In order to appreciate “Why MPV is a stable investment” to consumers, like us, we must first understand what “stable investment” means in layman terms …….
To many individuals who have no experience in any financial investment tools, “Investment” might sound like a big word or complicated to work with…. But in simple term… “Investment” is just an action or process of taking out our money to put into a resource or products or services in return for profits.
QUESTION IS:
i) What kind of actions are needed to make profit from investment?
In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. At the same time, in financial sense, an investment is considered as a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.
In both the economic and financial sense of investment, there are definite risks involved when we put our money into either purchased of goods or monetary assets. Hence, it is how much risks are we willing to manage with our investment.
Technically, there are different risks and returns in all financial savings and investments action. In general, we can put ourselves into two categories when comes to Risk Management. Based on economics and finance perspective, the first type of category is Risk Adverse. Risk aversion is the behaviour of humans, who, when exposed to uncertainty, attempt to lower that uncertainty. The other category is Risk Taker. Risk Taking is the behaviour of an individual, who is willing to do things that involve danger or risk in order to achieve an economic or financial goal.
ii) What type of investments to look at in terms of generating profits?
Once we determine the Risk categories we are in - Risk Adverse or Risk Taker. We can explore the four different types of investment with distinct characteristics, risks and benefits to generate profits. Once we are familiar with the 4 different types of assets investment, we can begin to think about putting together a mix that would fit with our personal circumstances and risk tolerance.
Growth Investments:
These are more suitable for long term investors that are willing and able to withstand market ups and downs. Growth investing is a stock-buying strategy that focuses on companies expected to grow at an above-average rate compared to their industry or the market. ... Ultimately, growth investors try to increase their wealth through long- or short-term capital appreciation, and these can come in two forms:-
I) Shares - Shares are considered a growth investment as they can help grow the value of your original investment over the medium to long term. If you own shares, you may also receive income from dividends, which are effectively a portion of a company’s profit paid out to its shareholders. Of course, the value of shares may also fall below the price you pay for them. Prices can be volatile from day to day and shares are generally best suited to long term investors, who are comfortable withstanding these ups and downs. Also known as equities, shares have historically delivered higher returns than other assets, shares are considered one of the riskiest types of investment.
II) Property - Property is also considered as a growth investment because the price of houses and other properties can rise substantially over a medium to long term period. However, just like shares, property can also fall in value and carries the risk of losses. Unless it has value terms such as “FREEHOLD” Title status. It is possible to invest directly by buying a property but also indirectly, through a property investment fund.
Defensive investments:
These are more focused on consistently generating income, rather than growth, and are considered lower risk than growth investments.
III) Cash - Cash investments include everyday bank accounts, high interest savings accounts and term deposits. They typically carry the lowest potential returns of all the investment types. While they offer no chance of capital growth, they can deliver regular income and can play an important role in protecting wealth and reducing risk in an investment portfolio.
IV) Fixed interest - The best known type of fixed interest investments are bonds, which are essentially when governments or companies borrow money from investors and pay them a rate of interest in return. Bonds are also considered as a defensive investment, because they generally offer lower potential returns and lower levels of risk than shares or property. They can also be sold relatively quickly, like cash, although it’s important to note that they are not without the risk of capital losses.
Next, we need to establish what it means to be “Stable” like a rock. In general, being “Stable” means firm, solid, secure, strong, not likely to give way or overturn. Hence, to have an investment that is “Stable” means it is firm, solid, secure and strong for investors putting their money in.
“Why MPV is a Stable Investment”
MPV is a stable investment portfolio means that it is insured to protect the investor against a decline in yield or a loss of capital. The owner of a stable investment will continue to receive the agreed-upon interest payments regardless of the state of the economy.
We all seen above that Property is considered as “GROWTH” Investment. Which means to say, in long term, it will grow in value. Besides that, MPV is considered as “Stable Investment” based on the following success criteria -
ACCCESSIBILITY –This is critical in terms of communities being able to access into the program, the pricing, the policies governing the program. In any investment platform that is easily accessible by communities, it is deemed to be stable because the backend support is ready
ASSETS BACKED – In order for any form of investments to be “Stable” the assets must be secured, strong and solid. For MPV, the real asset backed is MPV Freehold Properties.
BLOCKCHAIN “SMART CONTRACT” – This is one of the critical success factor as Stable Investment for MPV. With “Smart Contract” written on Blockchain Technology, it is transparent and immutable on the ledger and legally binding. Anything that is legally binding brings across certainty on the platform.
EXCHANGEABLE FOR PHYSICAL ASSETS - Based on above Blockchain “Smart Contract”, all existing allocated Freehold Property Units are assigned with specific total tokens quantity. Any individuals who has acquired the required specific total tokens quantity, they can immediately exchange for the physical assets. Literally , you shift in with just your luggage.
LOWER PRICE VOLATILITY – Linking from the above critical success factors for Stable Investment, being in Real Estate industry, the volatility of price movement is at its minimal. This is why its call a GROWTH Investment portfolio.
PRICE TRANSPARENCY – One of the beauties of Blockchain is its transparency. This is more evident in terms of crypto-currency (MPV TOKEN). The authorized exchange platforms for MPV is fully authorized and legally functional issued by the country’s government. Hence, there are no unintentional or ill-motivated actions in terms of pricing in this aspect.
IN CONCLUSION
Stability is extremely important for any successful investor. For most people this means living with our means or not spending more than we earn. Many investors like the idea of an investment that doesn't lose value and provides a solid return. Hence, MPV Stable Investment is designed to do exactly that, helping you preserve capital while generating returns that are consistent with what you can get from your investments. A good investment is one that can make a profit. But not all investments are appropriate for every investor. Depending on what we’re looking for, a good investment comes with:
Easy to buy or sell – MPV focuses on Freehold Property Projects because Freehold Title is Easy to Buy or Sell due to demand.
In demand – Only Freehold Title Deeds commands Demand in the market.
Predictable outcome or guaranteed return – Investment into Tokenization of MPV gives a guaranteed return of 9% per annum. This is almost like a Virtual Rental yield for MPV investors.
Lastly, MPV is a “Stable Investment” as it focuses on basic in Real Estate - “location, location, location” which well reflects that indeed a well-situated liveable city real estate is always in demand. As a result, demand for freehold properties do keep prices high and typically pushes them higher over time, so finding an available in-demand property is a good first step. Hence, making MPV a stable investment and do provide a bottom line growth into the future.
written by: Stervey Lim
