Principle of Investment

2) Marketable securities

Gain-base plan will integrant 30% of capital to invest in marketable securities. We will diversify the money into few type of marketable securities in order to reduce risk.   Marketable securities are one of the investment that very liquid and can be easily converted to cash at a reasonable price.  All the marketable securities will be traded in the money market. Money market are also called cash investment due to their short maturities. This is the market that provide short-term, high liquid, low-risk instrument such as Treasury bill, Commercial paper, Certificate of deposit, Banker acceptance and Repurchase Agreement (REPO) are traded.  

Treasury Bills
First of all, 20% of capital will be invest in Treasury bill.
Treasury bills are recognize as the most marketable money market securities, issue through Bank Negara Malaysia (BNM) on behalf of government to raise short-term funds for the financing of Government expenditure. Treasury bill pay no obvious interest but are sold at discount price which mean less than par value, the holder get full par value payment from government when T-bill are matured, they are easy to buy and sell and T-bill do not have any call provision although T-bill tend to have a low return compared to other instrument it has the highest credit rating, it is recognized as the safest investment tool. Treasury bills have a short maturity range it is suitable for an investment portfolio, investor can keep funds in these treasuries if they have any needs of fund within the next year. Investor can optional choose either 3 month, 6 month or 12month with different rate 2.50, 2.56 and 2.57. There are no doubts about the safety and trustworthiness of the issuer since it was issue by the central bank and support by the strong financial background, so the degree of stability is ensure by public. In our plan, we will allocated 20% of capital in Malaysia Treasury bills due to their simplicity and liquidity. Investor can invest in the most convenience way through this plan, because we will help you to manage the securities with our professional to gain the maximum profit as we can in order to help investor improve welfare with the investor preferred level of risk.

Certificate of deposit
Certificate of deposit is a term deposit with a bank there are often issue by commercial bank but it can bought by brokerages. It was recognize as ‘money in the bank’; similar to normal savings account in that they are insured and thus nearly risk free. Certificate of deposit need to hold until maturity, similar to fixed deposit, the funds may not be withdrawn on demand. In exchange for keeping the money on deposit for the agreed-on term, institutions usually contribution higher interest rates than they do on accounts from which money may be withdrawn on demand, although this may not be the case in an upturned yield curve condition. Fixed rates are common, but some organisations offer Certificate of deposits with several forms of variable rates.  They set the terms and condition for the high interest with several factor such as length of time, amount of money invested. Of course, it likewise depend on the particular bank are chosen. By invest in the certificate of deposit, investor had the ability to seize the return ahead of time.

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