Money and Inflation Rate?

What you can see here is the inflation rate in Malaysia is not stable which is fluctuation. What you can do with RM100k? What will happen to that RM100k in few years later? If we keep in as the fixed deposit? What happen?

The Value of RM100k in few years later
Inflation Rate 2% 4% 6%
10 Years RM 81k RM 66k RM 53k
20 Years RM 66k RM 44k RM 29k
30 Years RM 54k RM 29k RM 15k

As you can see here, the amount of our money in the bank which is considered as the fixed deposit account going to be less than due to the inflation rate. So, the best way to keep you money is you can invest your money through the any unit trust. For example, in Malaysia, we have Public Mutual, CIMB Group, ING Funds, and so on.

I’m going to share the information about the ranking of the Unit Trust in Malaysia

Top Ten Private UMTCs

Fund Size

as a Aug 31, ’08

(RM million)

Market Share

as at Aug 31, ’08

(%)

Market Share

as at July 31, ’08

(%)

Public Mutual

25, 704

38.4

39.0

AmInvestment Services

9, 163

13.7

13.5

CIMB Group

8, 137

12.2

12.2

Prudential Fund Management

3, 744

5.6

5.4

Hwang-DBS Investment Management

3, 643

5.4

5.4

OSK-UOB Unit Trust

3, 532

5.3

5.3

HLG Unit Trust

2, 490

3.6

3.6

ING Funds

2, 146

3.2

3.2

Pacific Mutual

1, 806

2.6

2.6

MAAKL Mutual

1, 220

1.9

1.9

Sub-Total

61, 585

92.0

92.1

Total Private Net Asset Value (NAV)

66, 949

100.0

100.0

Public Mutual at the top of the ranking compared to the other Investment Company in Malaysia and they hold the biggest fund size in Malaysia that is RM 25,704 million.

As the conclusion, you can save your money in this Unit Trust rather than you keep it in the Fixed Deposit account. What can I say here is “When there is a crisis, there will be an opportunity“.