SC is 5.5%.. But to be frank, agent commission really sarks to the bottom one.. Client invest RM1000, agent commission only around RM25. Zzz
Car petrol toll drink eat, finish off already la..

well, for those who needs the agent service, 5.5% service seems reasonable, for those who do not need and do self research and know more than the agents, it will be too expensive to pay 5.5% SC. Ideally it shd be have 2 tiers SC, tier 1 with full service charge, tier 2 is say 1% SC, but it is very difficult to execute this idea.

If only you have one client investing $1000 .
Well, with 10 clients investing $100k each, 2.5% - RM25K agent commision is alot.

This post has been edited by monsta2011: Aug 14 2011, 01:44 AM

ya, if 10 clients with rm100k only..if no??

Maybe those with sole career as UTC can enlighten us on how they make a living out of it. I believe it has got to do with ones ability to bring in more clients. Also correct me if i'm wrong, I heard that the annual management fees include an amount payable to the agents as well.

True if the agent adds value.

If the agent is nearly as blur as the customer OR worse, only worried about his/her own commission, then buta buta customer "straight away" lose 5.5% lor. Makes it harder to win when one's ammo is cut down right at the beginning, even for getting into the battle

Note that either most sales agents just put their customers on auto-cruise (monthly Direct Debit Instruction / Standing Instruction) and the 5.5% (ok lar, realistically 2.75% only flows to sales agent) keeps draining along. Lama lama jadi bukit heheh
OR
con-sulted the customer to go in lump sum, sure win-wan, to "lock-in their commission one shot"

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Added on August 14, 2011, 6:40 amYup - PM agents get something called "career benefits" (other fund houses calls it differently),
ALL THE LOADED UNITS held by the agent's customers * 0.2% per year (moving average 12 months i think)
/12mths
is paid out monthly. KParam - calculations correct ar?

This amount can be like $3K to $10K or even above - depending on how well their customers trust the agent and holds on with the agent VS moving on to other agents/fund houses.

Now, this "career benefits", IMHO, should be the aim of real agents/consultant as:
when the customer wins (ie. satisfied),
then they stay with that agent AND grows their wealth (loaded units held),
then the agent wins.
Win-Win situation


This post has been edited by wongmunkeong: Aug 14 2011, 06:40 AM

ya, UTC gets unlimited incoms, sush as personal sales commisoins, overidng commision (if hs downline), bonus for cash investments, carriesr benefits,free oversea trips if close the targets.... etc.

These statements make me think of my current unit trust consultant!

This post has been edited by debbieyss: Aug 14 2011, 09:31 AM

OMG..... i forget to calculate for agents commisons..hehehehehe

so far i never got chance to closed BIG..BIG....
i follow PROJECT RM20K montly.

for me maitain as min rm20k (epf + cash + DDI), emough for me to get some side income montlhy.


if any agents follow this and hs downline let say 10 dwnlins.. THE MORE IS BETTER TO GET UNLIMITED PASSIVE INCOME,,......also follow this rm20k projects ....at least can get rm1k montly for me.

rm5k from each epf client. 1 month 4 clinet only, so 1 client per week.

it depends how the agent, breakdown.. if 10 client, rm2k each.

part timr-lah bro.

full timer can do project rm100k montlhy or more. own breakdown lah how many cleints per week.

many clients, many incomes, many carrier benefits,,,, many free trip also-le.

ya its win win situation for both. agents win less 4% first... than customer win more later, it cabe 20% 30% 100% or more.......looonngggg tteeerrrrmmmmm

if my clients buta buta, i will park their money in moderate/income fund...PIDF my target. so far so gd. no more chance to ittikal and enjoy the free ins., closed. PBF also not bad with free ins.

if my client understand abt UT, i will let them to choose themself.

I dnt think the client help much ...
Ask to buy fixed income fund, this fund keep forming a circle one. How to make money from this fund ? Look like he wanna ensure you sold and buy back the fund constantly to generate fix income for him.
The agent get the commission yet didnt inform to sold the fund, even keep help u buy it when the fund keep dropping =___=
Some more ask my mum to buy it early and said dividend coming. End up by mum buy at the top price, the dividend not enough to cover lose. buy at 0.86xx now it raise back to from previous bottom 0.7980xx ~.~

For them to get 10k a month is easy ! Their main target is those who dnt know it ~

This post has been edited by Dackson: Aug 14 2011, 10:41 AM

Does all the benefit (except sales charge) for agent come from Management Fees ?
I don't see they stated that in yearly or interim report.

I don't really care of agent benefit unless, if PM reduce the agent benefit, reduce the management fee and we as investor will get a better profit.

the so called 0.2% p.a. career benefit on the loaded funds i guess is from the 1.5% annual management fee.
some funds even charged up to 1.75% annual nanagement fee. PM charge high SC and annual management fees due to:-
a) leverage on they are the biggest private mutual fund company and have among the best managed funds in the country
b) security commision has the closed door policy to foreign fund managers, so less competitions.

i just take Franklin Templeton Fund Management as example. This company has > 100 years experience in fund management,
i) the service charge for their funds is just 2% for equity fund if u buy thru the right channel
ii) Annual management fee is lower, like 1.25% for equity fund and 0.5% for fixed income funds.
iii) most of their funds do not pay dividend, so the dividend will be accumulated and reflected in the fund price, thus investor do not need to pay tax, mutual fund need to pay 25% tax on the investment incomedeclared b4 distributing to the investors, and it already taxed once when the invested company declared the tax and paid to the mutual funds.

Many ppl do not see the signicant difference on this charges, one can calculate the difference in ROI, if assuming you invest RM10k in day 1, and after 10 years how much u will get if both fund generates annual returned of say 15%. Calculation, as comparison, therefore will be based on
a) initial SC of 5.5% vs 2%
b) Annual fee of 1.75% vs 1.25%
c) 25% tax on dividend declared vs No tax elements

i stop encourage my client go for those fund giving dividends at least 3 months gap. after i aware the dividdns actualy after the tax, and the money must work for u to give dividedns.

it depends on UT to cut the lost (SC) within 1 yr. if the market in uptrend, it may cover.

my smallcap cover the SC within within 6 motnhs include gain during uptrend. its all depeds on the market trend and the fund performance.

so, learn from the mistake.

investors shud understand abt the capital gain/lost vs dividedns.

if u focus on gain...look for growth fund dont bother abt dividedns. dividedns actualy from ur own money. not the company giv u extra from thier pocket.

if u want steady income/dividedns annualy. go for dividedns fund. no matter how the market, u will get the dividedns n of-cource depends on fund performance too. n ur units will remain unchange after the dividedns payout. ur capital is ur units.

the value of ur unit determine by the unit price mvment and the fund performance.

go to how to calculate the unit trust in my signature.

all the benefits follw the SC guides. actualy agent commission already reduce since the SC reduce from 6.5% to 5.5%, some time ago. cannot reduce-lagi-lah kawan.

u still hv option go for fundmart where the SC is only 1%. but not PM -lah .. other company. u need to checkm abt is there any repurchase charge too and also the mgnmt fee.

i thinkall the mangt fee for all UTMC include amanah saham manage by PNB are similar. corect me if i wrong. not fair only ask PM to reduce the mgmnt fee.

is there any UTMC giving less mgmnt fee?

not I want to purchase that fund one. Is my parent purchase one. I said dnt want end up they still buy it.
After i calculate few of the fund, it only earn 4.7% after deduct from the SC (1 year ald =___=). This 4.7% is luckily the NAV increase if not eat the sand I believe i keep it at good dividend share. Keep at EPF better or Prudential (my friend said > EPF).
I hvnt calculate out my sister monthly invested high risk fund gross, I think that one hungus ald ...

Any fund nice for recommend ? Alot hungus fund, it's time to buy it and keep ^.^
Today is the 2nd day i know how the fund work.
I'm thinking of new and potential fund, Indonesia fund, Equity fund. I saw that Public fund some how related to their public quarter result and interim dividend, which majority fund price down after quarter report =_______=

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Added on August 14, 2011, 12:53 pmis there any way that dnt want agent recommend ? Then should reduce agent commission ? Few year later SC may be can reduce to 4% ?
That agent just fill up the form and bla bla ~ if real one, will bring out financial calculator to calculate possible return during uptrend and downtrend.

This post has been edited by Dackson: Aug 14 2011, 12:55 PM

ya, dunt want agent, sign up with me, sit for FIMM exam, get the lisence, mangage by urself, the enjoy the commision own self.

nice fund? to be frank, all the equity n balanced fund cannot run away from any risk.

well i can recommend,
PSF,
PRSF,
PGF,
PAGF,
smallcap
pdsf
all the moderte/aggressve local islamic funds.

UT for medium to long term, 3 yrs n above.

UT is not guarantee at any of time. u hv to choose which is macth ur investment objective.

look at the past fund performance, c waht happen to the fund during down trend and recovering time.

ur UT investment returns = ur risk factor VS ur age factor VS ur time frame VS ur UT portfolio VS ur investment strategy.

may i know where is the right channel to buy fund from,Franklin Templeton Fund Management , as u mention?

Yup, then all important thing is the final return. If company with low sale charge, but doesn't perform should be avoid more.

PM has a market share of 44.3%, thus 1% of PM management fee is definitely higher then others.
If PM reduce their % management fee, the others UTMC need to follow or compete,
making more benefit to us, investor

there is no guarantee that those UT companies that charge higher fee will generate better return, so since return is uncertain, low cost funds are preferred. It is time for PM to reduce their fees.
For those customers that do their own study and DIY subscribe online shd enjoy lower SC.

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