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PayPal is Now Officially in Malaysia
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KUALA LUMPUR, Jan 16 (Bernama) -- Retail mutual funds registered for sale
in Malaysia produced a modest average loss of 4.15 percent in 2005,
according to an analysis conducted by Standard & Poor's Fund Services,
which provides fund research and analysis globally.
Based on Standard & Poor's data, the best-performing category in 2005 was
Fixed Income with the average return at 4.50 percent.
This was followed by Money Market funds, with the average return at 2.39
percent, it said in a statement.
Asset Allocation, which contains funds with investments in equity, fixed
income, and money market securities, delivered an average return at
negative 3.06 percent, it said.
The average return on funds in the equity category was negative 7.84
percent, it added.
The Fixed Income Islamic sector was clearly the best performer in 2005
with an average return of 5.44 percent, it said.
Following close behind was Fixed Income MYR, which returned 5.03 percent.
The performance of the Asset Allocation Malaysia Defensive Sector was
respectable as well with an average return of 4.43 percent.
Under-performing sectors over 2005 included State Funds Malaysia, with
negative 19.56 percent return and Smaller Companies Malaysia with
negative 17.74 percent, it said.
Despite rising interest rates and oil prices, most global equity markets
and stocks in most sectors saw gains in 2005, it said.
However, Malaysia's Kuala Lumpur Composite Index (KLCI) went against the
grain to close 0.8 percent lower in 2005, spooked by weaker corporate
earnings, it said.
Standard & Poor's has a market weight rating on Malaysia.
"We project moderate growth in equity value and have a KLCI target of 980
for 2006. Inflation fears are likely to lead investors to companies with
proven track records. We also expect dividend paying issues to continue
to find favour," said Lorraine Tan, Vice President at Standard & Poor's
Equity Research.
Standard & Poor's also forecast a 6.1 percent 2006 GDP growth for the
Asia-Pacific region, driven by economic resilience in China and the U.S.
Furthermore, the S&P Asia 50 index trades at attractive valuations
compared with global peers, it reasoned.
"We therefore believe the Asia-Pacific region offers growth at a
reasonable price, and have a positive outlook for Asia-Pacific equities
in 2006," said Tan.
People are very defensive, when it comes to losing money in the stock market/investments, to the extend where some become "eccentric" about it. They often cite how BAD the market is performing and how people are "burnt" by it.
However, these are the very same people who usually never have any equity/stocks in their investment portfolio. Heeding advices from such sources is the same as asking directions from the blindman.
As I've promised, I shall reveal some of the methods that can help you minimize your risk, but I don't guarantee you will become a millionaire overnight.
Stay tune, Shadowfox!