Dividends of Unit Trust/Mutual Funds

I receive my dividends from my investment in unit trust or some call it mutual funds few days ago. I was delighted and very happy that my investment in unit trust really bear fruit after one year. The dividends I get from the investment is not a big sum of money. It is roughly RM150.00 to RM180.00 of my investment RM2000.00. I have calculated the return of my investment is roughly 7.8% to 7.9% per year.
I am quite happy with the performance of the fund I invested because 7.8% to 7.9% per year is quite good. If I invest my money in the bank in fixed deposit, then I would only get around 3.5% per year. So, the investment in unit trust has doubled my interest per year.
Actually, I do not get the money of the dividends. The dividends are auto-reinvested to help me buy more units of the fund. So, I am now having more units at hand and I will get even more dividends at the end of this year.
Basically, unit trust is quite good as a long term investment vehicles because the reinvestment of dividends will increase the number of units you have over a long period of time.

Examples of Calculation: You bought Fund AAA with RM1000 at RM0.25 per unit. So, you now have 4000 units of Fund AAA at hand.
After a year of investment, the Fund AAA finally pay you dividends. Let say it pays RM200.00 as dividends which will be 20% per year.
The dividends will be reinvested automatically to help you buy more units. If the price per unit at that time is RM0.30, so reinvestment of RM200 of your dividend will help you buy 666.67 units.
After 1 year, your total number of units will be: 4666.67 units. What if you hold the Fund AAA for 10 years? How many units you will have and how much dividend per year you will have? Assume the Fund AAA is paying 10% dividends per year for 10 years.

Look at the table below:

Year	Units at hand	Dividends (RM)
1	4000	200
2	4666.666667	233.3333333
3	5444.444444	272.2222222
4	6351.851852	317.5925926
5	7410.493827	370.5246914
6	8645.576132	432.2788066
7	10086.50549	504.3252743
8	11767.58973	588.3794867
9	13728.85469	686.4427345
10	16016.99714	800.849857

After a period of 10 years, the number of units you have is more than 16,000 units and it is helping you to generate more than RM800.00 dividends at the 10th year. You can see that your investment is increasing fast every year and you do not need to manage it at all. If the price of the Fund AAA is RM1.00 per unit, you can sell all your units at hand and all those units will turn into cash of more than RM16,000.00. Your initial investment is only RM1000.00.
Bear in mind that this example is only an initial investment of RM1000.00. What if you are investing RM10,000, RM50,000 or RM100,000 and you are investing for even longer period of time? The answer is simple, if you start with RM10,000, you will have over 130,000 units. If the price of Fund AAA is RM1.00 at 10th year, you sell all your units and you will get RM130,000.
If you plan to start with RM100,000, you will end up having 1375173 units and if you sell all units at RM1.00, YOU ARE A MILLIONAIRE RM1,375,173.00 after 10 years.
Notice: Not all funds perform at such a great rate of return. You need to consult your financial consultant or unit trust manager for help and advice.
You can visit the Public Mutual website to have a look at the current funds price. The price per unit, the higher return.
I am going to save more money and play focus investment for my unit trust investment.

The Moral of the Story: It Is the Best to Start Investing Early!!!

2 Ways to Make Money From Your Photos

I have been searching for ways to make money from my photos and I come to 2 sites that offer such services. Those 2 sites are Share A Pic and Skill Fights. Both sites are free to join and they are great sites that offers photographers to make money when people view on their photos. In the later part of this post, I will share some information about Share A Pic and Skill Fights. Both of the sites uses different idea to pay members money.
Share A Pic:
Share A Pic is a site that allow members to join for free and share their pictures with anyone. As a member, you can share your pictures on your blog, friendster, facebook, xanga and so on and so forth. The more views generated on your pictures in Share A Pic, then you will earn more money.
I think that making money from Share A Pic is quite easy because it pays based on the number of views generated on your pictures. Basically, it pays $0.22 per 1000 views. The earning will increase even though you do not reach 1000 views for your photos, it is real time earning.
Skill Fights:
Skill Fights is a site where members can join for free and upload photos. When your photos get votes and comments, you will earn points. You can comments on other photos to earn points too. You upload more photos and you earn more points. You can also join in tournaments and earn more points when you win.
This site is quite fun and challenging because you can compete with other photographers and earn points. The more points you earn, the more money you can earn from Skill Fights. It is quite simple and easy idea.
Both of the sites offer members to refer new users and earn extra income. You will earn 10% of your referrals earning using Share A Pic while you earn 250 points ($0.25) per referral using Skill Fights.
If you would like to join, you can join using the links in this post to help me make some extra money too.
If you are an enthusiasts photographers, then these sites are great to make money from your great shots.

Investor VS Trader

Are you an investor or trader of stock market? Do you know what is the difference between investor and trader? If you do not know, then it is very important to read about it and make your choice either you choose to be investor or trader of stock market. I am an investor yet, I am half-trader. It means that I am investing into stocks of great companies but if I have the chance to sell to gain profit, then I will sell. I am still an investor at core because I like to invest for long term rather than trading stocks.
Who is Warren Buffett? Is he investor or trader? Who is George Soros? Is he investor od trader?

Investors: Investors are people who buy stocks and invest for long term. It means that investors seldom buy and sell. Most of the time, investors buy and hold, and let stocks appreciate in the long term.

Warren Buffett is one of the investors of stock market. He is the ultimate investors of stocks. He is called the Oracle of Omaha. I read a lot of books about him and his investment strategies. It really takes time and hardworking researches on companies. Warren /Buffett is currently the world's richest person with total net worth of $67 billion.

Traders: Traders are people who trade stocks. They buy low and sell high. They will sell once they earn their targeted profit. Most of the time, traders never even care about what is the companies behind the stocks they buy. All they want is to make money by buying at low price and then sell at high price.
Trading is an old concept and it has been around for centuries. Trading is like playing buying and selling. Trader A buy AAA products and then sell to Trader B who offers higher price for the AAA product.

George Soros is considered as trader or speculator. He is quite famous because he is good at speculating. Currently, his total net worth is $9 billion.
So, are you an investor or trader of stock market? You need to make this clear because it is the basic mindset before you put any money into the stock market. If you are not sure whether you are an investor or trader of stock market and you are currently investing in stock market, then most probably you are gambling in the stock market.
So, please make your mind clear and set your mindset because mindset is extremely important to be successful in stock market.