Friday 6 February 2015

The risk of not investing !

Latergram.
Actual announcement date was on 19th January 2015.

As many had already known, my portfolio mainly divided into stock equity & unit trust and one of the unit trust I hold is Eastspring Investment Asian High Yield Bond fund which pays monthly dividend in term of cash distribution.

On 19th January 2015, Eastspring Investment announced that they will raise their distribution payout from 5% to 7% per annum. (See below)


I think this is really a great news to the unit holders especially for me (in the stage of accumulation). This simply mean that with the same amount of money invested, now the return is higher. 

Often i hear people say "investing is risky!"
I personally think "NOT investing is even risky-er!"

Imagine the money you place in endowment, fix deposit or popular interest saving account (I m not saying it is not good, because I am also using that account), there is little or no chance the return (interest percentage) will raise (significantly). 

Comparing to buying into a company, company will grow. As the company grows bigger and bigger, the share will automatically increase as EPS/Book Value increases too. In addition, as a shareholders, we are entitled to dividend, so if the company grows bigger, likelihood the dividend payout will also increase too.

For this case, we are not only earning from capital appreciation but also dividend collection.

I always believe that everyone has the same proability of becoming rich and wealthy. The only factor that differentiate why some people can achieve their goals faster than another is "how badly you want it to be done."

The Key pointer I personally think is to start early and young.
Time is something that is gone and will never come back regardless how rich you are. Well, you can't buy time with money. A minute past is a minute gone.

Plant a seed today,
let it grows,
certain things in life, there is no way to rush but to wait...
only at the expense if you have the time.

Wish you great success, 
ERIC KHOO

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