The Market Accumulation Portfolio - MAP 2012

Yes we are back again after we had acquired a good track record for the MRP (Market Recovery Portfolio) in late 2008. The MRP adopted a 10-month Dollar Cost Averaging (DCA) strategy to ride on the recovery market trend.

Now, for similar approach we have the Market Accumulation Portfolio (MAP) to help you to accumulate your wealth based on the current market condition.

Refer below for more information. (For iPad user, you might want to use Chrome)




Alternatively, contact us for more information.

As much as we would like to achieve extraordinary performance, I would like to bring to your attention that past performance of the portfolio mentioned might not be an indication for future performance. Moreover, the portfolio selected is based upon your risk profile, your attained age, your current financial situation, your ability and willingness to accept calculated risk. Risk is something you need to understand and to consider before committed to any investment program. Please take note that by doing nothing itself is also considered taking one form of risk. Thus it is important to know how risk and return interact and to understand what type of investments might suit your risk appetites. So contact us to find out which invested assets could help you to achieve your financial goals!


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Smart Kids need Smart Parents

Tertiary Education Funding on Prezi

Yes, indeed, smart kids need smart parents.

University Funding Analysis

The competition for places at institutions of higher learning has become more intense over the last decade. The costs have also gone up. Increasingly, the answer for many parents is to start saving and investing early so that they will be able to get the lump sum needed to finance their children's education. The benefits are clear. Saving early and often will help you to put aside less every month. Moreover by investing early, you will see your investments outpace inflation and increasing education costs, as illustrated above.

Saving part of our current income seems to be the only way to provide the education fund. The only problem is that we must have enough time to earn. Should our time run out earlier than expected, we can only count on whatever that's accumulated, plus some interests. Thankfully, we could use a "special account" that guantee the desired funds even if your time runs outs. All you need to do is to transfer your regular savings into our account, and see it grow.

Some useful references

Singapore to get its 5th and 6th universities

http://www.straitstimes.com/breaking-news/singapore/story/singapore-get-its-5th-and-6th-universities-20120826

"The schools were chosen because they work closely with industry and focus on applied degrees" - Prime Minister Lee Hsien Loong announced at the National Day Rally on Sunday night that both the Singapore Institute of Technology (SIT) and UniSIM would become universities. SIT will expand places and begin awarding degrees while UniSIM will add full-time programmes.

. . . . . . . . . . . . . . . . . .

Room for more graduates

"By 2020, as much as 50 per cent of each cohort will enter university."

http://www.todayonline.com/Hotnews/EDC120829-0000061/Room-for-more-graduates

Helpful Financial Tools in our Resource Center

7CAPITAL Resource Center provides some useful spreadsheets to help you in understanding your personal finance. This mind map tool provide direction and could lead you to spreadsheets that might be applicable to your situation. Side by side, explanation notes & illustrations, which is linked within my blog, helps to explain certain financial planning concepts. Hence, this would lead you to understand your current personal financial situation so that you could arrive your ultimate financial destination "safe & sound'. The available tools would determine how you are going to achieve your financial goal. BTW, going through the financial planning process required your conscious discipline, as my coach once told me, "Hock Beng, we can't build muscles by lifting feathers."

Do come back for more as I would be updating this mind map as whenever new stuffs (tools, applications, illustrations, templates) are ready and available for your references.

I hope that this reference would truly be a helpful resource for your personal financial well-being.


Create your own mind maps at MindMeister

7capital - Capital Accumulation (part 2)

Save Smarter, Not Harder...

Accessing RISK/Return or RETURN/Risk...first?

It is important to know how risk and return interact and to understand what type of investments might suit your risk appetites.

So what is Risk & Investment Risk?

Risk can be thought of as the uncertainty something happening. In investing, it could be view as the "calculated" chance that money can be lost or made on any investment. It is often be view as variability in the returns of an investment. It is how much "below and above" the average return or the return expected by an investor. As such we use the VOLATILITY as a common yardstick to measure the speed and magnitude of price changes in an investment over a period of time. (In Physics, it's known as Vector quantity). If the movement is rapid over a short period of time, it has high volatility, whereas for low volatility, the price movement is very mild, like bank deposits.

Although risks pose a threat, they also pose an Opportunity and investors need to know the best way of mitigating risk so that they can also benefit from the potential returns. But in actual fact, the general consumers not only pre-occupied with their lives, they also might not have sufficient and essential information on the investments they are embarking on. So it would be wise to engage an investment-based certified financial planner. Let's us not be penny-wise and pound-foolish.

How about returns?

Often being said, low risk, low returns; high risk, high return. Likewise, the same is true for loss. But I always take the stand as low risk products will certainly and definitely gives low return, but high risk might not give you high return. It's the "managed" high risk approach that would gave the investors the "expected" high returns. This "return expectations" of an investors would depend on a few factors, such as the investors' risk appetite, investment type preferences, the committed investment amount and whether the products are suitable for the investors and other considerations that the investors might feel great importance and concern. These personal concerns that investors might have, need to be addressed first before they commit.

In reality, returns might not need to be managed. More often than not, investors are generally delighted when their investment are in the "black" and on the rise. Personally, the investors should use a yardstick to measure their expected performance on a certain time frame. In this way, the return objectives would be met. Therefore, an investor's financial goals and attitude to risk will be a guide to what types of investment will best suit them. We are aware that different asset classes have associated risk/return profiles.

In conclusion, although Risk and Return are at different side of the coin, however, they are like an identical twins and have to go hand in hand. They are inseparable because they are two different faces of the same coin.

Systematic & Disciplined Investing that pays

It is possible to improve investment portfolio by timing the market, but can it always be done correctly? Any unsuccessful attempts to time the market will seriously hurt the returns on investment.

The solution is to invest a fixed sum of money on a regular basis. Such discipline investment approach is Dollar Cost Averaging.

DCA is setting aside a percentage, say 15% percent, of your monthly income in a unit trust. Regardless of market sentiment, this strategy enable a specific dollar to be invested on a consistent manner.  During bad times, more unit units are acquired and in good times, less units. In this way, the average price per unit is being driven downwards.

DCA does not guarantee a profit, but it can help to smooth out the market's ups ad downs (volatility) and reduce the risk of loss. It foster discipline in investing regularly, and take full advantage when the market recovers.

Above all, DCA helps to remove the emotional factor from your investment programme, allowing you to focus on your long term investment goal and avoid the pitfalls of buying high and selling low in the market.