Earning 12%
Earning 12%

Earning with a 12% rate of return yearly with Educating Hong Kong Students

1) Purpose       

The purpose of this project is to provide financial education to people in Hong Kong. In this few years, Hong Kong real estate price has been rising so unexpectedly. The average price is almost HK$10,000 per feet², which is USD$1282. Even in Hawaii's average, where is generally more expensive than U.S mainland, it is only $381 per feet² to buy a house. People in Hong Kong are depressed and losing hope in their future. They really need some specific financial skills and knowleadge to help manage their money. 

2) How to fund      

I got to understand what IFA is when I was in a CareerConnect trip in Hong Kong. I have learned a new financial system and how it works. IFA means Independent Financial Advisor. Before an IFA starts working, it first needs to meet with all banks and insurance companies to collect their financing products and make contracts. IFA then will have a finance team to do analysis for the best product in different growing rates. It helps and gives advises to people to know the best way to invest their money without any extra fee. Once we bring a customer to a bank or an insurance company, according to contracts, they would give us a 5% reward of the whole trade. Then, my project will aim to convince people to invest a fund from a company "Value Partners" which people named it "Asia Buffett". Buffett is a well known person in the stock market because of his excellent investment performance. However, this company is called by his name because of their excellent records and performance in their fund products.

A)For example, if one customer is brought to Value Partner with their best product - "Value Fund".

It has an average growing rate of 12% per year. The whole trade that the person will receive in 5 years is:


The whole trade that Value Partner will calculate for IFA's reward would be :

Total investment input = PMT x Months x Years = 3000 x 12 x 5 = 180,000

Total investment input x 5% reward = 180000 x 0.05 = 9,000

Therefore, IFA will receive $9,000 from Value Partner of this customer.

B)One more example, with the same fund product, but different plan and conditions :

The whole trade that Value Partner will calculate for IFA's reward would be :

Total investment input = PMT x Months x Years = 5000 x 12 x 10 = 600,000

Total investment input x 5% reward = 600,000 x 0.05 = 30,000

Therefore, IFA will receive $30,000 from Value Partner of this customer.

If we can bring 1 customer A and 1 cusomter B, we can collect

If we set a goal of 10 customers A in ONE months, we can collect :

9,000 x 10 = 90,000

If we set a goal of 5 customers B in ONE months, we can collect:

30,000x 5 =150,000

In ONE month total, we can collect : 90000 + 150000 = 240,000.00

In ONE year, we can collect : 240000 x 12 = 2,880,000.00  (Estimation)

C)This section is providing the performance record of one of the funds from Value Partners


Fund name : "VP High-Dividend Stocks Fund"

3) What to do with collected funds?   

I am going to split this income into three categories :

1. Contribution to the project: establish a financial course program and link to one of professional financial organizations for certifying

2. Salary

3. Re-invest

This part is optional but very critical, because it can provide a huge saving budget in the future. If not, it goes to the project right away.In the previous estimation, we can collect $ 240,000 monthly. If we use 1 out of 3 of this fund to re-invest in Value Partners with a 10 years plan, we can receive 

This decision will provide instant cash fund to the project because of 5% reward from VP:80000X 12 X 10=9600000

9600000X 0.05=480000

This instant cash in-flow can also contribute to the project directly.

4) Why this project?

1. Generating a large Profit with a small capital input

●All I need at the beginning is:

                 1) Rent a place as an administration office

                 2) Hire a sales team and a financial team

●No products making

2. No extra fee for customers with the most professional suggestion

●Our service is totally free for customers

●Bring great convenience to them because they don't need to go through a lot of different banks, insurance companies and fund companies to compare variety of financial products by themselves, and we have a professional team to do analysis for them.

●Skip extra fee for customers:Banks, and insurance companies are always doing little policy tricks to charge customers extra fee. For example, some insurance companies always have a personal executive to serve customers. They help people to join plans. After a customer has joined a plan, a personal executive would give the customer a call regularly and ask if the customer wants any update information for the plan, such as telling him/her if the price is going up or going down. If the customer says yes, they charge extra fee without customers knowing. It is a little trick and mentions in the plan's contract policy but customers never know.When they do so, no matter how much customers are earning from the financial products, the earnings have gone already.

●However, if customers want to check any update information through us, there is no fee at all

3. Earning in their own saving funds, educating the future generations.

●Hong Kong people especially the youth really need som more financial skills and knowleadge because they are losing hope in their future as the real estate prices are keep increasing. No one is getting married because they can't afford any house.

●At the same time, many people from mainland China are doing all they can to immigrate into Hong Kong. They have occupied a lot of cheaper housing.

●This phenomenon will bring many bad effects in the future:

1) Population ageing : No one gets married, no one gives birth. Lower work force.

2) Economic inequality : the poor stays poor, no way for the middle goes higher, the rich be richer.

3) Losing a whole generation to seek higher education as they see no difference between high school graduate and college graduate. They expect to work their whole lives hard to mortgage a little house.

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