23-06-2008:
by Ang Kok Heng
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Everyone who invests is also an investment manager himself. Although professional investment managers are employed to handle investment decisions for most of the investment products, in many areas an investor himself has to make the crucial decisions. Some of these decisions include when to invest, which one is better, how much to invest, when to take profit (how about losses), when to switch, when to add, etc. An investor himself will have to make many decisions even though financial consultants, investment advisers, financial planners and fund managers may provide advice from time to time. The final decision of an investor will very much be influenced by his risk appetite, expectation, cash flow needs, investment history, investment experience, etc Simplest investment needs decision Even the simplest investment, ie putting your excess money in fixed deposits (FD), requires a decision.
The questions that come to mind immediately are which banks provide higher interest rates, how long to place (one month, three months, 12 months etc), how to allocate between FD which provides a higher interest rate and the smaller interest-bearing savings account. Fortunately, most banks provide competitive rates and there is less need for extensive comparison. Furthermore, the interest differential between different maturity durations is small and as such, most people opt for shorter tenure of one-month maturity for FD. In view of the current low interest rates offered by banks, it may not be necessary to crack the brain to pick and choose, unless the amount is substantial. Complexity arises when some banks develop innovative products to lure customers, especially the high net worth individuals. Some of these are high interest rate foreign currency deposits, interest upfront deposits, etc.
Posted by khg9973 
Posted by khg9973 
Posted by khg9973 