There are many investment out there which are deceiving, but they they do it in a legal way of wording it, complaining to SC will not yield results. For example FD campaigns promoting 2.88%, 3.88% and 4.88% interest rate, but it is actually for one month only. The advert don't tell you, until you go to the details and sign the agreement, when you re-calcuate you find there is a minor difference only. Or certain savings insurance which advertise 12% cash back, then if you actually calculate it over the years, you get less than FD. It is the same with the UT industry, only it is hidden in the financial report. If you can't/won't/don't read the financial details  and do your due dilligence you will be 'decieved'. These products do prey on those who have low financial knowledge. 

You are very wrong, capital gains in Malaysia is tax free, but dividend are taxed. If you sell the unit trust you do not need to pay tax, but if it is declared as dividend then it is taxed. Except for ASNB dividends which is also tax free. 

In Singapore capital gains and dividend is also tax free. 

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Added on April 2, 2011, 2:42 pm

There are many investment out there which are deceiving, but they they do it in a legal way of wording it, complaining to SC will not yield results. For example FD campaigns promoting 2.88%, 3.88% and 4.88% interest rate, but it is actually for one month only. The advert don't tell you, until you go to the details and sign the agreement, when you re-calcuate you find there is a minor difference only. Or certain savings insurance which advertise 12% cash back, then if you actually calculate it over the years, you get less than FD. It is the same with the UT industry, only it is hidden in the financial report. If you can't/won't/don't read the financial details  and do your due dilligence you will be 'decieved'. These products do prey on those who have low financial knowledge. 

FYI i am not trying to diss PM, I am holding quite a large sum in PM funds as well (six figures worth), but investors need to be educated lest they fall to marketing gimmicks and tricks.  All these applies to most of the UT sold in Malaysia

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Added on April 2, 2011, 2:48 pm

Yes, the distribution need to be accounted and not only the NAV. Basically I have all of the info in excel, so each time after distribution and reinvestment I have to go and update the holdings. Waste of time.... 

Be careful when using the PM charts as I have found out, they are based on NAV to NAV charts and not on Bid to NAV charts. So the initial 5.5% you pay is not reflected in the charts and over time the 5.5% fees will be compounded and show a big difference. Anyway i do occasionally use them for quick info but the results in my excel sheet shows the actual value. 

Be careful when using the PM charts as I have found out, they are based on NAV to NAV charts and not on Bid to NAV charts. So the initial 5.5% you pay is not reflected in the charts and over time the 5.5% fees will be compounded and show a big difference. Anyway i do occasionally use them for quick info but the results in my excel sheet shows the actual value. 

Every promotions, there will always be terms & conditions lo... If you were the boss, would you just give free things to people without asking them to buy your products in return?? Give & Take, if you wan the 5.x%, then you put a sum of money with the condition that you can't withdraw the money within a certain period of time to get 5% interest...

Yes, I am aware the initial charges are not included. It is not possible to show a time-dependant variable like NAV, and a personal-dependent variable like entry-date all on the same chart. Eg,

Invester A) entered 5 years ago, the effective initial charge per annum = 5.5% / 5 = 1.1%
Investor B) entered 2 years ago, the effective initial charge per annum = 5.5% / 2 = 2.75%

So if you are looking at the 1-year chart, investor A) would need to deduct 1.1%, and investor B) would need to deduct 2.75%.

The chart cannot know which investor you are, so each investor would have to do their own calculations.

Folks,

pay the 5.5% (this is the renumeration) to the fund manager for looking after the money.

If you are unwilling to fork out that much, then

be an agent yourself and buy at agent price or (2.75%)

use KWSP money (initial charge cap'ed at 3%)

or if you are an UTC then you are paying 1%.

Is that music to your ear?

Xuzen

Ah.. you cannot divide the 5.5% charges like that, remember the 5.5% is able to compound as well..... basically they can make a Bid-NAV chart like many other (foreign) UT if they want to, but they will show lower gains. Let put in simple terms... and assume no dividend for simple computation. 

For simplicity's sake, I did not include compounding into my examples. But no doubt, the effect is there.

But my points still stand - it not meaningful to include the initial charges into the chart because it has a different effect depending on entry-date. For eg, the effect of a fixed one-off 5.5% charge on someone who have invested for the last 10 years is different from someone who only entered a year ago and withdrew yesterday. A single chart cannot show both cases.

Hmm how to convince you ah? The are Bid-Nav and Nav-Nav data/graphs in most foreign UT, only Malaysia don't require the UT to publish them.. I have attached a factsheet one of my UT holdings here for you to see, so you can make your own conclusions.

If you can see the difference... cumulative difference between Nav-Nav and Bid-Nav of 20% since inception (1997-2011)...

 factsheet370091.pdf ( 134.55k ) Number of downloads: 59

Folks,

pay the 5.5% (this is the renumeration) to the fund manager for looking after the money.

If you are unwilling to fork out that much, then

be an agent yourself and buy at agent price or (2.75%)

use KWSP money (initial charge cap'ed at 3%)

or if you are an UTC then you are paying 1%.

Is that music to your ear?

Xuzen

Your are missing the point. I'm not even talking about the NAV-NAV vs BID-NAV.

Let's take the 1-year BID-NAV chart for eg. If you entered a year ago, and is now looking at the 1-year BID-NAV chart, the chart is an accurate reflection of your current position.

Whereas I entered 10 years ago, and am now looking at the 1-year BID-NAV chart. Why should the BID price 1 year ago apply to me? That's not my entry price.

Well it's your choice on what you believe, and I am fine with it. Just trying to tell you that the two graphs is not the same no matter when you started buying.  No point arguing.

Ok, i just need to know some facts. Any investor here made net profit from the funds? If yes, how much? Percentage, years you took and which fund...

I've started 6 months ago, monthly investment into pbgf, indon, n china funds...So far losing money, doubting its future...as now already on the 'high' side...That's what ppl say la...

Need some advice...

My investor makes a net 10% return over half year of investment in PEF.

Good job. so you're an agent? Any advice for me? Maintain the funds or switch?