 |
This should reinforce the fact as to why stocks generally manage to attract many
investors and are viewed as more "glamorous" compared to bonds - they effectively
help to build ones wealth over time and most importantly, help you stay ahead of
inflation which ultimately shrinks the value of your money. Nevertheless, you should
not forget the benefits of diversification. Concentrating too much on stocks can
be detrimental to your money as well.
Sophisticated investors look for a variety of stocks - small and mid capitalization
stocks, blue chips and foreign stocks to be included in their portfolios. They always
look for long-term capital growth.
Like in most other financial markets, stocks are a popular form of investing among
the Malaysian investors. Stocks here are highly favored as a medium mainly to make
fast money. The local stockmarket is largely dominated by retail investors.
The local stockmarket resembles a corrupt casino flooded with market punters based
on rumors. The second board in particular exhibits the wild swings typical of any
growing emerging market.
Unlike other developed markets where investors invest in stocks through professionally-managed
mutual funds, local investors prefer to invest on their own hoping to seek quick
profitable investment outcomes but the true fact is that a large number of them end
up losing more.
Individuals who wish to invest in stocks to reap better gains but want to avoid the
unnecessary risk should consider unit trust funds which invest in stocks. By investing
in unit trust funds, you no longer have to worry about what stocks to buy and sell
as you will have full-time professionals to look after your investments.
By investing in those funds, you will more likely to see your "stocks"
grow over the long-term. Take advantage of most unit trust funds with low prices
now.
There are many equity or growth funds in the market that invest predominantly in
stocks in searching for capital appreciation. Normandy's definition of growth funds
are those where half of the total returns achieved is in the form of capital appreciation.
Table 3 summarizes the performance for all the Malaysian growth funds in the first
six months of 1997. Performance is measured using the bid (buying) price and all
figures shown include allowance for bonus issues and gross dividends. The KLSE is
used as a performance benchmark.
Investors are advised to consider the real entry cost (compare the offer to the NAV)
and not look solely at the performance figures. To ensure fairness, performance analysis
for 1996 only include those Funds that operated for the whole year.
Table 3. Half-Yearly Performance (01/01/97-01/07/97)
|
Malaysian Growth Funds |
Half-year ë97 (%)
|
1996 (%)
|
| 1. |
KL Balanced |
-3.85
|
13.19
|
| 2. |
BHLB Pacific Savings |
-4.91
|
18.59
|
| 3. |
KL Aggressive Growth |
-4.95
|
13.19
|
| 4. |
Utama-SSSB Premier |
-5.15
|
-
|
| 5. |
TA Balanced |
-5.71
|
-
|
| 6. |
KL Industry |
-5.71
|
19.12
|
| 7. |
BHLB Pacific High |
-6.22
|
15.50
|
| 8. |
SBB Premium Capital |
-7.00
|
27.40
|
| 9. |
Arab-Malaysian Cumulative Growth |
-7.87
|
-
|
| 10. |
AUT:Malaysia Progress |
-7.90
|
50.64
|
| 11. |
BHLB Pacific Eco Growth |
-8.51
|
28.41
|
| 12. |
Multi-Purpose First |
-8.91
|
16.91
|
| 13. |
Pacific Premier |
-9.19
|
22.57
|
| 14. |
HLB Growth |
-10.68
|
23.35
|
| 15. |
OSK-UOB Equity Trust |
-13.00
|
-
|
| 16. |
AUT: Malaysia Equity |
-13.51
|
37.70
|
| 17. |
AUT: Malaysia Berjaya |
-15.14
|
32.84
|
| 18. |
ASM TKMB Seventh (Acc.) |
-16.12
|
24.54
|
|
KLCI
|
-12.98
|
24.40
|
Note: Ranking according to half-yearly 1997 performance
Source: Normandy Research
|
