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ChopChaeJoe
Joined: 05 Mar 2006
Location: Seoul
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 Posted: Mon Jan 15, 2007 3:21 am Post subject: Casual investing |
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I wantd to start paying into a Korean index fund, and everything is set to go, but then my investment guy said that I have to make the first payment in cash and the following ones would be deducted from my bank account.
It seems a bit -- shady -- maybe is the word I'm looking for.
This is a major company. can this be right? In America, dealing in cash is the realm of drug dealers and CIA operatives, ahh but I repeat myself. |
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Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
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| Posted: Mon Jan 15, 2007 4:39 am Post subject: |
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| Just be sure your broker knows the difference between 'buy' and 'sell'. Mine didn't. |
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Thunndarr
Joined: 30 Sep 2003
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| Posted: Mon Jan 15, 2007 4:45 am Post subject: Re: Casual investing |
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| ChopChaeJoe wrote: |
I wantd to start paying into a Korean index fund, and everything is set to go, but then my investment guy said that I have to make the first payment in cash and the following ones would be deducted from my bank account.
It seems a bit -- shady -- maybe is the word I'm looking for.
This is a major company. can this be right? In America, dealing in cash is the realm of drug dealers and CIA operatives, ahh but I repeat myself. |
Interesting though perhaps pointless true story: A doctor I was teaching and I were talking about investments we'd had one day. He related a story about the $30,000 dollars he'd recently lost with his broker. It turns out that during the time period he'd been in the market, the market index had doubled, but his principal had shrunk to nothing. How? Why? His broker made so many trades (and got so much commission off those trades) that the broker actually made a profit equal to the original principal while the doctor lost his entire investment. If the broker had just picked something safe and let the money sit, he'd have more than likely doubled his money. |
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ChopChaeJoe
Joined: 05 Mar 2006
Location: Seoul
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| Posted: Mon Jan 15, 2007 4:48 am Post subject: |
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So the upfront cash thing is no biggie?
I don't plan to mess with the investment once it gets rolling. |
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Thunndarr
Joined: 30 Sep 2003
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| Posted: Mon Jan 15, 2007 4:58 am Post subject: |
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| ChopChaeJoe wrote: |
So the upfront cash thing is no biggie?
I don't plan to mess with the investment once it gets rolling. |
Is there a reason you need a Korea index fund? There are plenty of funds in the U.S. (assuming you're from there) that give you exposure to foreign markets. |
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ChopChaeJoe
Joined: 05 Mar 2006
Location: Seoul
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| Posted: Mon Jan 15, 2007 5:02 am Post subject: |
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| I'm here, working in Korea, making and spending my mony here, it's my econoy after all, why not invest in it? |
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Thunndarr
Joined: 30 Sep 2003
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| Posted: Mon Jan 15, 2007 5:08 am Post subject: |
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| ChopChaeJoe wrote: |
| I'm here, working in Korea, making and spending my mony here, it's my econoy after all, why not invest in it? |
Well number one, your question was whether the cash up front thing was shady or not. If you were investing in, say, Vanguard, you wouldn't worry about it at all.
Other than that, the issue I personally have with investing in Korea is that it is too difficult for me to be well-informed about what's going on. Another issue is that since it's a smaller market it is more subject to volatility which can be good or bad, I suppose. Other than that, I don't have anything against investing here, but, as I said, there are other ways to get market exposure to Korea if you are so inclined. |
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ChopChaeJoe
Joined: 05 Mar 2006
Location: Seoul
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| Posted: Mon Jan 15, 2007 5:37 am Post subject: |
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| Um, thanks for the help, I guess. |
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Trumpcard
Joined: 24 Feb 2006
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| Posted: Mon Jan 15, 2007 5:41 am Post subject: |
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| but why a Korea Index Fund? Is the Korean market expected to do well? Is the Korean economy expected to pick up? gold, silver and nickel are the go right now! |
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ChuckECheese
Joined: 20 Jul 2006
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| Posted: Mon Jan 15, 2007 5:43 am Post subject: |
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| Diversify |
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Return Jones
Joined: 06 Feb 2004
Location: I will see you in far-off places
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| Posted: Mon Jan 15, 2007 5:56 am Post subject: |
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| ChopChaeJoe wrote: |
| I'm here, working in Korea, making and spending my mony here, it's my econoy after all, why not invest in it? |
Because it's dodgy, my friend. It's dodgy just like dropping big cheonsae on an apartment. Maybe you'll get it back, maybe you won't. Being a foreigner, odds are certainly not in your favour. |
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Hanson
Joined: 20 Oct 2004
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| Posted: Mon Jan 15, 2007 5:58 am Post subject: |
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| Return Jones wrote: |
| ChopChaeJoe wrote: |
| I'm here, working in Korea, making and spending my mony here, it's my econoy after all, why not invest in it? |
Because it's dodgy, my friend. It's dodgy just like dropping big cheonsae on an apartment. Maybe you'll get it back, maybe you won't. Being a foreigner, odds are certainly not in your favour. |
Sorry, but that's crap. |
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bobbyhanlon
Joined: 09 Nov 2003
Location: 서울
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| Posted: Mon Jan 15, 2007 9:25 am Post subject: |
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there's nothing dodgy about it. if you feel like doing it, just do it.
as for the merits of investing in the korean stock market, thats not really something 98% of people on this board are qualified to talk about (and i'm not saying i'm one of the 2%, by the way). |
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4 months left
Joined: 07 Feb 2003
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| Posted: Mon Jan 15, 2007 3:42 pm Post subject: |
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Just because you live here doesn't mean you only need to invest here, ie. all eggs in one basket. Here is the ETF traded on the NYSE:
iShares MSCI South Korea Index (EWY)
http://finance.yahoo.com/q/bc?s=EWY&t=1y&l=on&z=m&q=l&c=
I'm a little confused, "first payment in cash" do you want to pay by private lessons  ?? But seriously cash seems reasonable. You have to check into fees, make sure the advisor is not taking a full service fee, perhaps on the first transaction if he advised you but if you buy the ETF through a discount broker costs should be minimal.
FUND SUMMARY
The investment seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the South Korean markets, as measured by the MSCI South Korea index. The fund uses a representative sampling strategy to try to track the index. The index consists of stocks traded primarily on the South Korean Stock Exchange. It is nondiversified.
TOP 10 HOLDINGS ( 51.92% OF TOTAL ASSETS)
Company % Assets
Hyundai Heavy Industries 1.87
Hyundai Motor 3.16
Kookmin Bank 7.19
Korea Electric Power 2.96
KT&G 2.05
POSCO 6.31
Samsung Electronics 20.67
Shinhan Financial Grp 2.97
Shinsegae 2.58
SK 2.16 |
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