Sean's        

     Answers    

For 

           Timothy Chin

Here Are The Answers Specially For Your Questions, Timothy! Sincerely From Sean Toh.

Dear Timothy,

First of all, I must say that you are not an ordinary investor! From the question you have asked about Sector ETFs or International ETFs showed that you are not any novice investor who know nothing about investing. Your ability to convert from RM 1,000,000.00 to about $455,000 Singapore dollars showed that you are pretty informed about the exchange rate of different currencies in the market. Although you are 43 years old now, your intention to use sector rotation on ETFs to get returns of 50% per annum which you think is possible if you know which ETFs hot sectors to go in and with a monthly investment of RM550 over the next 12 years compounded, this intended plan of yours might be able to help you achieve your financial goal of RM 1,000,000.00 when you retire. From the data that we gather from your question tells me that you are someone who are planning your personal finances with some thoughts. We shall answer all your questions by first defining the meaning of ETFs

What is an ETFs(Exchange Traded Funds) ?

Exchange Traded Funds are Collective Investment schemes. Collective investment schemes are ways of investing money with other people in order to participate in a wider range of investments. Collective investments schemes are usually referred to as Mutual Funds, Managed Funds or simply Funds. These funds account for a large portion of the trading on most stock exchanges.

While the structure of ETF's vary around the world, major common features include:

An exchange listing and ability to trade continually.

They are often index linked instead of being actively managed.

These qualities give ETF's some advantages over Mutual Funds. ETF's allow for a diversified portfolio at a low cost. They can be used in both long term buy and hold and for selling short and hedging strategies.

Typically ETF's replicate a stock market index, such as Standard and Poor's 500, or the Hang Seng index, or STI(Strait Times Index of Singapore). They may also contain stocks from a specific market sector such as energy, or a commodity such as gold. They often have amusing or catchy, upbeat names like, "Diamond" and "Spider". ETF's are most commonly found on the AME or American Stock Exchange but it is starting to emerge in the Singapore Stock Exchange too.

ETF's present an alternative to the traditional open ended Mutual Funds( Units Trust in Singapore ). The Open ended index funds are particularly good for this type of use.

What are Sector-Based Exchange Traded Funds?

These are Exchange Traded Funds (ETF) that have as their underlying tracking instrument an index or other financial product focused on a single market sector. These may be made up of stocks with the same or similar Standard Industrial Codes (SIC). Because they are composed of stocks within the same market segment, they may be more volatile than broad-based ETFs that usually span multiple market sectors.

 What are International Exchange Traded Funds?

International ETFs are basically index funds mirrored after the index of the stock indices by country region.

What are some of the features that make ETFs special?

Having defined the different terms about ETFs, an easy way to learn about ETFs is to click the free resources that we have prepared for you, Timothy.

Here are some resources for you to get started to learn all about ETFs!

1. Introduction to ETFs through SGX (Singapore Stock Exchange). A very comprehensive package with lots of free resources for your financial education. You can also find a list of ETFs listed on SGX with live quotes, reports, charts, podcasts and even tutorials to test your understanding after reading through all the materials.

2. A list of securities members that you can register to open an account to trade ETFs. Most of them offer online trading services.

3. Reduce your investment risks by using Dollar Cost Averaging technique. If you are not an expert investor who have the ability to time your investment.

Timothy, we hope all the resources will be able to get you started on learning how to invest in ETFs. As a token for the services that Credit Plus Health's team has provided you with the answers you have been looking for. We believe you have probably heard the saying - "Time Is Money!" and we are glad you are seeking advice from Credit Plus Health. Our consultation fees is shown below. We have advised you with the same trust that you are will also pay for our consultation fees.

Consultation Fee For 1 Question - $50 (Singapore Currency). Please Click The PayPal Button Below!

Credit Plus Health founded and created by Sean Toh is created solely to provide novice investors with the essential financial education to start their personal investing journey to control their investment destiny.  Hence, the business model used by our Credit Plus Health's Team is a publishing and affiliate partnering model which is also a low cost model with a virtual office using internet as the connector to provide the professional essential services to our clients. Sean Toh, a writer, certified financial consultant and educator, is representing financial company in the various industries and can be called upon to serve your financial needs. Our team of financial professionals at Credit Plus Health is actually a networks of friends and professionals who come together and also share the same vision of providing financial services to people who have no ideas how to plan their personal finances uses Credit Plus Health as a platform to provide the essential education to the public. We are licensed financial consultants who are working in the financial industries representing different registered banks and financial companies regulated by MAS ( Monetary Authority of Singapore ) and certified by FPAS (Financial Planning Association of Singapore) to advise financial matters to the public. If you are looking for professional financial advisors to plan your finance, you can e-mail us at seantoh@creditplushealth.org or call us at 65-96487595. Hopefully, Credit Plus Health will expand and exist with a registered office to play a bigger role in contributing more in the financial arena demanded by most people. It has a pleasure to hear you, Timothy , wanting to call and visit us from Malaysia when you arrive in Singapore on the 7th November 2007. Thank you for offering to call us and also visit us in out office, Timothy. Credit Plus Health does not have an actual office at the moment but rest assured of our prompt services and we are still in close contact through the above e-mail and phone number. You can call us or e-mail us and we could arrange to meet you in any hotels or meeting places of your convenience to discuss about your financial and investing needs. We could then bring you to the offices of our representing company based on who is the financial advisor serving you that he/she is licensed to represent to provide you with the financial and legal advice.

Always remember, you are in control and responsible for your investment decisions even if you ask a good financial planner to help you achieve your investment objectives. Never put all your eggs in one basket, only master investors like Warren Buffetts or George Soros know what they are doing. Last but not least, wish you all the success in your investment endeavors. Before I end, Timothy!

Although we have recommended and advise you on lots of matters, it takes more than education, resources and advice for you to be successful. You need to be patience and committed to your plan to achieve a bit of success. It’s that bit of success that will motivate you even more to learn and apply what you learned in life for your future success. Just in case, if you have been waiting the whole day or week for all the answers. We will like to apologize for the delay to your answers because we believe in giving our best advice to you personally and sincerely from our heart. We needed the time to understand the problems you faced, understanding them and finding the right resources for your education so that you have a higher success rate when you implement your plan.

Last but not least, may we wish you all the success implementing the plan and achieving some results that you can see for yourself. Do consult a proper financial planner or advisor if you are really in doubts. It's you that make the decision to decide if you want to be successful? Enjoy creating wealth with health. It’s has been our pleasure providing consultancy service to you, Timothy!

 Your Sincerely

        &

Credit Plus Health's Team

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