DO YOU EVEN INVEST?

Investment forum with CFA and MBA professionals.

Bursa Malaysia

How to start investing in Malaysia Stock Market? Do visit this page to know how.

Everything you must know about 6% of GST

Goods and Services Tax (GST) is here in Malaysia on 1st April 2015. Still don't know anything about GST? We'll tell you everything here.

The 15 Characteristics of People that Succeed in Sales




            Have you ever been involved in sales? If you are, you will know that it’s not for the faint of hearts. There is a saying that goes: salesman are born, but not taught. Undoubtedly, some may have been gifted with the characteristics of a sales person. However, these characteristics would be learn and you would be just as successful as them.

1.Conscientiousness

It is said that this trait is found in people who take great pride in their work, are organized and efficient. But, if you are not organized and efficient, you can learn to be. Conscientious also means you keep going in your job, no matter what.

2. Respectful
Founder of Searchmetrics, Marcus Tober states that “our top sales reps respect our customers' time above all else. You have to make sure that your customers and potential customers are treated like gold." Part of doing this is making sure that they have time and you schedule time for work. People want the bottom line. Old tactics don't work. People are busy, respect their time above all.

3. Initiative
Sales reps don’t wait for orders. They’re go-getters and take matters into their own hands. Being disciplined like this helps salesmen to stay on track. If something has to be sold, there is a way to do it. The salesman will do what it takes to sell the product. Learn to like the product better, compliment where appropriate (even if they hate it at first), learn how to mirror to connect, then actually care about the connection.

4. They listen
American Express’ OPEN forum says that the best sales people ask their clients and customers “why they want something done.” When you listen to your clients/customers, you find out what they want and need, and how to make that happen. If you don't know exactly how to make happen what your client has asked for, be absolutely sure that there is a way. You just haven't found it, yet.

5. Persistent
You have to have thick-skin to be a salesperson. Why? Because you’re going to become very familiar with the word “no.” You have to be confident and persistent if you want to remain involved with sales. The public is done with the hard sell. However, the average person is not done with extreme kindness, even if you are irritating. "Hello, yes, I'm calling you back because I know you didn't mean to hang up on me."

6. Coachable
According to Mark Roberge from HubSpot, experience isn’t nearly as important as coachability for predicting successful reps. Being energetic, willing to learn and having the ability to adapt are all a part of being “coachable.” Coachable means an early adopter of the suggestion. If you are asked to do things in a certain way, do it that way, even if it's something you have always done a different way. Brainstorm in your one-on-one with you coach.

7. Positive
Who would you rather make a purchase from? The upbeat go-getter or the depressed downer? Having a positive attitude and being cheerful makes it easier to approach customers and keep their attention until after you’ve made the sale. This positive attitude exudes from a person. If you've got a really bad scene going on at home, stuff it! I mean, stuff it! Learn to compartmentalize the aspects of your life. Your work life is positive. Try some psychology, smile, jump up and down, breathe, do what you have to to be positive.
8. Resourceful
The true salesmen is able to shift gears if a sale isn’t going the way that they envisioned. Instead of just taking “no” as an answer, they will attempt a different approach by using their creativity and imagination. Remember though, you have to make it snappy and switch quickly. Learn to read faces. If your approach has not worked within two minutes, change. Have your twists and turns ready. If you have to practice them at home so that you are natural.

9. Passionate
A top-notch salesperson actually enjoys their job. If you hate it, change or get out. Most importantly, the salesman will be passionate about the products or services that they’re selling. If they’re on board with a brand’ message, they can excitedly share that vision with prospective clients and customers. Happy, positive, love it, passionate.

10. Ask questions
Searcy states that there is data that has discovered “that the higher-performing sales representatives ask more questions--often more than twice as many.” But, these salespeople don't ask questions that focus solely on data. They want to know what the implications are. I have personally found that the questions I ask are not about the product. The client got what you are selling your first time around. Don't drone on. This client has something to say. What is it? They have a Zen garden at home? You learn to love the Zen garden quickly and ask more.

11. Independent
Since most salespeople work on a commission, they have to be independent and will take the correct measures in making this a reality. The boss doesn't have to be there to make sure the work gets done. The salesman is a self-motivator. The independent salesperson can build themselves up to do more. They can pat themselves on the back and appreciate their own greatness. Most independent salespeople do not have to be thanked for each call or sales, they know how to say, "Good job, me!"

12. Time managers
Here’s a simple equation: more selling time increase sales and compensation. The best salespeople manage their time effectively, such as finding the best routes from location to location, so that they have more opportunities and time to spend securing a sale. If one place or person takes too long, or longer than expected, the time manager makes up for it somewhere else.

13. Overachieve
Author and sales expert Grant Cardone informed OPEN FORUM that salespeople should "over commit and over-deliver." You have to go above and beyond. True salespeople don’t know when to stop and typically are pushing for more. More people, more clients, more work, more money... just more. The quality more.

14. Personable
A great salesperson has no problem getting along with others. And, most importantly, they enjoy meeting new people and realize the power of networking. It’s not surprising to see salespeople involved with so many local events and organizations. Most sales people love people, and it shows. They are energized by people. They go home and can hardly sleep after an event.

15. Alertness
Salespeople are always prepared. They have to be ready for any situation that they’re thrown into and know how to successfully break free. The salesperson is aware of herself and her body. If she is not alert, she has felt it coming on and taken care of it. Caffeine up, run up and down the block or eat less, they do whatever it takes. Alertness is key to so many of the principles of being a great salesperson.

Source:Entrepreneur

Japan Hits Surprise Recession .

Japan's Younger Generations Are At Risk.

Japan Prime Minister Shinzo Abe has raised Sale Tax which is some what of a worrisome to the youths of Japan. A country of manufacturing titan - Toyota , Honda ,Suzuki ; Pop culture icons such as Hello Kitty , Asimo robot had slip into recession.

      Abe as the leader of Japan has been undergoing a tremendous pressure to reduce the a quadrillon debt owned by the country, which had also hiked tax this April is going for another implementation of increasing the taxes again . The uncontrollable and unstoppable unprecedented stimulus by the government is not a good sight for Japan's younger generations.


      Due to the late 20 century Japan hit its peak in economy and then felt of the economy bubble burst years then , is suffering from the policies implemented then. Health care, Child care, elder care, social welfare are of those policies but since recession hits Japan until now, the country has spent a large sum of money on this area.
     
      Adults of Japan are not satisfied with the recession and is eager that is should be solved immediately. Furthermore, the low birth rates and high life expectancy in japan makes the policies implied before even a bigger burden for the future youths. Abe has pumped ten trillion yen into japan's economy to end the stagnation stage and revamp work for Japan to work its way back to the competitiveness it used to be.

     The last two decades, Japanese companies are struggling to compete with rivals in China dismantled much of the lifetime employment system that was standard for most urban white collar and factory workers. Today,40% of Japanese workers with part time contracts have little job security and scant benefits. For young Japanese, permanent, career-track jobs are the exception.

      Abe also urges Japan's firms to raise pays and offer a broader range of opportunities to include woman in to the world 3rd largest economy contribution. The raise in tax may be partial for the poorer society , however this is the only way for japan to recover said by Koichi Hamada, a former economic adviser to Abe.



(Source: Yahoo Finance)

Field Trip to Bursa Malaysia and Wongamania Financial Card Game Workshop



Dear fellow UNMC students,

We have two exciting events coming up which we believe will tremendously benefit you in your financial intelligence and knowledge. It is the field trip to Bursa Malaysia and the Wongamania Financial Card Game Workshop. Never heard of Bursa Malaysia and Wongamania? Do read on!!


What is Bursa Malaysia? Well, to put it simply, Bursa Malaysia is an exchange holding company which operates a fully integrated exchange service. Among the products offered include stocks, bonds, warrants, real estate investment trusts (REITs), derivatives and many others. By attending this event, you will be able to learn more about investments in a conducive and exciting environment while breakfast, lunch and transportation are all provided.


So what is WongaMania? Well, wonga is a British slang for money and hence Wongamania could stand for “Excited Money”. Excited yet? Well what is the objective of Wongamania then? Well, Wongamania is a fun to play, interactive table card game created as a financial education game that helps adults to understand more about economics and how various economics events will affect them and their investments. This programme is designed by Financial Youth Intelligence (Malaysia) and Capital Gains Group (Singapore).

This 30-60 min card game allows players to ride through the intricacies of an economic market cycle, trying to accumulate assets to retire and at the same time. You can choose to manipulate the economy and throw your enemies' plans into disarray, or work with other players to help each other achieve financial independence.  Learn how economic scenarios such as property bubble, debt crisis or a stock market crash can affect your wealth and understand how to protect your wealth in the face of uncertainty. This fast paced game requires planning and strategy in order to outwit and outthink your friends, in order to survive the trials and tribulations that the financial markets will throw at you. The game is designed in such a way, that participants without any financial background can play and enjoy the game.


So who is the brilliant genius who created Wongamania then? Xeo is a veteran in the Singapore wealth management industry with more than 10 years of experience. He manages a team of consultants in one the largest Financial Advisory Firm in Singapore and specializes in investment advisory and asset management.

Xeo is also an avid public speaker since 2005 and has conducted more than one hundred sessions of talks, workshops and seminars. He has been invited by various institutions such as National University of Singapore, Nanyang Technology University, Singapore Management University, People’s Association, Universities’ alumni clubs, public libraries, investment conventions, community clubs, non-profit organizations and various private corporations. He has been appointed as one of the speakers in the Singapore’s national financial literacy program “Moneysense” and has been invited to do a series of financial talk show with Singapore’s Mediacorp Radio. Xeo is the founder of Capital Gains LLP, a financial game design and education company which has created popular financial games such as “Capital Gains” and “Rollin Gold” which are well-received around the region.

So are you excited to join our events yet?

You can register with us at our booth located at SA circle or register online through the form: https://docs.google.com/forms/d/1eR3QaYaZBO_p7a3L6sk8odT6_hnhQrcvVZjNZ-04pVc/viewform?usp=send_form


You will definitely enjoy yourselves and learn a lot on financial intelligence!!

Details for the date/time/price can be found in the included poster above :)

Different Types of Investment Vehicles

Definition:

Investment:
putting money into asset with the expectation of capital appreciation, dividends or interest earnings

Vehicle:      
 a thing used to express, embody, or fulfill something; instrument.

(I) Stocks:  

Parts of ownership of public listed companies; also known as shares. This is the favorite of high net worth individuals.

Advantages:
-can be started with small capital
-transparency and accessibility of relevant information
-chance to participate in accomplished businesses/ economies of scale
-almost unbeatable long term gains

Disadvantages:
-requires a certain level of expertise
-subject to market volatility
-poorly managed companies may go bust

Availability: 
Buy from stock exchange through investment banks or stock broking firms.


(II) Mutual funds:  

Individuals with MUTUAL investment objectives pool together their FUNDS to be managed by managers from banks or insurance companies.

Advantages:
-can be started with small capital
-managed by experienced investors
-diversifying risk by owning a variety of assets
-being able to hold assets available to only institutional investors, eg. bonds

Disadvantages:
-incurs higher costs for buying and selling, relative to stocks
-little space for customization, more susceptible to market volatility
-diversifying gains (not just the risks!)

Availability: 
Banks, insurance companies.


(III) Real estate:    

Land and/ or buildings built on it.

Advantages:
-consistent capital gains
-properties have strong demand and don’t get less popular over time

Disadvantages:
-high barriers of entry
-requires active management
-high financial commitment

Availability: 
Real estate agency, or sales gallery of properties developers.



Alternative investments:

-Equity derivatives                   eg. options
-Commodities                 eg. Crude Palm Oil
-Commodity derivatives eg. futures
-Precious metals             eg. gold, silver
-Foreign exchange          eg. USD/MYR, MYR/EUR





Research done by :
Dhivyamaaran Anparasan @ Maaran

Chong Zhi Ying @ Jeanne
Pham Phan Hoang Kim @ Kim
Tan Shen Tze
Terence Then

Too Good to be True - Identify Investments Scams Out There

Well, I think I can say for the most of us students, our budget/allowances has to be one of the most constraining things of our university life. This leaves some of us tempted to anything that can help us gain a quick buck – easy targets for fraudsters with ‘Get Rich Quick’ schemes which are in fact, scams.
Scam: a fraud.
Fraud: The intentional act of deception involving transactions for purpose of personal gain.

Get Rich Quick Schemes

                Get Rich Quick Schemes offers high or unrealistic rates of return for a small amount of investment while at the same time promising that the investment is ‘easy and risk-free’. It is a type of fraud. This might sound familiar to most of us who get bombarded by hyped up emails about how we can earn over 20k in a month just by staying home etc. There are 2 types of Get Rich Quick Schemes that everybody should be cautious about: Ponzi and Pyramid Schemes.

Ponzi Schemes

                Originally created by Charles Ponzi (known as the King of Get Rich Quick), this scheme is an investment fraud that involves the payment of purported returns to existing investing investors from funds collected from new investors. Ponzi schemes still exist today in many forms and it is highly advisable to avoid them.
E.g. Investor A invests in Scheme 123 that tells him that there is a guaranteed return of 50%. Investor B invests in Scheme 123. With the money collected from Investor B, it is used to pay Investor A as the ‘returns’.

Pyramid Schemes

                In a pyramid scheme, participants only make money by recruiting more members. There are two basic types of pyramid schemes: Naked and Product-based.

Naked Pyramid Scheme: No product is sold
Product-based Pyramid Scheme: same concept disguised as a legitimate direct sales opportunity

E.g. Person H recruits 10 people to participate in a ‘’no fail investment”. Each of them has to pay RM500 to the recruiter. The new recruits are told to recruit 10 other people each and to do the same. Each recruit will make a profit RM4500 from the initial RM500 investment.



The fundamental issue

                The main issue in both schemes is that eventually it will be impossible to recruit anymore members or investors. Even if it was possible to recruit every single person in the world, eventually both schemes will still fail.

Based on Figure 1, we can easily see how a pyramid scheme will fall very quickly if each recruiter recruits just 6 members each and the new members do the same. Nobody will be left to recruit.  This is also known as saturation of the market where there is too many sellers and no buyers.
Similar to a pyramid scheme, a Ponzi scheme will fail when the pool of new investors run out.



When Ponzi schemes turn bad
As Figure 2 illustrates, when the pool of new investors eventually run out, the scheme will begin to collapse and the investors will lose the most.  




When Pyramid Schemes turn bad
As Figure 3 illustrates, when the market becomes too saturated (too many seller no more buyers) or when there are nobody left to recruit, the scheme will start to fail. When this happens, there are two possibilities that might happen.
Either:
 1) The Company will disappear
2) The Pyramid will simply topple
With either situation, the people at the bottom will lose all their money that they have spent on this company.


 BUSTED – Get Rich Quick Schemes Uncovered

                Here are some of the famous Get Rich Quick Schemes and scammers that have been uncovered in the past:

-          Charles Ponzi – the King of Get Rich Quick
o   His scheme caused an estimated loss of $20 million and the closing of six banks.
-          Bernard Madoff
o   Used his credentials as a stockbroker, investment advisor, and former chairman of NASDAQ to gain clients’ trust.
o   When he was arrested recently by the FBI he admitted that “There is no innocent explanation”
o   Estimated Losses: $65 billion

-          Genneva Malaysia Sdn Bhd
o   Sued by 1,065 gold traders for breach of contract
o   Other illegal activities include:
§  Illegal deposit taking
§  Money laundering
§  Tax evasion and avoidance false description (misrepresentations)
§  Appointment of agents without license
o   Involves an estimate of: RM146 million in gold products and monies





Risks of participating in Get Rich Quick Schemes

                Now some of you might be asking yourselves with your new found knowledge: “I can go in then make a profit then I’ll exit the scheme, right?” Well, yes, you can. But here are some numbers to make that thought less appealing. 99.88 percent of participants of naked pyramid schemes never make any money. It's also a mathematical fact that 88 percent of participants in any pyramid scheme will be on the bottom level (Roos, 2008).
 Not only that, victims of these schemes will become a burden to themselves and family members. These people may also incur additional costs as they may have to employ lawyers to bring a civil suit against the fraudsters. 



Suspicious Get Rich Quick Schemes

Disclaimer: These are recent suspicious cases and not confirmed cases. They just fit descriptions of the schemes discussed.

QNET – direct-sales company.
          Have to pay a fee in order to join as a member.
          Pyramid Scheme that looks like an MLM company after packaging.
          People have to recruit more in order to get return from their investment.
          Members at the bottom line will eventually lose money.

HERBALIFE - direct-sales Company
          3.7 million “members” in ~ 90 countries
          MLM style compensation (earnings from sales and recruitment)
          The more Herbalife protein shakes that members you’ve signed up buy, the more money you make.
          You and your recruits need to buy several thousand dollars’ worth of shakes and supplements before these bonuses kick in.
          When company’s president was questioned on how much of it’s sales were made outside the company’s network, to non-members, he responded saying “We don’t track this number and do not believe it is relevant”



The Rules of the Game

                With all that said, there are a few rules to remember so that we do not fall for such schemes.

  • 1.       The Golden Rule – If it’s too good to be true, it probably is.
  • 2.       Be sceptical. Be VERY sceptical.
  • 3.       Don't be pressured or rushed to invest
  • 4.       Deal only with licensed financial institutions and authorised dealers
  • 5.       Check with the relevant authorities before investing/ depositing
  • 6.       Be extra careful with investments over the internet
  • 7.       In case an investment has been made, keep copies of all the investment and communications


The Bottom Line

It is easy to see how these schemes work, but participating in one involves deception and fraud because people will lose money that is promised in return. As with all investment plans you consider investing in, it is vital to ask the correct questions. Questions such as: What will this money be invested in? What is the rate of return? Who will be doing the investing? It is crucial to talk to professionals and to do your due diligence before investing your money in anything.

With this new found information and knowledge, BYIC sincerely hopes that you – yes, you – will do your part to share this information with as many people as you can to increase awareness and to hopefully reduce the number of victims of Get Rich Quick Scams.

Peace.
BYIC Research & Education Team
Prepared by:
Tan Liang Yen
Kim Kim Chia
Prashanth A/L K Palanival
Nelson Liew Cheng Yu
Fabian Au Waijune