My 911

September 11, 2006 at 11:15 p09 (Red & White Matters)

I put down $10,000 into a fund called “Dynamic Growth Protective Capital Fund” a few days before 911 and I will earn my $29 profit when my fund expires at the end of this month. But my opportunity cost is a cumulative 20% in interest on that principal, if I had left it in my Central Provident Fund (CPF). On hindsight, I am still happy because I probably had assisted this one particular fund manager to get that brand new Lexus 300. We can’t win all the time, right?

I still cannot fathom how the fund can rake in so little consider that it closed a few days after 911 and there was a boom for the last twelve months in the stock market. I asked the agent that sold me the fund on the reason for the poor performance and he said the fund manager put the money in the bond market to protect my capital. Bond market, isn’t this like fixed deposit with the additional risk of bond default? Niamah, only if I had known better!

Well, this is the one and only time I let other manage my fund and I am none the wiser for it. I learned 2 lessons here. If you want your capital to be protected, don’t invest in fund. Put it directly into a plain vanilla fixed deposit. At least you will save on management fee that goes into helping someone acquires that brand new Lexus. If you still wanna dabble in stocks, try blue chips and in companies that you know… telecom, properties, bank, shipyards, etc.

911 will forever etch in my memory for the terrible disaster that befallen World Trade Centre in New York and its occupants. On this day, I would like to count my blessing. My loss compares to those victims and their families of World Trade Centre incident in 11 September 2001 is pale in insignificance.

May the souls of those perished in 911 rest in peace…

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17 Comments

  1. mistipurple said,

    rest in peace to the victims of 911, and to their loved ones, may they have continued courage to live on.

    4f: my thoughts are with them too….

    funds ah, ah ya, the fund managers are the ones who earn all the time. we lose they also earn.
    last time, the UOB i think global capital fund did very well. something like 20% growth i think in 2 years. i left after only for one year because no choice lah, here on dotland, everything need hard cash.

    4f: this give me an idea for a post… maybe we can write about the time we get a free lunch in lil dot!!

  2. LM said,

    May we offer a prayer for peace.

    Today as we remember 911, it is so unreal.

    But know that these are the signs of end days. 4f: dont think so!

    So we live our lifes to the fullest.

    4f: i am with you here….

  3. fantastflier said,

    better to invest in property market here, sure get better than 20% return…

    4f: aiseh… and can have chipmunks and squirrels as neighbour. from your pic calgary looks so tempting… can consider when i start to measure my money in tons… LOL

  4. LM said,

    And here are my comments on investments.

    Its the relationship manager who gets the lexus. Bonds are supposedly safer than unit trusts. But the initial investment in bonds will be quite large.

    There are some investments on unit trusts that supposedly protect your invested capital.

    And, $29 returns.. wahahaha! not even enough to pay taxi ride to and fro the bank!

    4f: tenkiu for the advice. $29 enuf to pay parking since i drive. remind me to buy you kopi when i see you in lil dot… 🙂

  5. Leonard said,

    looks like me and ur “investment” is different!!

    may all 911 victims rest in peace, and those cowards won’t strike again!!

    4f: wat investment?

  6. Mickell said,

    Fixed deposit interest rates are pathetic. But for people who can’t take risks, it’s the best place to park their money. For people like you with tons of cash to spare, the stock market which behaves like a roller-coaster ride, is THE place for you and your money 🙂 No risk or venture, no gain 😀 Investments require us to look at the big, overall picture in terms of at least 5 to 10 years down the road. Long-term investments should not be confused with short-term gains from speculations :p Argh. I guess you already know all these stuff 🙂

    4f: you look me very up… like your wish, i really hope i have so much cash i have to count them by weight. the stock market is dynamic and i am still learning. no harm to park some $$ in the stock market for the long term.

  7. velverse said,

    yes, I wish that all the 911 victims can rest in peace but I still felt sad for their family members. Sigh…

    4f: i am with you here…. and my wishes also go out to those lebanese who lost their home & life in the M-East war that just concluded last month.

  8. may said,

    bless those victims and their families. a day that changed the skyline of NY and the lives of many forever.

    4f: i am curious what driven these people to commit such act? food for thought indeed…

  9. Cocka Doodle said,

    Seefei, you want good returns ah?
    I can connect you to some Singapore tai yee longs ventures.
    Very good returns…want? They also ‘manage’ your investment from a pooled source of funds. Risk are high also if the borrowers default and abscond….but usually they won’t dare.

    4f: when you next visit, please intro this tai kor to me hor! since you are back in JB when are you coming over for another round of happy hour?

  10. nyonyapenang said,

    still got $29 profit. lucky you! i am still on ‘paper loss’. real stupiak.

    4f: i guess everyone got at least one similar story to tell. Learned the lesson and move on… Since i got $29 profit, remind me to buy you a dinner when you drop by lil dot.

  11. ricket said,

    I placed the same amount into the local popular bank, into a “Dynamic-account-something-like-that” some kind of investment fund. NOw value only 80% of investment if I were to take out the capital.

    4f: hahaha we are in the same boat…. sponsoring others’ luxury life style. The fund i was in smelled of rat from day one, it just that i didnt see it. How can a fund be dynamic and yet preserve my capital? The return was so poor cos all the $$ was locked up in bond and they couldnt switch when the market turned for the better. My personal stock portfolio actually did better over the same period of time.

  12. spinnee said,

    Technically, the higher the risk, the higher the returns are expected.

    Then again, there’s not only funds you can invest in. If you are bold enough, try deriatives. 😉

    4f: derivative is the way to go, if quick gain you are after. me a bit sedate, dabble more in stock market.

  13. LM said,

    911 footages

    4f: let me see….

  14. zara's mama said,

    next time let wifey manage your funds.. that way, it’ll grow more.

    4f: that was pre-wifey time. now i am doing much better. thank you for the advice!!

  15. Simple American said,

    I would be steamed. You really need to study the manager as well as the funds now adays. I can never pick the right stock so I found a good financial manager.

    4f: hei! we are on the opposite sides of the fence. maybe the cost of fund is so much lower in US than in Asia. i bought this one particular fund from my insurance agent and i am sure some of the $$ go the insurance co for being the middleman. with the website & e-tool from financial company managing your own portfolio is not that difficulty. should give it a try!!

  16. me said,

    911 you oso can link to your own financial status ah? keng! $29 out of $10k for five years. that’s like…what? 0.058%? ‘

    4f: well, the fund & 911 happened around the same time and the results came back in 5 years to haunt me!

     don’t know about bolehland, but lots of funds here help big players carry stocks, hence they are always stuck with capital-losing shares.

    4f: u mean choy sun yeh (god of fortune) to the big boys or power to be? thats interesting…

    bonds aren’t that bad if you go in at the correct time, ie. when the cost is cheap but bond fund….that’s a different story. anything ‘fund’ is a sucker.

    4f: bond fund is a sure loser cos when there is a default or a panic redemption in the actual bond, the fund is roasted.

    *runs away before anybody in the capital market comes after me*

    4f: no need to run cos what you have just said is common knowledge. in fact if you read david lynch, he said notwithstanding the lack of knowledge, retail investors should do better cos their hands are not tied by funds’ theme and size of trades. With the abundance of knowledge and research material over the internet, the playing field should be more than level for the small timers.

     Actually a lot of my buy decisions are based on newspaper and research reports. It will works for you provided the market is rational and not “overly” controlled by the big boys *wink wink*

  17. Robin said,

    should have put it into regional china fund..

    it doubled

    4f: u r right. i missed that!

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