Yes, I meant diversify in different assets, currently in property, commodity and funds. At least this are the ones that I've identified which do not require 24/7 monitoring. Any other ones I've left out?

Self learning - continuously, which i'm sure U are doing since you're here

keep some in bank as emergency fund. don't put all the money in place.

20% in FD
50% stock
30% in UT.

or it depends how u plan with ur risk tolerance VS urs age factor.

.

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Added on August 8, 2011, 7:17 pmI believe I have enough cash for emergency use, ya? and like you said, put 50% which is ard 35k into investment first and see the trend.. or I should start from low risk investment first like bond? by the way bond is not subject to 5.5% commission like the mutual fund right? I am prepared to lock my money for long term in fact i have that cash sitting in FD for 2 yrs already but it wasnt growing fast

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Added on August 8, 2011, 7:20 pmmy risk tolerance is moderate maybe ... im still young in my 20s.. but i only know how to safe (i safe like a mad cow) not how to invest

This post has been edited by monsta2011: Aug 8 2011, 07:20 PM

RM70k..depend on your age. Active or passive investor?

if early 20s and no time to do research on stocks, convert it into UT form then. Let the managers/analysts do the job.

Depend on your monthly saving also. If I were you, i dont mind to put a little heavier on equity.
60% equity 40% bond.

u r just in 20's. and u r a moderate risk tolerance person.

BOND = conservative = EPF.

i believe u hv EPF.

than u can put cash in BOND lesser than others. well my suggestion only.

my EPF = MY bond at the moments. plan to transfer some equity funds to BOND when I reach 50 to 55 yrs old. now production time for growing my money in equity funds. 50%/50% = moderate/aggressive.

quite bad performance today ...
all red colour ... except bond fund ...

US debt crisis really affect our stock market ....

That is expected. Bond market usually performs opposite to equity market.

Thanks. I've been doing a lot of reading/research these past two months and would love to follow the footsteps of some of the sifus here. I was told in my late teen that i need to save some money before i can start investing. Now that I have save some (probably not enough) I plan to invest but am hesitating a lot.

Anyway no pain no gain....

This post has been edited by monsta2011: Aug 8 2011, 08:40 PM

Is it a good time to buy any REIT stock now?

may i know what is PM REIT ? or you guys talking about something else

If i may suggest:
Draw up a simple and cohesive plan first.
Then do & track.
Then revisit your plans VS yr tracking results.
Tweak yr plans and do, & track
Rinse & repeat.

BTW, $70K is nothing to sneeze at. Congrats!

Personally, if i've saved up a lump sum like that and assuming all else is covered (buffer fund, insurance, etc.), i would:
a. Filter mutual equity funds to go into

b. Select 2 to 3 very different funds, with good returns for 10yrs (if possible), 5yrs & 3yrs
eg. PFES, PRSEC & PFEPRF if U want to use cash for foreign mixed which i do.
EPF is used for local mix like PIX, PSSF & PAGF

c. Take 50% of the sum, say $30K (i'm just example-ing here k, not exactly 50% of your $70k. Momma's boy can count ).
This $30K, i'd apportion to these 3 funds, eg. $10K each
Then, each fund, i'd stick to doing it for at least 3 years, thus that's $3,333.33 each year
I'd do the investment every 3 months (qtr), thus, that's $1,111.11 each period
Then comes the hard part - to do this using DCA or VCA or combination (TwinVest)? heheh - knowing me, i'd do TwinVest

See how it works out? That's JUST THE ENTRY PLAN example.
U can leave yr $ allocated for these in cash OR put into Bond fund and then switch the value as needed every quarter.

BTW, the remainder i'll leave in Bond fund until i figure out what to do with it - most probably learn about REITs and then go after that It's also stock market but much easier to understand and buy value.



EXIT PLAN example:
When will i take profit or cut loss for mutual funds?
1. Take /lock in profits
I'd do this when there's super abnormal profits - eg. when i know statistically that returns on average for equity funds are about 7%pa to 10%pa, if any of my transaction hits like 20%pa to 25%pa OR like 50% to 60% in less than 1 year, i'd take some $ off the table

2. How much to take / lock-in profits?
All? 50%? 66.66%?
Me - i'd take the cost + expected profits off the table (switch back to Bond fund and await to be reused)
eg. cost +10%pa, and leave the abnormal profits to keep running if it keeps going up
at least i've gotten my expectations already AND those $ is still earning me % in Bond Funds

3. Cut loss
er.. i wont do this if i'm using Value Averaging or TwinVest. The risk is already mitigated (not entirely though) by putting in less $ when prices are high, thus unused capital is available to buy more when prices go down.


Whew.. sorry ar, long winded stuff. Just wanted to share. MOIS - i think i've answered your Q here too

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Added on August 8, 2011, 9:08 pmMost probably REITs as in stock market's REITs. Real Estate Investment Trusts like BSDREIT, TWRREIT, AXIS, SUNREIT, etc.

PM's closest fund i think to a REITs fund is PFEPRF - Pub Far East Properties & Resorts Fund. Pls correct me if i'm mistaken / lalaland

This post has been edited by wongmunkeong: Aug 8 2011, 09:11 PM

This the the hard part to understand bro Twinvest. I think few of us know how it works exactly. From general, i only know it involves 25% DCA and 75% VCA.

Wow! this is what I am looking for... 'A ENTRY PLAN', the hardest part to understand is the 'TwinVest'... like a secret weapon used by sifu in the last moment of a kungfu show

Btw, during the every 3 months investment, do you recommend 'switch' to different funds or just apply DCA or VCA in bull/bear run? PIX (Public Index Fund), PSSF (Public Sector Select Fund) & PAGF (Public Aggressive Growth Fund)... all these funds are equity/aggressive funds (high equity ration/highr risk/high return)?

Thanks.

This post has been edited by lowyat2011: Aug 8 2011, 09:25 PM

Thank you thank you.
So is it recommended to pump in money periodically? can I just put in i.e. 10k from the start and let it grow for years or is that a stupid move?

Brudder - if U are around Klang Valley, i can show & tell U easily. Other than that, go buy that book lar - i bluff U for what, no commission or royalty from that book

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Added on August 8, 2011, 10:02 pmHeheh - It's definitely no secret and no... (firstly i'm always a student, not seafood) i dont use it at the last moment. The trick is to CONSISTENTLY use it or work the plan Last moment use it and win = pure dumb luck OR an illegal / dirty move

Hm.. i'm a bit unclear about yr Q. Perhaps i clarify the 3mths yar

1. IF my ammo is in cash, then i use PM Online to inject the cash, amount = as advised by the formulas of VCA/TwinVest/DCA.

2. IF i stored my ammo in Bond Funds, i'd then need an extra step to calculate the units = amount i need to inject. Again, amount = as advised by the formulas of VCA/TwinVest/DCA.

3. Whether BULL or BEAR or side-ways market, the thing is to work the plan, track & manage (ie. tweak the plan IF necessary). Look, in BULL market as it gets higher and higher, VCA & TwinVest puts in lower and lower amounts of $, thus saving me from a correction / return to mean. Notice SHTF usually when market have hit highs?


Side Q: Why 3 months period or 6 months period?
Simple - funds hardly move enough every month, thus why bother? Not much difference and if U do it too often/fast, U lose the effect of Value averaging.
eg. Think of it this way - would U do Asset Re-balancing EVERY month? Or Every Year?

hhehe - things can get more complicate for Asset Re-balancing if i added - every month check only and if more than XX% unbalanced, then only rebalance - okok that's for another day yar.

And you're welcome - thanks for absorbing and clarifying

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Added on August 8, 2011, 10:10 pmDifferent strokes for different folks. BTW, what's your exit plans? Sitting on it until....? Always have exit plans else U will get into a bind.
eg. Some ppl invest blindly overseas (FX, Stocks, etc.) making good $. Yeah great
How to bring back ar? Or moving there?
What if something happens to U, how will your inheritors get to your assets/$? Wei - fly to UK/US, stay there for a few days/weeks to clear things up using THEIR legal, etc. Cheap hor?


My approach, IMHO is to control risk & yet optimize profits.
However, if U do as the ideas i've presented, U may come & kill me IF the market went shooting sky high. Thus IF U put in lump sum $10K, you'd do much MUCH better vs TwinVest / VCA / DCA periodically.

a. I'd do lump sum 33% only if the market has ALREADY crashed at least 20%+.

b. Thus, i got 2/3 capital unused left to average down (this isn't trading yar, averaging down is ok for diversified stuff like funds, and good funds only) IF it continues south to 40%+ down like end 2008, i'd put another 33%

c. and IF it goes south like 1997/1998 i've got another 33% left to grab it all and sit on them till 3 to 5 years, then.. FAT TATT man!


BTW, i'm not preaching both methods - it's in my entry plans for investments (mutual funds + stocks + REITs + Properties).
50% cold hard logic, no fear, no greed (TwinVest with mutual funds)
50% value oriented (stocks, REITs, Properties)
Nope - not doing FOREX or Futures or Options yet. Haven't even mastered one type of stocks trading, better not hehe. Own self know own limitations and "stretchability".

This post has been edited by wongmunkeong: Aug 8 2011, 10:15 PM

Depend bro. But to grow 10k into 20k which is 100% gain need some brains and times. All you need to know is how things work. Just dont spend too much times on it. At the end of the day, you might realise the times you used to learn advance investing skills can be used for other purposes. Think how to increase income first, then proceed slowly into investing.

Hm.. IMHO, beware of what U wish for IF U dont have any exit plans.
eg. U chase a career and find that U've "gotten there".
However, other than $ and perks, U also have lots of stress, too little time for yrself or yr loved ones. Hey, i'm still assuming your health is still good even with all that stress.

Now, the question is - how to exit?
ie. U make a lot of $ but U dont have the time to spend it + your loved ones are beginning to look like strangers...
U may go like - holy crap, this isn't what i bargained for for the next 15+/- years!
I'm assuming U hit your peak at 40ish lar, thus have 10s of years to suffer

Ever thought about this?

Sorry mods - wrong topic. Done to emphasize importance of EXIT PLANS.

my exit plan... um... geez i need to think of one but I have noted down every suggestion you put out.The costs are peanuts when compared to the multi million dollar assets I see that's a nice strategy there. *noted down*
by the way i would like to point back to your excel last week, it shows that the 5.5% service charge for equity mutual fund is a one-off payment.. um.. the excel also shows a one-off contribution right? so any subsequent contributions will still incur the 5.5% fee? I hope I read the excel the right way

This post has been edited by monsta2011: Aug 9 2011, 01:37 AM

Well, if one's a multi-million or billionaire, no issue mar.
How many flers U know personally does investing overseas
VS
flers that U personaly know AND investing overseas AND are multi-millionaires?
Very very small % are multi-millionaires right?
if not, hey dude - whatcha doing here? U should be teaching & guiding us how to network with them mega-rich folks and also how to manage $ like a millionaire

On the Excel example, please notice that
a. I just used the STARTING amount (row 1 of each set of data),
b. added 20% profits (assuming a few months or years passed after (a.) )
c. sold / switch it out of equity
d. Bought back in / switched in back into equity (assuming a few months or years passed after (c.) )
Rinse and repeat

Thus, seed capital is the starting amount and the only "out of pocket" original outlay, no additional $ was put in. This is to easily see the costs in % over the years / multiples of transactions. If i put in real-world additions, i think it'll muddle it up until 99% of forumers will be cursing me

All subsequent contributions for mutual funds DOESNT INCUR THE 5.5% FEE IF USING SWITCHING. That's the concept of "how expensive/cheap in % vs transaction value OVER TIME Stocks Vs Mutual Funds" i'm trying to convey.

This post has been edited by wongmunkeong: Aug 9 2011, 09:19 AM