Beware of Investment Scam

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:

List Of Unauthorised Websites / Investment Products / Companies / Individuals.

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 Name10 Yr Annualised %
1Kenanga Growth15.09
2Eastspring Investments Small-cap14.72
3Affin Hwang Select Asia (Ex Japan) Quantum14.39
5RHB Emerging Opportunity Unit Trust11.12
4KAF Vision (formerly known as Alliance Vision)11.61
8AMB Ethical Trust10.72
7Kenanga Syariah Growth10.95
6AMB Dividen Trust11.01
9Eastspring Investments Dana al-Ilham10.58
10RHB Smart Balanced10.42
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 Name5 Yr Annualised %
1Eastspring Investments Small-cap21.67
2CIMB-Principal Asia Pacific Dynamic Income16.61
3CIMB-Principal Global Titan16.40
4TA Global Technology16.39
5Manulife Investment U.S. Equity16.17
6Eastspring Investments MY Focus16.10
7Affin Hwang Select Asia (Ex Japan) Quantum15.78
8KAF Vision15.66
9AmSchroder European Equity Alpha15.36
10RHB Small Cap Opportunity Unit Trust14.76
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.

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