Different Types Of Investments That You Can Make
Hello everyone, this is Sean from Value Investing College. Today, I want to talk with you about the different types of investment you can make using your money. Well, if you don’t do anything to your money, you know that over time because of inflation, it becomes lesser and lesser. Let’s consider the different levels of investment you can make.
The first investment or immobilier investment exactly, you can put your money in the bank and this is okay because we all need money in the bank but consider a lot of returns they can give you. Let’s say your points like [00:35 – figzy ?]. I will just give an estimate. It’s probably giving you about 1 percent and I remember driving my friend, Joshua Hung, and he tells me that a bank is a safe place to invest or rather a safe place to put your money in. But think about it this way, if you believe that banks are safe, why don’t you invest in the shares of the bank and we will talk about this later which is a higher level up in the investment.
Now, what are some of the other choices? Moving up the ladder, something that they do higher percentage returns maybe is things like unit trust. What are the historical returns of unit trust? I will let you consider because depending on what unit trust you’re finding, you have to consider a few things. For unit trust when you stop buying into it, most of these investment products are really in what we call a sales charge. It may be about 2 percent, maybe about 1 percent but what it means is your money immediately a certain percentage is going for the sales charge and subsequently, you may also have what we call management fee. Now, this management fee can be 2 percent, 3 percent or maybe 1 percent. So, what it means is even before your money stopped to make money a certain percentage is taken away and if you ask me, I think it’s fair enough. Why? Because you’re asking the professionals to do it for you and therefore, you could have paid them as well.
So, you have to take note that if you do not want to manage your own money, you don’t have to investment on your own, you go to pay the professionals and it’s a fair thing. But if you are willing to just invest on your own or learn how to invest, there’s higher potential then we’ll share you with the next portion where you can actually beat most of the professional upon investment and this is based on historical study. Okay? It’s called the STI ETF. Now, what happens is in this market as a product called STI ETF and you can search on one of my videos where I talk about how to participate in the STI ETF and what is it about. In using this STI ETF based on historical trend, they are talking about even 8 percent to 11 percent but I want to be conservative. I’m going to share you probably you can get something like 5 percent or 6 percent and this also includes dividends as well. There’s a video on it. You can search on it or you can come to one of my workshops and we’ll explain to you how to invest on STI ETF or in other products as well.
Let’s move on to the next level. Now, the next level is something that probably most of you have heard about and this is what I called the REITs. Okay, basically what we are doing is we are investing into a stock that gives dividends. When we look at the REITs market right now, you can get something to up even 6 to 7 percent. Again, I want to be conservative. I’m going to put there 6 percent. Now, the higher financial knowledge you have, you realize you have a chance of getting a higher percentage or your money works harder for you.
I’m going to show you what I personally use and I use this thing called value investing. This consists of picking my own stocks, stocks that give me up to 10, 20 or even 30 percent and this is done again in a conservative in a structured manner and this one, if you look at the tracker cost of Warren Buffett and other very strong value investors, you can expect up to 15 percent above again to keep it a conservative level.
So, this is something that I want you to see the overview and remember, as higher percentage increases as well as a higher percentage, you have higher financial intelligence and that’s where if you are interested to learn how to make 15 percent and above and you want to take hold of your financial destiny, I want to invite you to some of my free workshops. We’ll talk about how we do value investing. So, this is Sean Seah from Value Investing College. I hope it helps you in your investment journey.