Grow Your Retirement Income$: Volatility Classification

Monday, July 18, 2011

Volatility Classification

Volatility Classification (VC) ranks all qualified funds by their VF in an ascending order which is the evenly divided into 5 VC as follows:

a) 1st 20% of all Fund with lowest VF - Very Low
b) Next 20% -Low

c) Next 20% -Moderate

d) Next 20% -High

e) Final 20% - Very High

Funds with high or low VF & VC in the past do not necessarily indicate that they will register the same volatities in future. The VF and VC are not meant to be the sole criteria in selecting funds for your portfolio, other factors need to be considered too. Nor are they to be used as a comprehensive measure in determining consistency of return/performance of the fund.

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90% of EPF contributors have less than RM100K in their account.
83% used their retirement savings when the need arose before reaching retirement.
73% of Malaysians do not seek professional financial advice when planning their retirement.
70% of retirees use up their EPF money within 3 years of retiring.
More than 50% of Malaysians have not given thought to how much they need to retire comfortably.
41% of Malaysians do not plan on building a seperate retirement fund. Of those who do, 77% place their savings that provide low yield
39% intend to work beyond retirement age to supplement their income.
Only 35% of Malaysians fully confident that combination of EPF and personal savings will see them through retirement.
Medical cost inflation can run as high as 15% a year.
Inflation rate of 6% p.a. will increase the cost of 3 meals from RM20 to RM 64 in 20 years.

From various sources including "The Star", "SIDC".