Q : My Children are aged 1 and 3 and i would like to send them overseas for terteiary education. If i have RM50,000 as savings now, how should i go about investing in the different unit trust funds to ensure good returns and capital appreciation in 15 years from now.

A : Power of compaunding interest

Early planners always have the advantage of leveraging on the power of compunding earnings over time. Investing early will allow you to spread your capital outlay over the next 15 years and recoup any losses in the meantime. The few things you will need to determine before choosing your investment vehicle and commitment level will be the future value of their education. This will hepl you determine your targeted returns based on the time and your risk appetite.

Working out the future value of their education.

To start, determine the country you intend to send your children ti, its inflation rate, current cost based on estimated exchange rate, the estimated education fees, living expenses and other miscellaneous cost. With this, you can work out the future value of their education with the available online education calculators (log onto www.hdsim.com.my/tools/education).

Unit Trust as an Education Funds.

Unit trust can be and ideal investment option. However as with all investments, they should form only a part of your total portfolio. In this instance, you should bee looking for medium to long-terms capital growth through a mid-risk, income and growth or balanced fund as it is suited to investors with a relatively conservative outlook. Choose a fund and fund manager with an established track record and adopt a regular investment plan which may require a monthly, quarterly of half yearly commitment. Reinvest all income/earnings to ensure you meet target.

Article source/about:

The sun 12 Aug 2008/ Hwang DBS Investment Management Berhad is one Malaysia’s leading management companies for more info log on to www.hdbsim.com.my.

About Me :

Im the Unit Trust Consultants for CIMB Wealth Advisors Berhad who can sell the Hwang DBS Unit Trust Funds as 3rd party funds. Interested just contact me at 019-3649613 or email murtaza@cimb-wealthadvisors.info