MAKE SOME INCOME (By Nik Zafri)

The strategies employed to invest and increase income are often complex and multifaceted when it comes to "practical".

However, I found some common themes emerge all the time which I sum up as the core investment strategies.

1) Diversification

Spreading investments across various asset classes (stocks, bonds, real estate, commodities) to reduce risk is one good move.

2) Long Term Perspective

Always focus on building income over time rather than quick gains. In short, greed will make you lose, so be patient.

3) Leverage

When you borrow, increase them on potential returns - it's risky but once you strike, it's worth. You can also get ASB loan and let them invest or reinvest for you. In the long run, you might get handsome returns

4) Get a good advice

Although Warren Buffet might not agree with me, but if you can afford it especially when you have no experience, it's logical to employ financial advisors or wealth managers to handle investments.

5) Always pay tax but optimize them

Draw up a good strategies to minimize tax liabilities but never avoid from paying tax

There are quite a number of investment vehicles.

1) Stocks and Bonds

Investing in publicly traded companies and if you have heard of government debt, go for them.

2) Real Estate

Own properties for rental income or appreciation.(REIT)

3) Private Equity and Venture Capital

Investing in startups and private companies.

4) Hedge Funds

Pooled investment funds that use various strategies to generate returns.

Alternative Investments can be purchase of assets like art, collectibles, and commodities.

Additional Soft Income-Building Sources

1) Business Ownership - Creating and growing businesses.

2) Intellectual Property - Developing and protecting patents, copyrights, and trademarks.

3) Inheritance - if you come from a rich family.

4) Risk-Taking - Pursuing high-reward, high-risk ventures.

5) Networking - Building relationships with influential people.

Also, think the way successful people think.

You must have access to information for e.g. exclusive investment opportunities and market insights

You must adopt a risk tolerance attitude - allowing yourself to pursue higher-return investments.

Have a long term perspective (Time Horizon) - enabling yourself to weather market fluctuations.

Good luck, just sharing my perspective from my so-called research. No guarantee of success unless you really work hard and do not let failure stop you. Remember, investing involves risk, and past performance is not indicative of future results. Just conduct thorough research or consult experts before making investment decisions.

ALERT DON'T FALL FOR UNLICENSED INVESTMENT - A REMINDER BY NIK ZAFRI

Many individuals remain unaware of the necessity for proper licensing from regulatory bodies when engaging in trading activities related to finance, funds, shares, derivatives, and precious metals. Both individuals and the companies they operate must obtain appropriate licenses.

For detailed information, please consult the Capital Markets and Services Act 2007 (CMSA) administered by the Securities Commission. Further reference can also be made to The Banking and Financial Institutions Act, 1989 or Companies Act 1965.

In the case of Gold, Bullion, or FOREX trading, refer to the Exchange Control Act 1953 (ECA 1953), which falls under the direct jurisdiction of Bank Negara Malaysia.

It is crucial to stay informed about these regulations to prevent direct or indirect involvement in illicit activities such as money laundering (The Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 - AMLA) or even bribery (Malaysian Anti-Corruption Commission Act 2009).

Avoid seeking loopholes in these regulations. Exercise caution and skepticism, especially when confronted with photos, screenshots of bank accounts, Get Rich Quick Schemes, unlicensed Multi-Level Marketing/Pyramid Schemes, or any other dubious schemes.

Despite current challenges, refrain from adding unnecessary burdens that may lead to suffering for yourself and your loved ones. Stay vigilant and adhere to regulatory guidelines to ensure a secure and lawful financial environment.

HEDGE FUND - PROPER REGULATIONS REQUIRED NOW!! (ALERT) - By Nik Zafri

Article 1 about Hedge Funds (Facebook Version) and Article 2 about Hedge Funds (Blogger Version)

Many disagreed with me at that time -- Yes...because it was written in 2009. (too early) - FYI - I was monitoring the European (EC) market at the time I wrote that article - I saw signs that there is a need to tighten up the loose ends especially on the subject hedge funds which I believe will become a talk in Malaysia (next week - May, 2010)
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Here's latest news from Singapore (Courtesy of Bloomberg) :

Singapore Reviews Hedge, PE Funds as Regulators Boost Oversight
By Netty Ismail

April 22 (Bloomberg) -- Singapore said it will review rules for its investment management industry, including hedge-fund and private-equity managers, as regulators increase oversight globally.

Hedge funds and private-equity firms are under scrutiny from regulators and lawmakers worldwide, who say they are partly to blame for the worst financial crisis in a generation. Singapore’s hedge-fund industry has grown into Asia’s second biggest behind Hong Kong as the government lured investment management professionals with tax incentives and grants.

Hedge funds worldwide posted net outflows of $285 billion last year, leaving assets at $1.6 trillion, according to Hedge Fund Research Inc., a Chicago-based research firm.

The regulator has set up the Investment Intermediaries Department to supervise intermediaries, including alternative investment managers, and to “drive regulatory policies” governing the industry, according to yesterday’s statement.

“MAS adopts an open and consultative approach with the industry, and remains committed to building Singapore as a fund management and alternative investment hub,” the regulator said.

World Effort

World leaders, including the Group of 20 countries that make up most of the world’s economy, have called for stricter oversight of the pools of private capital in the wake of the global financial crisis.

Funds won’t be able to get investment from U.S. banks, under proposals announced in January by President Barack Obama. The European Union’s Directive on Alternative Investment Fund Managers is currently being debated, with the European Parliament scheduled to vote on a final draft this year.

The “business and regulatory environment remains conducive to both traditional and alternative managers” in the city-state, MAS said.

MAS, also Singapore’s central bank, said last year it will fine-tune its “regulatory approach as appropriate,” after moves to make it easier for hedge funds to set up shop in Singapore than in other Asian cities such as Hong Kong and Tokyo helped fuel the industry’s growth in recent years.

Growing Industry

Hedge-fund managers are currently exempt from holding a capital-markets services license, provided they manage funds on behalf of 30 or fewer of what MAS describes as “qualified” investors. “I believe that the exempt fund-manager status should be replaced with light regulation,” said Albert Ee, founder of Singapore-based hedge-fund firm Pilgrim Partners Asia Pte. “As a financial centre, it’s important that hedge funds in Singapore should be run by experienced managers with good risk management processes and strong corporate governance.”

Singapore’s hedge-fund industry has grown to 138 single- strategy hedge-fund managers employing more than 800 professionals from near zero in 1997, according to a survey by the local chapter of the Alternative Investment Management Association. The industry oversees at least $34.9 billion, excluding assets managed by several of the large global firms, it said, making it Asia’s second biggest.

Local Rules

The island-state’s “lighter regulatory touch” has enabled hedge-fund managers to set up business “relatively quickly,” without risking any delay in getting the necessary licenses from the regulator, according to an overview of the industry published by AIMA.

Hedge-fund managers in Singapore are still subject to local rules on securities and futures trading as well as money laundering.

The size of Singapore’s asset management industry shrank about 26 percent to S$864 billion ($630 billion) in 2008 from a year earlier because of the global financial crisis, the authority said in its latest survey released in September.

--Editors: Andreea Papuc
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Nik Zafri's 'Unqualified' Comments (so don't quote me on this)

Yeap, I think Singapore is going somewhere. I did mentioned in one of my 'analysis' that Singapore will boom first and followed by Malaysia. But most definitely; as I said; this issue will become the next talk, next week (May 2010) So, just in case...

On Hedge Funds - fellas, I am not against it - Here's some excerpts :

Excerpt 1

I still think that Malaysia (in particular SC) should keep a close surveillance by having a revised version of regulations to monitor private equity company's especially.

Excerpt 2

European policymakers said:

"They (Hedge Fund Managers) many have exacerbated it by fueling bubbles with leveraged investments in the good times and then offloading assets by the bucket-load in the bad times"

Excerpt 3

Initial proposal from Nik Zafri to anyone out there reading my blog - who wish to listen :

You (Hedge Fund Managers) must first reveal your plan :

(To the proper authorities..I don't know..maybe SC, Inland Revenue, BNM) on:

a) managing level of capital,
b) managing risk,
c) valuation of assets and most important
d) your strategy in doing business.

2nd - STOP NOW if you're involved in any trade relating to MONEY LAUNDERING!! (so, is this the thing you're being discreet about?) Get out now before it's too late!

3rd - It's time to pay based on gains not losses!! Otherwise, we will go back to square 1...make money during down market..gosh...

Having this sort of regulations may help our economic recovery further but of course if the regulations are not strict enough and having loopholes...definitely there can be abuse - some people in the market will always creatively found a way to do 'evasive maneuvers'

DEAR HEDGE FUNDS MANAGERS

Although hedging is done 'discreetly' by some 'hedge fund managers', I still think that Malaysia (in particular SC) should keep a close surveillance by having a revised version of regulations to monitor private equity company's especially. I heard stories from some European friends that EC has come out with such regulations. Finally EC has come to its senses and limit of patience. (the line must be drawn here..this far..no further...) Anything > 1:1 leverage is only a 'rumour' and excuse being protective but if you go on being stubborn about it - it may be 'the end' of private equity...(trust me)

I know that many may disagree with me and they are willing to see me to debate endlessly on the subject (hey..you guys are forgetting, I am well aware of the mechanisms..ok?) Everyone involve in hedge fund in Malaysia in whatever capacity should know better what's going on this world today. Even the most popular and oldest Rolodex is slowing down..so, you should think twice before moving on...(not to mention Alpha, Pequot and Andor - possible shut down is expected)

Bursa Malaysia is just showing the signs of curing but if you should all know the danger of 'reopening old wounds'...look around you..do you care? Volatile price, foreclosure even unemployment (not to mention crime rates) etc can be translated into 'not favouring' the hedge funds...in short - 'losses'!! But so many of us claimed that hedge funds is not the cause but quoting European policymakers :

"They many have exacerbated it by fueling bubbles with leveraged investments in the good times and then offloading assets by the bucket-load in the bad times"

Many people follow your assurance that they'll be making money but they didn't actually get what they should be getting - but most of you fund managers love to blame 'the economic crisis'...what an absurd statement! (excuse me!) You are 'hedging'!! (making money in down markets - this doesn't work anymore..face it!) Traders and portfolio managers have been sending e-mails to me that they are loosing money out of their pockets...ask them why? (20% on top of 2% management fee? Ring a bell?)

But despite of all these talks of mine - I ain't implying that hedge fund is no good but during unsuitable times like today, something should be done either follow the rules 'religiously' or off you go! Why Nik? Here's my answer : it's almost 1998 all over again...and I'm sure you don't want this to reoccur. 1998 is not because of hedge funds but a proper regulations were not really there yet.

So, what sort of regulations Nik? You have ideas? Ok..first of all private equity and hedge funds 'people' must be transparent from now on...no more 'disreet'..no more 'classified'..no more 'confidentiality'. I know sometimes taxation is a big issue to you but give it a thought for just a short while - give your lending ears to listen to what I have to say before you click 'x' on this blog.
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Initial proposal from Nik Zafri to anyone out there reading my blog - who wish to listen :

You must first reveal your plan (To the proper authorities..I don't know..maybe SC, Inland Revenue, BNM) on:

a) managing level of capital,

b) managing risk,

c) valuation of assets and most important

d) your strategy in doing business.

2nd - STOP NOW if you're involved in any trade relating to MONEY LAUNDERING!! (so, is this the thing you're being discreet about?) Get out now before it's too late!

3rd - It's time to pay based on gains not losses!! Otherwise, we will go back to square 1...make money during down market..gosh...

Having this sort of regulations may help our economic recovery further but of course if the regulations are not strict enough and having loopholes...definitely there can be abuse - some people in the market will always creatively found a way to do 'evasive maneuvers'

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More to come...