OD way to ASB investment?

I was just reading something about investing in ASB the other day when another topic somehow distract me from my reading. While it’s still discusses about investing in ASB, but it touches on a topic that i don’t already know yet. So far, i’ve known the few ways you can make money investing in ASB - hard-saving your own money, or take loan to invest in ASB. But using overdraft, or OD in short, to invest in ASB - now that’s something new that i haven’t really heard about.

The premise is simple - you take money out of your OD account at about 6%/annum interest, put in ASB and earn something like 8%/year dividend. While i don’t really have the details yet (still working out the budgeting and planning on this), i saw how the calculations was made and i must say that i’m kinda impressed.

And of course, there’s another school of scholars saying that Muslims shouldn’t use OD to invest, or rather, not even take any loans at all for ASB. For them, it’s a sin. Like i care. Let me find out more about this OD thing and see if i can come up with something :)

February 17, 2008 | Filed Under ASB 

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Comments

2 Responses to “OD way to ASB investment?”

  1. ghorl on February 17th, 2008 11:22 pm

    Why can’t non-Malays, especially poor ones, have access to ASB? That’s racism, and social inequality, isn’t it?

    And also why all the super-rich Malays can still have access to ASB when they don’t need it?

    And why is ASB’s dividends higher than ASN? The managers running ASN’s investments are crappier, or just forced to be racists?

  2. ashotiwoth on February 18th, 2008 1:05 pm

    ghorl:
    firstly, calm down.

    secondly, read what ASB means - Amanah Saham Bumiputera.

    Thirdly, the non-Bumi (not non-Malays) have access to ASM (Amanah Saham Malaysia), which, pay quite well (although not as good as ASB).

    Fourthly, Malays are Bumi, and it didn’t matter whether they are rich or poor - they can invest in ASB. There’s always a limit of investment of RM300k/account, and 1 person can only have 1 ASb account.

    Fifthly, ASN is a free-for-all trust fund, where the price changes everyday, like your usual stock market. ASB is a kinda fixed & safe trust fund.

    Although i don’t really agree on your racist remarks, but i allow your comment anyway. I may be wrong in some of my response above, but i wrote based on what i read in the prospectuses available.

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