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…