| According to the Cashflow quadrants by Robert | | | | company has financial problems, then I face the risk |
| Kiyosaki, I will need to switch to either a business | | | | of losing money if the company were to liquidate. In |
| owner or an investor to become wealthy. If I were | | | | the case of mutual funds investment, if the fund |
| to choose the path as an investor, I realized that | | | | house had financial woes, I would be asking for |
| there are certain responsibilities that I need to fulfill. | | | | trouble by investing my money with them. |
| What are the responsibilities? | | | | Next, I have the responsibility of choosing the right |
| To answer this question, let use the example of | | | | investment product. If I choose the wrong |
| investing in mutual funds. | | | | investment products, I am almost guaranteed to loss |
| As we all know, fund managers managed mutual | | | | money. In case of mutual funds investment, if I had |
| funds. They are expert and more qualified than the | | | | chosen a dotcom fund just after the dotcom bubble |
| average investor in stock investment. Thus they are | | | | had burst, I would definitely be losing money. |
| in a better position to make money from the stock | | | | Then, I have the responsibility of getting the |
| market. | | | | cheapest investment cost. If I have choose an |
| Another advantage of mutual funds is that there is | | | | investment with high investment cost, then it simply |
| diversification to reduce risk. The amount of money | | | | means that my investment return needs to perform |
| is pooled to invest in different stocks, thus achieving | | | | better than the high investment cost before I can |
| diversification. These are the two selling points of | | | | make money. In the case of mutual funds |
| investing in mutual funds. | | | | investment, I should look out for ways to reduce |
| When I initially started to invest in mutual funds, I | | | | sales charge, expensive ratio, fund management fees |
| never do any detailed research. Like most people, I | | | | and so on. |
| simply invest in a mutual fund that I think it will make | | | | Lastly, I have the responsibility of planning for my |
| money. The decision is usually purely based on the | | | | investment. Like what I have learned from the Rich |
| information presented by the sale persons. Happily, I | | | | Dad's series by Robert Kiyosaki, investment is a plan. |
| invested and forget about it. I felt that since the | | | | In the case of mutual funds investment, I should |
| expert fund manager is managing my investment, I | | | | time my entry and my exit properly. The |
| had nothing to worry about. And I never really | | | | performance of the mutual funds goes up and down |
| monitor the performance of the mutual funds. | | | | over the years. If I had not set any profit target for |
| This did not just happen to mutual funds investment. | | | | my mutual funds investment, then I would be holding |
| I did that to other kind of investments as well. I felt | | | | on to the funds indefinitely. I would end up not selling |
| that I wanted to spend as little time as possible and | | | | my mutual funds when there is a reasonable profit. If |
| leave everything to the experts. I was lazy to learn | | | | I needed my money when the market had dropped, |
| and manage my own investments actively. | | | | then I would be losing money by cashing out at the |
| Later, I learned from the Rich Dad's series by Robert | | | | wrong time. |
| Kiyosaki that financial education is essential. Since I | | | | The above are just some responsibilities as an |
| always desire to be wealthy, I have decided to gain | | | | investor. They are by no means complete. I believe |
| financial literacy. After studying for a few years, I | | | | when I learn more, the list of responsibilities will grow. |
| have learned a lot of things and that really open my | | | | In short, one need to be responsible for one's |
| open eyes. | | | | investments. |
| As an investor, I am responsible for the outcome of | | | | * DISCLAIMER * |
| my investments. No one else is responsible for the | | | | The author only provides the material and information |
| result of my investments. This is the part where | | | | as a layperson's views about an important subject. |
| most people missed out. They thought that they | | | | The materials and information are from sources |
| could leave things to the expert and do nothing. | | | | believed to be reliable and from his own personal |
| Firstly, I have the responsibility of selecting the | | | | experience, but he neither implies nor intends any |
| expert to manage my investments. I need to select | | | | guarantee of accuracy. |
| expert based on their track records. In the case of | | | | All the materials, information and procedure in this |
| mutual funds investment, I need to select the fund | | | | book are only the author's personal opinion. You must |
| manager who has track records to increase my odds | | | | consult your own professional advisor and other |
| of winning. | | | | reputable sources on any matter that concerns you |
| Secondly, I have the responsibility of monitoring my | | | | or others. |
| investments regularly. If things are not in order, I | | | | The author, publishers and distributors are not |
| should consider cutting loss and get out of the | | | | competent and do not profess to give legal, |
| investments. In the case of mutual funds investment, | | | | accounting, medical or any other type of professional |
| if I have invested in a particular sector, I need to | | | | advice. The reader must always seek those services |
| check that there are no bad news regarding the | | | | from competent professionals who can review your |
| sector that may affect my investments. If the | | | | own particular circumstances. |
| sector is expected to perform badly for the next | | | | The author, publisher and distributors particularly |
| few years, then my mutual funds investment will | | | | disclaim any liability, loss, or risk taken by individuals |
| definitely perform badly. Then, I should consider | | | | who directly or indirectly act on the information |
| cutting loss. | | | | contained herein. All readers must accept full |
| Thirdly, I have the responsibility of choosing the | | | | responsibility for their use of this material. |
| correct investment company. If an investment | | | | |