Recently one of my good friends approached me about this investment company which offer 100% return in a year. I told him this will be too good to be true. As I googled, indeed there are people commented that it was a scam and I told him to be careful. But he still seem unconvinced and send me more stuff about the company.
Well, there are already so many this kind of scam investment cases in Malaysia. As on 29th April 2017, Bukit Aman Commercial Crime Investigation Department said the number of cases of investment scams in Malaysia have grown to an “alarming” RM379.1 million lost nationwide from 1,883 scams from 2015 until April 2017. Here are some BIG stories:
- Malaysian involved in RM19 billion forex scam in China – 7th July 2017
- JJPTR which offer 20% return in a month – They say investors in Penang gave a total of RM240,000 to the money games operator but got back only RM30,000 – 3rd July 2017
- Another investment company offer to 40% return per month – But at the end a total of 107 people have claimed to have lost RM6 million – 23rd April 2017
- VenusFX forex scheme syndicate that swindled RM80mil from more than 23,000 victims – 29th March 2017
Please leave your comment to let me know more stories so that more people will be aware.
Now, let’s compare to the return from unit trust fund from various popular unit trust fund companies in Malaysia.
Note: What is a unit trust fund? A Unit Trust Fund consists of a pool of funds collected from a group of investors with similar objectives. This collective investment fund is managed full time by professional fund managers. An investment portfolio typically includes equities, bonds and assets.
Top 10 in 10 years return
|No.||Fund Name||10 Yr Annualised %|
|2||Eastspring Investments Small-cap||14.72|
|3||Affin Hwang Select Asia (Ex Japan) Quantum||14.39|
|5||RHB Emerging Opportunity Unit Trust||11.12|
|4||KAF Vision (formerly known as Alliance Vision)||11.61|
|8||AMB Ethical Trust||10.72|
|7||Kenanga Syariah Growth||10.95|
|6||AMB Dividen Trust||11.01|
|9||Eastspring Investments Dana al-Ilham||10.58|
|10||RHB Smart Balanced||10.42|
|Source: FSM NAV Date: 28/1/2017|
Top 10 in 5 years return
|TOP 10 IN 5 YEARS RETURN – UNIT TRUST FUNDS – JAN 2017|
|No.||Fund Name||5 Yr Annualised %|
|1||Eastspring Investments Small-cap||21.67|
|2||CIMB-Principal Asia Pacific Dynamic Income||16.61|
|3||CIMB-Principal Global Titan||16.40|
|4||TA Global Technology||16.39|
|5||Manulife Investment U.S. Equity||16.17|
|6||Eastspring Investments MY Focus||16.10|
|7||Affin Hwang Select Asia (Ex Japan) Quantum||15.78|
|9||AmSchroder European Equity Alpha||15.36|
|10||RHB Small Cap Opportunity Unit Trust||14.76|
|Source: FSM NAV Date: 28/1/2017|
Even with so many professional fund managers, the best return in around 20% per year. And that is based on the average of 5 years or 10 years of investment.
So you should be skeptical when you hear an investment company which offer you anything more than 20% return per year. Example 100% return per year or 20% return per month. More warning sign especially they told you that the return is ‘guaranteed’. Think about it for a minute. If they guaranteed you 100% return per year, all the banks would invest in it. Just imagine, bank just invest 100 million become 200 million following year. Banks only give a Guaranteed of 3-4% per year for fixed deposit interest. But do you think bank will do that? Surely no. Question is why.