Investment Ideas

Recently, I thought of having a fund called a "Feel Good Factor Fund". The purpose of having this fund is to grow the money to sustain certain lifestyle of mine. Among others, I hope this fund will be able to be a source of car down payment for every 10 year period. Due to wear and tear, I think changing cars every decade is a reasonable time frame. Besides that, the fund also aims to be a source for house renovation when necessary, overseas vacation and children marriage when necessary (I'm forward thinking here).

I'm thinking between these lines for this particular fund:

Fund Name: Feel Good Factor Fund
Start up capital: RM10,000
Objective: To grow the fund to RM100,000 every 10 years.

Since my car is already 3 years old, I will likely be changing to a new car in 7 years time. That will be in 2017. This fund is already 3 years late. To achieve the target amount in 7 years, I would have to grow the fund at 39% per year. For a 10 year period, the fund will need to grow at 26% per annum.

The only way I see this fund can grow at that pace is by investing in the stock market. I have to admit that I'm not a fan of the stock market since I find it very difficult to understand the fundamentals. However, I think this fund is necessary. Some might argue that I should practice delayed gratification. I'm practicing it right now actually. But having a fund which can pamper you once in a while is something reasonable to do after working hard to grow your money. There's nothing wrong with it since I'm not jeopardizing my retirement fund, I'm not taking it from my emergency fund and it's not stopping me from continuing to invest in properties. It is totally a stand alone fund.

Since I don't know much about the stock market, I'm thinking of taking advice from magazines on what stock to pick. I read Personal Money every month and Insiderasia provides their insight on what stocks to look for in each issue. To date, I find their picks to be reasonably wise. At the same time, I will learn more about stock investing. I aim to do the stock trading online since there are many available platforms around. This is a pretty daunting task to me but I wish I will succeed.

Do give me your thoughts on this matter.