially in my ILP Insurance funds.

Here's an example of a comparison between the performance of equity heavy funds vs bond or money market fund performance during a market downturn which we are currently (as of Jun 2018) going through.

As you can see, give it a guess. The red and green line are Malaysia equity heavy funds. Where as the Black Line has been going up steadily during this 'tough' time of market drop. The black line is AMB Income Trust fund is a fixed income fund. Generally over long periods of time, equity funds do outperform fixed income funds, BUT if you time it decently enough, and use the free switching facility provided by your unit trust company, you should be able to maximize your returns, OR at least, minimize your risk when you could anticipate market volatility. This concept should work for other fund managers as well. Please double check. 

Why is this important, especially in your investment link insurance? The reason is, it is from this investment account $$ that will be used to pay for your premiums at a later stage when we age as our premiums get more expensive. If you are looking for someone who can guide you further and give you perspective on how best to make your insurance selection including fund selection, try WhatsAp'ing here.