Ok thx.. any opinion on this 2 fund?

nope, not recommended..better stick to older funds that have proven itself, PGF, PIITIKAL, PRSF etc

Yea..PITGF is a newly launch fund..however the second fund which is PFSF have been released for a numbers of years already.. and I heard from one of the agent saying that this is the best performing fund so far.. Is that true??

my agent is the type who recommends switching rather than bring out your money and putting it back because he said i can cut losses on the service charge. is that true?

another question, for my epf, when the economy falls, is there any shariah bond fun i can switch to to secure my money?

Your agent is correct.

If U sell/redeem your equity funds, then buy back in later, it'll cost U the 3% service charge later
If U switch, U pay only $25 no matter the $ of switched + if you're a Mutual Gold or better, may also be 0 (depending on how many times U've switched over the year).


FYI - your agent is also getting something out of it. As long as U keep your "loaded" units, your agent gets 0.2% or so yearly from ALL her customers' "loaded" units portfolio.

"Loaded" units = units that U've paid more than 0.25% service charge.

The fees are quite scary for equity and balanced funds :

- Service Charge per unit 5.5% of NAV/unit
- Transfer charge RM25
- Annual mgmt fee 1.5-1.8% p.a. of NAV amount (fees varies across funds)
- Annual Trustee fee 0.06-0.08% or minimum RM 18,000-60,000. (fees varies across funds)

The fees and charges are like >7%, so does that mean a fund have to have at least >7% return to cover all the bloody fees?

On the other hand, Stock Exchange only charge commision and brokerage fee of less than 1%.

This post has been edited by monsta2011: Aug 3 2011, 12:31 PM

make u more confuce,

switching - before 90 days - min RM50 and after 90 days RM25.

mgmt/ trustee fees will be deducted every year from fund NAV.

whatever bloody fees, the fund must be perform well to give better returns for u.

brokerage enter/exit less 1%. - paid to broker.

FM also need to pay the brokerage for buying the stocks for asset allocations. this comes under mgmt fees, if i not mistaken.

Each vehicle has its own pros & cons lor.

Use a spreadsheet and do a head to head calc
eg.
Stocks - to & fro transaction cost is about 1%+
Mutual funds - buying is about 3.6%+ + switching $25

However, simulate it for a few times and increasing quantity of $

U may notice, depending on how much U transact for stocks, that mutual funds may be "cheaper" in the long run. Remember, the equity service charge is once-off. IF U switch it to bonds/MM to lock in profits, and back to equities when equities are low, it's only $25 or free (depending on mutual gold or etc.). Imagine moving $500K using $25 switching fee or $0. Heck, imagine moving $1M or more using $25. How many percent is that ar? Do that a few times and see the transactions' cost difference between stocks and mutual funds


Next, mgt fees, trustee fees, etc.
Say U have $5K to invest
If U put into stocks, cost effectively U can only buy into 1 or max 2 stocks
If U put into equity funds, it straight away diversifies yr $ into 10 or more stocks.

Mind U, i aint saying that mutual funds are silver bullets but it has it's uses, especially for the extreme lower investments (cost effective - try buying stocks directly with $100, see how much the commission, etc. is as a % of the value of the stocks U bought) and extreme higher amount of investments (switching at $0 or $25).

Note - i use both vehicles myself AND to lower my own cost (thus increasing probability of profits), i'm my own agent

Since i had time to kill inbetween meetings, see the attached.
6 transactions/reinvestments using stocks (0.55% per buy/sell assumed) and equity mutual funds (5.5% and $25), at 3 amount of investable $ - $5K, $10K and $50K, assuming 20% net profits each round.


This post has been edited by wongmunkeong: Aug 3 2011, 02:53 PM

Good day !

I would like to know what do you guys think about the PSSF ?
My agent invested my money on to this fund and I've got no idea about the return rate and the potential of it.
Feedback are always welcome. Thank you.

Firstly, no crystal balls here ar
Secondly, yup - i'm into PSSF and PAGF and will continue for at least 3 years, via EPF A/C1 --> Mutual Funds.

Reason:
I'm leveraging on their volatility and general growth - as i'm using value averaging to invest my EPF A/C1, not dollar cost averaging.

I've also done so for PIX when i started PSSF (same time and same methodology - value averaging), and i've noticed that my returns were about 10% more for PSSF vs PIX.
Eg. PIX transaction date 1 year ago makes me (paper profit) 20% but PSSF on the same transaction date makes me 22%+. Checkout the snapshot attached - the second column = buy dates.
Note that i've 2 buys on a same date for each fund due to different "investment programs"/allocation running

Your mileage may vary depending on why U investing (time horizon, flux, etc.) and how you're investing (dca, lump sum, value averaging, trend) - thus i said no crystal balls here



This post has been edited by wongmunkeong: Aug 3 2011, 02:25 PM

Wow yea thanks for that excel calculation. It clarifies a lot! Haha seems like the fees and charges associated with the mutual funds are cheaper in the long run .

Umm.. if you read in the annual report of the mutual funds you will see that, the trading/administrative costs are already charged to you. So in mutual funds, those with heavy turnover (ie. >1), you can expect to add another 2% as brokerage fees.

That is why I often select funds which have turnover not more than 2. otherwise the manager is trading and not investing for you.

Trading costs are not transparent, but it is better to ensure that the fund have policy of not accepting soft commissions. otherwise the trading costs will be relatively higher.

hehheh Bro Gark, you're spot on.

i not so detailed as U lor coz one year the fund low turn over, next year can be higher, same or lower. Too much details to bother me in the long run. yes yes, i'm a lazy optimizer.

Salute!

Mind if I ask if turnover = management fee? Sorry I'm a beginner

Hi,

I'm new in mutual fund and thinking of invest via 'EPF Investment Scheme Trust Fund'... any guru can give some direction?

Thinking of choosing the 'balanced fund', there are two of them... 'Public Balanced - PBF' & 'PB Balanced - PBBF', what's the different between this two funds?

Any better fund to invest via EPF scheme?

Thanks.

ur age?
why u choose balanced fund?

Balanced fund - 60% in equity and 40% in bond.

PBF - public series fund
PBBF - Public bank seires fund.

both manage by PM.

click here for EPF SCHEME.

if u not yet hv any agents. PM me.

I'm quite old... but I'm new in unit trust... and I am reading your blog now

balanced fund still better for u. if u after 55 yrs old.. better go for BOND fund. more save than balanced fund and of cource diff in returns.

best of luck.
anything email me at kparam77@yahoo.com.

i ave question: how i want to sell UT fund online?
i ady ave online acc but dont know how to do

u already old still wan start invest UT?

u better take ur hard earn money go spend.

later u regret kerja but dont have time to spent ur hard earn money