Einstein's PRESENTATION
GROUP MEMBERS
Dayang Seri LiaMaisarah SalimiRuthcille AnnieNurul Nadiah
what factors should be considered before making an investment ?
Potential investment risk
The uncertainty that loses may be incurred from the investments made
Incurred - become subject to something unpleasant as a result of one's own behaviour or actions
The Level of Return
Profit enjoyed by investors from investments
Liquidity aspect
Relating to how soon the investments or savings could be cashed out
Comparison of various types of savings and investments IN TERMS OF RISK LEVELS, RETURN LEVELS AND LIQUIDITY LEVELS
Risk level
- SAVINGS ACCOUNT : Risk Free- FIXED DEPOSIT : Risk Free- CURRENT ACCOUNT : Risk Free- COMPANY SHARES : High - REAL ESTATE : Moderate- UNIT TRUST : Low
RETURN LEVEL
- SAVINGS ACCOUNT : Low - FIXED DEPOSIT : Low- CURRENT ACCOUNT : Unprofitable-COMPANY SHARES : High- REAL ESTATE : High- UNIT TRUST : Moderate
LIQUIDITY LEVEL
- SAVINGS ACCOUNT : High- FIXED DEPOSITS : High- CURRENT ACCOUNT : High- COMPANY SHARES : Moderate- REAL ESTATE : Low- UNIT TRUST : High
QUESTIONS
Why is the rate of return for a current account is unprofitable?
Why are investment in shares are at high risk?
WHAT DO YOU UNDERSTAND ABOUT COST AVERAGING STRATEGY ?
PERIOD AH PERIOD UH
Cost averaging strategy is a technique commonly practised by investors who invest in shares with a fixed amount for a certain period such as monthly, quaterly or yearly regardless of the stock market conditions
Cost averaging strategies can help investors to buy shares with a lower average cost and the total number of shares owned will be higher within the same investment period, as opposed to buying them in a lump of sum or a single purchase
TEXT
The average cost per share for investment is the 'rounding cost' in ringgit
FOR EXAMPLE
tips !
When you use cost averaging strategy to invest in shares, the cost of shares you have bought will not be the highest nor will it be the lowest
ANDY
ANDY
With the cost averaging strategy given above, Puan hasniza earned 6,741 units by investing RM 12, 000cost averaging strategyAverage cost per share unit = RM 12, 000 / 6,741 = RM 1. 78
COST AVERAGING STRATEGYaverage cost = investment amount / number of share units owned
ADVANTAGES OF THE COST AVERAGING STRATEGY FOR INVESTORS
Able to take advantages of the unit price changes
- When the stock price is low, more units of shares can be puchasedexample : investment amount RM 1000 unit price a) RM 2. . 00 / b) RM 1. 50number of units owned a) 500 b) 625 - Indirectly helps investors to have more shares in the long term The average cost of a share unit bought by an invester can be reduced in the long term
Not Influenced By Emotions
- Invest consistently on a periodic basis the same amount of money without being influenced by emotions cause by share price fluctuation- definition of fluctuation an irregular rising and falling in number or amount
LOWER THE RISK OF LOSS
- Total investment is carried out on a regular and consistent manner, which helps investors to purchase based on current situation and avoid losses associated with lump sum investment
QUESTIONS !!
Emilia bought a unit of share worth RM 1 per share. Then, the share price dropped to RM 0.50 and Emilia bought one more unit. The total cost to Emilia is RM 1.50 to have 2 units of the shares. Calculate the average cost per share.
Share price of MAUI Company on 16th march 2018 = RM 1. 20 per unitShare price of MAUI Company on 26th May 2018 = RM 1. 60 per unit Calculate the average cost per share of the MAUI Company.
THANKYOUU <3333
Maths Presentation Chap 3
DAYANG SERI LIA SYAFIAH BINTI ABANG FADLY Moe
Created on October 20, 2022
Start designing with a free template
Discover more than 1500 professional designs like these:
View
Memories Presentation
View
Pechakucha Presentation
View
Decades Presentation
View
Color and Shapes Presentation
View
Historical Presentation
View
To the Moon Presentation
View
Projection Presentation
Explore all templates
Transcript
Einstein's PRESENTATION
GROUP MEMBERS
Dayang Seri LiaMaisarah SalimiRuthcille AnnieNurul Nadiah
what factors should be considered before making an investment ?
Potential investment risk
The uncertainty that loses may be incurred from the investments made
Incurred - become subject to something unpleasant as a result of one's own behaviour or actions
The Level of Return
Profit enjoyed by investors from investments
Liquidity aspect
Relating to how soon the investments or savings could be cashed out
Comparison of various types of savings and investments IN TERMS OF RISK LEVELS, RETURN LEVELS AND LIQUIDITY LEVELS
Risk level
- SAVINGS ACCOUNT : Risk Free- FIXED DEPOSIT : Risk Free- CURRENT ACCOUNT : Risk Free- COMPANY SHARES : High - REAL ESTATE : Moderate- UNIT TRUST : Low
RETURN LEVEL
- SAVINGS ACCOUNT : Low - FIXED DEPOSIT : Low- CURRENT ACCOUNT : Unprofitable-COMPANY SHARES : High- REAL ESTATE : High- UNIT TRUST : Moderate
LIQUIDITY LEVEL
- SAVINGS ACCOUNT : High- FIXED DEPOSITS : High- CURRENT ACCOUNT : High- COMPANY SHARES : Moderate- REAL ESTATE : Low- UNIT TRUST : High
QUESTIONS
Why is the rate of return for a current account is unprofitable?
Why are investment in shares are at high risk?
WHAT DO YOU UNDERSTAND ABOUT COST AVERAGING STRATEGY ?
PERIOD AH PERIOD UH
Cost averaging strategy is a technique commonly practised by investors who invest in shares with a fixed amount for a certain period such as monthly, quaterly or yearly regardless of the stock market conditions
Cost averaging strategies can help investors to buy shares with a lower average cost and the total number of shares owned will be higher within the same investment period, as opposed to buying them in a lump of sum or a single purchase
TEXT
The average cost per share for investment is the 'rounding cost' in ringgit
FOR EXAMPLE
tips !
When you use cost averaging strategy to invest in shares, the cost of shares you have bought will not be the highest nor will it be the lowest
ANDY
ANDY
With the cost averaging strategy given above, Puan hasniza earned 6,741 units by investing RM 12, 000cost averaging strategyAverage cost per share unit = RM 12, 000 / 6,741 = RM 1. 78
COST AVERAGING STRATEGYaverage cost = investment amount / number of share units owned
ADVANTAGES OF THE COST AVERAGING STRATEGY FOR INVESTORS
Able to take advantages of the unit price changes
- When the stock price is low, more units of shares can be puchasedexample : investment amount RM 1000 unit price a) RM 2. . 00 / b) RM 1. 50number of units owned a) 500 b) 625 - Indirectly helps investors to have more shares in the long term The average cost of a share unit bought by an invester can be reduced in the long term
Not Influenced By Emotions
- Invest consistently on a periodic basis the same amount of money without being influenced by emotions cause by share price fluctuation- definition of fluctuation an irregular rising and falling in number or amount
LOWER THE RISK OF LOSS
- Total investment is carried out on a regular and consistent manner, which helps investors to purchase based on current situation and avoid losses associated with lump sum investment
QUESTIONS !!
Emilia bought a unit of share worth RM 1 per share. Then, the share price dropped to RM 0.50 and Emilia bought one more unit. The total cost to Emilia is RM 1.50 to have 2 units of the shares. Calculate the average cost per share.
Share price of MAUI Company on 16th march 2018 = RM 1. 20 per unitShare price of MAUI Company on 26th May 2018 = RM 1. 60 per unit Calculate the average cost per share of the MAUI Company.
THANKYOUU <3333