The Importance of Saving

Although many people dream about winning the lottery, it's highly unlikely you ever will. But there is a tried-and-true way to reach your goals. It takes discipline and time, but unlike the lottery, it is practically guaranteed to help make your dreams come true. It's a steady plan of saving and investing.

Saving means setting aside money on a regular basis, preferably from every paycheck. But to save, you must spend less than you earn. Reducing your spending, as opposed to earning more money, is the real key to gaining control of your finances. Unfortunately, many people spend everything they earn, or even live beyond their means.

By saving now, you will build a reserve for the future. Eventually, you may use this reserve to:

• Pay for large future expenses, such as a down payment on a home or your retirement.
• Prepare for emergencies - medical or other.
• Improve your financial standing, such as paying off outstanding bills and improving your credit rating.
• Invest in yourself, through education, job training or tools for your trade or business.

Start saving now before it is too late, you will never know what is going to happen tomorrow.

Make your money work harder for you

Invest in Unit Trusts

What is Unit Trust?

A unit trust is a professionally managed collective investment scheme which pools your money with the money of other investors. Specialist investment managers then invest the money on investors' behalf towards a specific goal in accordance with the investment objective of a particular fund.

Your small amount of money, be it Rm1,000 or Rm10,000 assumes the buying power of millions of ringgit. This buying power means you enjoy the benefits of a large and diverse portfolio.

The Benefits of Investing in Unit Trust

The combined resources of individual unitholders in a unit trust enable then to have access to an array of benefits that would otherwise have been impossible.

1. Professional Fund Management
The advantage of a unit trust scheme is that you have financial experts of fund managers looking after your investment. The fund managers take care of all the hassle of identifying the best possible equities and/or fixed income securities while you sit back and relax.

2. Diversification
Your investment risks are considerably reduced because the fund manager helps you buy into a broad spread of equities and/or fixed income securities, and a diverse portfolio automatically reduces the risk, as "all the eggs are not put in one basket."

3. Opporturnity for Capital Gain
Returns from unit trust investments come in the form of investment income and/or capital growth. Depending on your individual financial goals, you can choose from a variety of funds, one that is best suited for you.

4. Liquidity
Unit trust also give you the flexibility of being able to convert your units back into cash within 10 days upon receiving your redemption instructions.

Hope the information benefits you.