Dividend Magic

Saving and Investing towards Financial Independence in Malaysia

Financial Independence

How Personal Finance and Frugality Built My Portfolio

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Filed Under: Financial Independence, Frugal, Portfolio - Freedom Fund 23

The Freedom Fund – A Product of Good Offense and Defense

I’ve often been asked how I built an RM400K (almost RM500K) portfolio by the age of 30—the answer is simple: frugality. This post isn’t about boasting; it’s about sharing the disciplined, frugal habits that made it all possible.

I can narrow it down to two basic parts – Offense and Defense.

The first and most obvious is your ability to generate income and returns – your offence. With a high income, be it from your day job, side hustles, business, or investments, a good offence is directly proportional to your increase in wealth.

However, based on my experience, a good and solid defence is perhaps much more important than your income. A solid defence is equivalent to having a high savings rate and being frugal.

Let me start off by saying that playing good defence and being frugal isn’t for everyone. I am not telling you to follow and copy what I do to the letter, but this is how I was brought up and how I built my Freedom Fund.

My Childhood / Youth

I’d like to think that my childhood and good early parenting helped make me the person I am today.

I am from a middle-class family. We’ve had our fair share of ups and downs. We’ve never gone hungry or without a meal but food was never EVER wasted.

I got RM10 per week from my mum during primary school. Thus, the first lesson in budgeting was born. If I spent all RM10 on Monday on nasi lemak and french fries, I’d starve for the week during recess. Even at that young age, I managed to save some money every week. That money was then used to buy stuff like erasers for that eraser-flipping game.

Fast forward a few years, high school was pretty much the same. I had a bump in allowance of course but I was still saving money every week. I recall looking enviously at my friends who all had iPods. I had to save money for a year before getting my own. That feeling of achievement at the end though, was worth it.

University – One of the biggest regrets I have to this day is that I didn’t take the time to apply for scholarships after my SPM. I surprisingly got really good results but no one taught me about scholarships.

I had the opportunity to study abroad as well with my parents offering to fund my studies in Australia. Instead, I completed my education locally to save my family money.

Back then, I was fortunate enough that my parents were able to pay for my education. However, I took out a PTPTN loan anyway as the interests were lower than FD rates. It was a no-brainer for me. I took my parent’s money for my education and placed them in FDs. And after 3 years of education, guess what? PTPTN was giving out a 20% discount for those who settled their loans early. At the age of 21, I had made a 20%+ return. This was to be my seed money.

Another thing that helped fund my portfolio initially was that I took a part-time job when I was studying. The money was one thing but it helped build character and a sense of gratefulness when I eventually entered the workforce full time. So parents, even if your teenage child doesn’t need to get that part-time job, I think you should make them work anyway.

Entering the Workforce

In the first week of entering the workforce, I followed my seniors and colleagues around. We mainly ate in the mall costing me RM15 – RM25 per meal. This was when I was on an RM2,800 salary. Thankfully, I smartened up pretty quickly and my staple food was economy rice – chap fan.

I had breakfast at a nearby kopitiam – eggs, toast and coffee for around RM5. Lunch was economy rice which cost me around RM10 or if I’m feeling rich, RM13. I had my dinners at home. This was my life for 4 years. Of course, there were times when I splurged occasionally. Birthday meals, dates, the usual.

During this time, if memory serves, I had a savings rate of around 50%. This was when I started buying stocks. I spent the day at work and in my free time, I analyzed stocks. Sunway, Nestle and Scientex were my very first stocks and I still hold them to this day.

Being Frugal Today – A Penny Saved is a Penny Earned

Today, as you can tell from some of my posts on social media, I do splurge a little on food and travel. But let me assure you, every other day I am still in essence a frugal person.

I still play good defense and it is in my nature to be frugal. I still go for that economy rice (now RM15) when my friends and colleagues go for lunch at the nearby bistro.

I still turn off the lights and appliances when I leave the room. I even do it when I’m not in my own house/property.

I still do not turn on the tap to the maximum when washing the dishes.

I make sure to have a fan in my room and office so I don’t have to turn on the air conditioning. And at times when I am hot and I have to, I set it to 24°C. That’s the lowest I’ll ever go.

I practice most hacks on frugality like waiting a week before making a big purchase. I pay myself first when I get my salary. I buy in bulk whenever I can. And I love credit cards for their cashback and points.

All these might seem a little extreme to you, but this is how I live. It isn’t tiresome for me (it might be for the people around me), but I believe these are good habits to have. And all these, in a huge way have helped me immensely in wealth creation.

Because a penny saved is a penny earned, a penny earned is a penny invested and compounded.

A few of the stuff I use to save, earn points etc can be found hERE.

Despite everything I’ve laid out, remember to treat yourself to that occasional good meal, to travel and experience the world once you’ve built up your portfolio. Use your dividends and passive income for some leisure. Just remember to flip that light switch off before heading for that holiday.

End.

Both defence and offence are equally important on the road to financial independence. With my savings and frugality, I wouldn’t have much of a portfolio if I did not invest my money. So remember to always invest. And invest for the long term.

I apologize if you came here looking for tips on how to invest and how to pick stocks and build wealth. But the truth is, with me at least, it was discipline and a good solid defence.

It’s a boring route and definitely not for everyone. So please do not feel bad about yourself if you are a big spender. Your huge income capabilities could very well outweigh your bad defence.

It is however my intention and wish that perhaps after reading this, you just might turn off that switch when you leave the room.

Do not confuse frugality with being cheap.

Onwards and upwards!

For the next article of the FI/RE and Savings Series, check out article 003 – Passive Income in Malaysia.

As always, follow my Facebook and Instagram to keep up to date!

What to Do During a Bear Market in Malaysia

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Filed Under: Investment, Dividends, Financial Independence 8

What is a Bear Market?

In general, bear markets are markets in which the prices of securities fall by more than 20% amid widespread negative investor sentiment and fear. It can last from weeks to decades.

So, don’t be so quick to call a market a BEAR.

Things You Should Do During a Bear Market

Always Stay Invested

I’ve said this countless times, and it stays true time and time again. In the long term, you’re always better off staying invested.

And if you’ve been a reader of the site, I would like to assume – like me, you’re a long term investor.

”Wouldn’t it be better to sell off my stocks now and buy when the market bottoms out?”

This is the most frequent question I got during the last few weeks of turbulence. I even came up with a standard reply to copy and paste.

The above theory is sound, but I for one will never know when a market ‘bottoms’ out. And neither would you.

Instead of chasing that bottom, I’d suggest averaging down your stock positions regularly. And when a market rebounds, and trust me it will, you’ll be in prime position for the biggest upside of your life.

Remember the Fundamentals

Don’t panic. Don’t sell. Don’t panic sell.

Remember the reasons you bought into the stock and your portfolio in the first place. During a bear market, the company’s fundamentals will not have changed.

Do not just sell because the stock price is dropping. That goes against conventional wisdom.

What I am Doing

The Freedom Fund isn’t spared the current market downturn. In fact, my return right now is at a measly 0.91%. Since inception.

However, I’ve received and will continue to receive dividends every month. Which is why there’s no panic selling from my side.

Of course, there will always be regrets in hindsight where I wished I had sold stocks earlier so I’d have more money to spend now. But I’m happy where I am – receiving dividends while the market goes crazy.

So this is what I’m actually doing – I’m purchasing stocks and averaging down on my positions. And to continue doing this for the next few months or even years, I’d need cashflow. AND Dividends = Cashflow.

The money I’ve actually saved up in Fixed Deposits and in my savings account will be utilized and used to make more buys.

It is the Best Time to Start Investing

If you’re ever on the fence and wondering if you should start investing, the time is now.

You can read up on how to start investing hERE.

If you’ve yet to open a brokerage account, I’d recommend Rakuten Trade. They offer one of the best rates and you can do everything online right now.

And if you don’t want to invest on your own, I’d suggest a robo-advisor like StashAway.

End.

Now, this isn’t a call for everyone to take up arms and buy, buy, buy.

Instead, I am telling you to keep a calm mind and purchase more stocks if you are able to. Do not go over your risk threshold.

It is also a reminder to always, always stay invested.
Onwards and upwards my friends.

As always, Facebook and Instagram. Follow, keep up to date.

Hello 2020!

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Filed Under: Dividends, FI/RE, Financial Independence 0

My Goals

Financial

Let’s start off with my goals set way back in 2018.

  • Dividend yield > 5%
  • Total dividends > RM20,000 p.a.

Those were the goals I set out to achieve at the start of 2019. Here’s where I am at now.

  • Dividend yield:  4.16%
  • Total dividends: RM16,322.27

As compared to 2018, both my yield and my total dividends have dropped. I can attribute this to the bad performance of some companies I hold and the markets not doing well. But at the end of the day, it is on me because I held on to those stocks and I should be ahead of the market.

So, come 2020, I’ll be sprucing up and making some changes to the Freedom Fund. Time to get the dividend yield above the 5% threshold, lock in some profits and cut some losses.

For 2020:
Fix the Freedom Fund. The aim is still 5% dividend yield per annum with the final goal being RM36,000 in total dividends every year.

Thereafter, I’d want to set aside some money to invest in riskier, high growth potential companies.

The Blog

The blog has been making steady progress over the years. Dividend Magic has officially crossed the 1 million views mark. It’ll be exciting to see how the site does in the coming years.

You may have come across a few more Sponsored Posts than usual.
I’d like everyone to know that I vet through and at the end of the day only take on jobs that I personally approve and use. So, the next time you see the tag [Sponsored], do know that it’ll probably bring some value to you.

For 2020:
I’ve made a decision moving forward to focus on quality as opposed to quantity when it comes to sponsors. I’ll be choosing to work with a select few that relate closely to investing and what I’m writing about.

Health

In the past, I’ve been focusing a lot on financial goals but I’d like to keep myself accountable on the non-financial aspects of my life as well. So the goals will be a little more personal this time around.

I’ve been hitting the gym 5 times a week now. Also, instead of the usual strength and vanity muscle workouts, I’ve been focusing on mobility and stretching.

Meditation is also a big part of my routine now. If you all want to be more productive and focused on basically everything, I highly recommend meditation. It’ll take up only 10-20 minutes of your day.

For 2020:
I’d want to continue my 5-times a week work out sessions.

Also, I’d like to make meditation a permanent routine and habit of mine. First thing in the morning and one more in the evening.

And, a better diet.

Personal

I’ll be increasing my budget for travel as well as for food moving forward. So look forward to more posts and photos like this on my Instagram.

and this

I’ll leave you with a little video of my how my 2019 went.

https://youtu.be/72fM8-SY-10

End.

This is how the Freedom Fund looks going into 2020.

Gross Investment: RM392,717.20
Market Value: RM458,476.77
Dividends (2019): RM16,322.27
Dividend Yield: 4.16%
Special Dividend: RM11,970.00

2020 would be a good year to start investing. If you’re looking to start, start hERE. If you haven’t got the funds, please start saving.

To a stellar year ahead. Onwards and upwards.

Follow me on Facebook and Instagram to keep up with my dividend income updates.

ASNB – Fixed-Priced ASM (Amanah Saham Malaysia) Units

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Filed Under: Fixed Deposits, Savings Accounts etc, Financial Independence, Investment 15

Updated February 2025

Latest update (August 2023) – ASNB opened up once more, for its Fixed-Priced ASM funds, the new limit is RM300,000 per individual. This will last till 31 October 2023.

Pretty straightforward on how to get your units, sign up on MYASNB and transfer your funds. I do it via internet banking.
Sign up link hERE.

ASNB - Fixed-Priced ASM (Amanah Saham Malaysia) Units


Link to document hERE

ASNB had on 1 May opened up its Fixed-Priced ASM (Amanah Saham Malaysia) fund for all Malaysians. But as we all know, most non-bumis will be interested in this. Bumiputras in Malaysia will be better off investing in ASB funds.

Did a post on Instagram on 1 May as well as a subsequent Q&A session with everyone via stories as I anticipated lots of questions from everyone.

You can find it in the post below and the full Q&A session via the Stories Highlight section on my IG page, titled ASNB Q&A.

My ASM Portfolio Now – This is a Rare Opportunity

Many current investors of the ASM fund will know that it is notoriously hard to get units. You hear stories of people pestering bank clerks every day to check for available units, lining up during festive seasons in an attempt to get units as you’ll only get them when someone else sells.

So, if you’re interested, grab it now. And to show you that I’m serious about this, I’ve put in the max RM100K allowed for each individual. Withdrew FD money for this and will be parking it here.

Now, I hope you know that the reason I’m showing this is to be 100% transparent. With or without a referral code, I put my money where my mouth is.

ASNB – ASM Dividend and Rate of Return

As only Amanah Saham Malaysia (ASM) is opened this round, the fund declared a 4.5% return for FY2023.
In 2022 and 2021, it was 4% and in 2020, it was 4.25%. Go back further and you can even see 5-6% returns.

You can find the full list hERE.

Key Things to Note

  1. How to sign up? Via their app hERE (you can do it 100% online)
  2. Malaysians only (you’ll need your IC to apply)
  3. Go for their Fixed Priced units only. Forget the Variable Priced ones as those are your traditional unit trusts, with fees and all.
  4. Fixed priced means you buy at RM1 per unit, you sell at RM1 per unit, this is purely a dividend play fund.
  5. Is it safe? Your assets are held in trust with Amanah Raya Trustee Berhad
  6. There is a limit this time around of RM100K per user until 31 July 2023.
  7. For other questions, please take a look at the ASNB Q&A highlights on my Instagram page.

More FAQs on this by ASNB officially below.

Previous Updates on How I got my Fixed-Priced ASM (Amanah Saham Malaysia) Units

Updated March 2022

There is a new 2022 ASNB campaign to get more fixed-price ASM units. Got this one from Maybank again and the brief details are as follows:

  • Ratio is now 60% variable price (VP) and 40% fixed-priced (FP); this is an increase from the last one I did!
  • Minimum total investment is RM10K; and
  • VP fund now has a lower sales charge.

I’m still on the fence about topping up my ASM fixed-priced funds. Dividends have been good but I really hate the sales charge of the VP funds from the bundle.

ASNB and All Their Funds

Amanah Saham Nasional Berhad, more commonly known as ASNB handles the funds found below.

ASB and ASM

The coveted fixed-price funds are what we will be focusing on today. Not

A thing to note – ASNB provides two kinds of funds. The first is the fixed-priced funds – namely Amanah Saham Malaysia (”ASM”). The variable-priced ones are just your normal unit trusts and mutual funds and are subject to NAV change, which means a potential loss for you. And you all know how I feel about them because of their fees.

I’ve been trying to get my hands on additional units of the ASM funds 1, 2, and 3 for ages now. I managed to get RM17,500 worth of it a few weeks ago and here’s how I did it (in 2019).

Now, if you’re a Bumiputera of Malaysia, you’re in luck. You’re automatically allocated units in the ASB funds. These typically give above 6% returns, with bonuses and stuff it’ll be in the 10% region.

Non-Bumiputeras, you don’t get to touch the ASB funds. The next best thing is the fixed-priced ASM funds I mentioned earlier. These are lower in returns compared to ASB though.

You’ve heard of aunties and uncles queueing up every damn day at banks just to ask the lady at the counter to query the system for available ASM units. This isn’t hearsay. I too do this on occasion.

The common belief is that during festive seasons, there will be a higher chance of available units as people tend to sell their units then. I’ve never gotten it this way.

In fact, I count myself among the lucky few because my mother had got me about RM3K worth of ASM units when I was younger.

ASM vs EPF

A common comparison I get from readers is ASM vs EPF. The dividends from ASM fixed-priced funds like ASM3 is lower compared to EPF of course. Instead, you get the flexibility of withdrawal for your ASM3.

I will probably max out my annual EPF and then put additional money into ASM FP funds.

Getting Additional Fixed-Priced ASM (Amanah Saham Malaysia) Units

The traditional way of purchasing additional units is as follows:

  1. You queue up and ask the bank if they’ve got available units. Chance? 0% for me
  2. You sign up at ASNB’s website and try to purchase online. You save time queuing but I have yet to get any.

Here’s the third way. I managed to get RM17,500 worth of ASM3 units a few weeks ago through my relationship manager at Maybank.

A few things you should know beforehand if you’re new to the blog.

  1. I’m a Maybank Premier Wealth customer and I have a relationship manager (”RM”).
  2. This is a campaign by Maybank. I ain’t sure if it’s only for Premier Wealth customers but my RM brought it to my attention.

OK. So this was the text I got:

Upcoming ASNB VP & FP Bundle Campaign 2019- Phase 3

Campaign Period: 10 – 20 Sept 2019 Bundle :
ASN IMBANG 1 or 2 & ASM3
Minimum: RM30k
Ratio: 65% ASN Imbang1/2 : 35% ASM3

The ASM3 units are limited and available on a first come first serve basis.

I had to basically put in a minimum of RM30K in. 65% will go to ASNB’s variable fund and the remaining 35% into its fixed-priced ASM3 fund.

ASNB is basically trying to promote and get you to invest in its variable fund which charges a 4% sales charge. I forgot the management fee per annum. But yeah, mutual funds.

I decided the 4% sales charge was worth it in the long term and invested RM50K into it total. Which gave me that RM17,500 in ASM3 funds.

As you can see, I was charged 4% immediately and the variable fund dropped in value since.

End.

That’s how I got RM17,500 worth of ASM funds. At a cost of RM1,300. Effectively, a 7% sales charge on it. Do you think it’s worth it?

I hope this one will help people get their ASM funds in the future. I’ll be sure to post an update whenever I receive news of new campaigns from my RM in the future. So follow me on Facebook and Instagram to get quick and immediate updates.

Free Basic Financial Plan for Malaysians

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Filed Under: Dividends, FI/RE, Financial Independence, Financial Planning, Fixed Deposits, Savings Accounts etc, Investment 23

I’ve gotten so many questions from all of you seeking financial guidance that I’ve decided to once and for all to come up with a simple financial plan (a guide if you will) for all to use.  

We’ll begin with the basics first, getting yourself out of debt, saving up, and then investing that money for passive income.

The Goal

The final goal of this plan here is for everyone to have an investment portfolio that generates sufficient passive income to sustain your lifestyle.

What is your Networth

Use a paper or Microsoft Excel and draw up your Balance Sheet. You’ll have your assets listed in one column and your liabilities in the other.

I’ve got a simple template set up for everyone to use here. Add or remove necessary items. The download link for the Financial Plan excel sheet is below.

Personal-Balance-SheetDownload

1. Budgeting and Saving

First and foremost, you’ll need to have capital. For that regular, periodic investing. And also, for the opportunities that appear once (or twice) in your lifetime. This is why a financial plan is important.

Acquiring capital would mean you need a surplus in your monthly budget. Now, there are tons of budgeting templates out there on the interwebs so I’m not going to walk you through this.

I will, however, tell you that the most important aspect of budgeting is to make it into a healthy habit. Keep at it for a time and you’ll thank yourself 50 years down the road.

Savings – I want you to have at least a 20% savings rate. The higher the better, in fact, try for 50% of your take-home salary. You’ll invest more during your early years and let the magic of compounding take over sooner.

2. Your Emergency Fund

After you’re done consolidating and paying off your debts, you’ll have a nice surplus in your budget and savings every month.

The next step would be to start building up what we call your Emergency Fund. This is the fund where if and when you ever need money for an emergency, you’ll never need to take out that personal loan or worse, from loan sharks.

An example – medical bills, or if your phone got stolen etc.

How much should you have you ask? Some sites will tell you 3 months of your expenses. I say at least 6 months, go 12 months if you’re the risk-averse kind.

I typically keep my emergency funds in Fixed Deposits (‘FDs’). Now, you may need to liquidate this cash immediately, so put it up in one-month FDs. You can learn more about emergency funds and how to get an “FD Ladder” going here.

An emergency fund is a crucial part of your overall financial plan.

3.1 Investing

You’ve got a kick-ass budget going on, your behind is covered by your emergency fund, now let’s talk investing.

As you all know, I invest heavily in stocks. My portfolio can be found hERE.
Here’s what I do – I continue saving and accumulating my wealth. I then wait for and seize any opportunities that present itself. I try to always have cash on hand.

Of course, you may not want to invest in stocks. And that’s perfectly fine, you should invest in securities you KNOW and you’re comfortable with. Just as long as you INVEST. Don’t leave your money lying around in FDs and whatnot because inflation is gonna take a bite out of it every single day.

The 7 investment options in Malaysia can be found hERE.

Investing your money is essentially making your money work for you. The first few years of your investing will determine the outcome of your financial well-being so invest with care and diligence.

3.2 Building Your Passive Income

For me and hopefully, for you, the goal is to have enough passive income to not have to worry about work. I’ve calculated that to about RM3,000 per month or RM36,000 per year. This is the essence of FI/RE – Financial Independence and Retire Early.

To learn more about FI/RE – click hERE.

There are lots of people and information out there that touts and scream passive income in your face. But when I say passive, I mean the true passive. You receive regular income with little to no effort on your part.

For example, a rental property where you manage it yourself and you’re getting complaints from the tenant every other month is not passive.

Whereas if you let your agent handle every single thing regarding the said property and check-in maybe every quarter with him/her, I’d classify that as passive.

Or you know, just buy Real Estate Investment Trusts (‘REITS’).
Let professional property managers manage your property instead. No worries. Hakuna Matata.

4. Protection

Now I’m including protection into your financial plan because many either overlook this or overprotect and overinsure themselves.

This step should be done simultaneously with Step 3.

Let’s talk insurance. I know I’ll be getting flak from insurance agents for saying this but – You don’t need life insurance. This is my opinion.

What you should focus on right now, is medical insurance. To cover your medical expenses, should you be hospitalized or some critical illness should befall you. That’s all I have and that’s all I need. I can pass on my whole portfolio to my next of kin and dependants upon my demise.

While we’re on the topic, fuck investment-linked insurance. Get a standard, simple one. Don’t let the premiums in your 80s scare you. You’ll invest the money yourself, without paying a fee to the insurance company.

5. Review and Monitor

You finally have everything in order. The final step is a step that is continuous and ongoing. It is for life. And it is for generations to come.

You’ll need to monitor your budget monthly, and make sure your savings increase in tandem with your salary and income.

Your emergency fund will increase as your monthly expenditure goes up.

Your investments and assets AND passive income should always go up, up and UP.

And, your insurance should always be updated to include the latest offerings and cover all illnesses.

I myself go over my finances every month. Part of the reason I started Dividend Magic is to keep track of my investment portfolio as well as to hold myself accountable.

End.

It is my hope that this here Financial Plan would be of help to every single Malaysian. It is a very basic plan, I’ve left out some more advanced features of financial plans but the essentials are all there.

You and you yourself are responsible for your finances.

Remember – Save, Invest and FI/RE.
I’ll leave you one of my favourite quotes by William Shakespeare.

”There is a tide in the affairs of men, Which taken at the flood, leads on to fortune. Omitted, all the voyage of their life is bound in shallows and in miseries. On such a full sea are we now afloat. And we must take the current when it serves, or lose our ventures.”

Now go out there and don’t let them opportunities pass you by.

You’re done with the FI/RE and Savings Series! You can check out article 001 – A Guide to Stock Investment in Malaysia of the Investing Series.

As always, follow my Facebook and Instagram to keep up to date!

Funding Societies – My First Default

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Filed Under: Other Investments, Dividends, Financial Independence, Investment 9

First off, an update on my portfolio’s performance with Funding Societies Malaysia. Annualised returns have gone down from 13% to 9.23%.

A lower figure compared to January but still, a 9.23% return is commendable for an investment.

Mainly due to –
1. A default; and
2. New unutilised capital.

My First Default(s)

It caught me off guard when I first received notice on the default on the issued notes, of which I’ve put in RM300 each into the affected notes.

MBBT-18080032
MBBT-18080033
MBBT-18080034

Being caught off guard like that isn’t always a nice experience but it was mitigated somewhat because I’ve constantly been managing my own expectations and prepping for a few defaults.

Re-adjusting Funding Societies’ Auto-invest Bot

If you’ve noticed, all the notes come from a single issuer or company. So it’s back to the drawing board for me.

I’ve now switched my auto-invest bot settings to have ‘Max Issuer Exposure’ from the previous 25% to a mere 5%. I don’t want to be over-invested in one single issuer.

In the event that a single issuer defaults, my loss exposure will never exceed 5% of my total loan portfolio.

Steps Taken by Funding Societies

It all started on 7 January 2019. The issuer contacted Funding Societies to delay payment. Below will be the notices I received from Funding Societies. In chronological order.

This will be pretty lengthy but it is important you as investors know the step-by-step process taken by Funding Societies.

7 January 2019

Dear Investor, The Issuer has reached out to us to push back the repayment of January 2019 due amount because pending receivables from their client, this will include late interest charges. Tentatively, repayment of January 2019 due will be on 18 January 2019. Thank you for understanding the situation. Team Funding Societies 7/01/2019, 6.20pm

** And thereafter, lengthy amounts of back and forth discussions with the issuer on the settlement. I’ll spare you the details. With the issuer failing to make repayments in March, Funding Societies finally decided to serve a letter of demand.

10 April 2019

Dear Investor, We wish to update that we have served the Letter of Demand as of 8 April 2019. At this stage we continue to be in contact with Issuer through our lawyers to demand for RM 50,000 which due on 31 March 2019, and upcoming RM 150,000 which is due 15 April 2019. As we wait for Issuer response to the Letter of Demand, kindly allow us to update you by 17 April 2019. Team Funding Societies 10 April 2019, 8.30pm

18 April 2019

Dear Investor, We would like to inform you that Note Issuer has made a partial payment of total RM 10,000 and it has been distributed as principle to investors on 16 April 2019. However, the amount made by Issuer is less than what we have requested from the Issuer. We are still in the midst of negotiating the outstanding repayment term with Issuer. As per our last update, the Letter of Demand has been served to the Note Issuer, and the Note Issuer has only made payment of RM 10,000.00 of the promised RM 200,000.00 upon the expiry of the Letter of Demand on 17 April 2019. At the meantime, we are escalating our recovery efforts through legal avenues and are discussing with the appointed panel lawyer on how to approach this matter effectively. You may refer to your email for full update. Kindly allow us until 3 May 2019 to provide you updates on the progress of recovery. We truly appreciate your kind patience and continued support. Team Funding Societies 18 April 2019, 1.25PM

End.

So there you have it. I’ve said there would be defaults and I’m sharing with everyone the first of mine.

There are inherent risks in investing in P2P financing. To mitigate, I am diversifying as much as I can. Putting in small amounts in every note issued.

And now, as I’ve learnt the hard way, not to overexpose myself to one single issuer.

I hope everyone learns from this.

That being said, I am still getting a 9.23% return. So don’t let yourself be discouraged by my defaults.

😀

Sign Up!

If you have not already, you can sign up with Funding Societies hERE.
Alternatively, you may use the code: j1mwa37p
You’ll receive RM50 upon investing your first RM1,000.

Note:
Funding Societies has reduced their referral bonus from RM50 to RM30 effective 1st March 2019.

Using my code and link, you’ll still receive RM50.