Equity Fund/Stock Fund Information

Equity fund will invest mainly in stock market. Among all the funds, equity fund is the most popular investment fund. There are many types of equity funds. Below are some examples:

Growth fund – this fund will mainly invest in stocks that have high potential for capital growth. High growth stocks may not pay regular dividend. Therefore, the gain is mostly from capital gain instead of dividend.

Dividend fund – this fund will mainly invest in stocks that pay regular dividends. Generally, stocks that pay regular dividends will be less risky than capital growth stocks.

Index fund – this fund will try to replicate the performance of certain market index such as FTSE Bursa Malaysia Kuala Lumpur Composite Index. Therefore, the fund will invest in the component stocks of market index. Normally the fund management fee for this fund would be lower. This is because the management rule is quite simple: use the index as benchmark.

Small capital fund – this fund will invest in company with small capital. The idea is that it is hard for a big company to grow aggressively but it will be easy for small company to grow by leaps and bounds. At the same time, small company is not as stable as big company. The possible high return is comes with high risk.

Investment Principle Information & Understanding

Which type of funds will provide highest return?

It is very hard to say. There is an important finance principle to be remembered:

• High risk high return,for aggressive & moderate investor
• Low risk low return, for conservative investor

The higher the potential return, the higher the risk of loss. Therefore, a professional & experienced public mutual investment consultant is needed for delivery a clear and understandable investment information to investor.

And, a proper diversify investment planning is important to reduce the investment risk and for better return.

The inflation rate will impact on your personal living style from time to time with or without your notification.

It is important for everybody knows about how to overcome it by generating higher returns through proper investment either by cash (bank saving or fix deposit) or through EPF members investment scheme.

You may share out this information here with any friend or relative from other locations to let them undertand more.

Alternatively, you may send your further enquiry to [email protected]