oh i c. mean it is riskfree ?

i would suggest you to learn the unit trust thru a friend that selling unit trust or you can learn the basic knowledge online in any mutual fund companies' website. They have FAQ section that can answer all the beginner's question.

When do you guys decide when to let go of a fund that just doesn't seem to be rising after your purchase?

I bought PIALEF since its launch. These 2 weeks saw the NAV dropped from slightly above 0.25 to 0.2393 today. I'm thinking of selling it if it continues dropping to 0.2110. At 0.211, I would have lost 20% of the total fund I invested (loss include the 5.5% service charge).

I guess I bought the fund in the midst of the Greece debt crisis which doesn't seem to be resolving anytime soon. The fund dropped even further following the 1000-point Dow Jones crash about 2 weeks ago. I'm afraid the NAV will just keep going lower and lower. Will the 2008 crash repeat itself soon?

Do you guys set a cut off point to minimize your losses, or just keep holding onto it and hopes that it performs better?

@Aurora Boreali
Since you are losing $, no point selling it. Unless you need the cash, else leave it as it is. You may want to consider topping up while the price is low.

And for the investors, I think we need to be prepare for the "double dip" to happen...

What is double dip mean?

"double dip"...??

if you mean market will drop further....then i bet it won't happen anytime soon.

do you know that malaysia market always act diffently from rest of the market.

it will be like that until next coming GE.....

This post has been edited by MakNok: May 19 2010, 08:29 AM

We Might see another great fall in shares price.

@MakNok
If you read financial news, you will know the answer. Even though Malaysia market has its own rules, it's affected by other major market.

People always say that it's best to switch to bond fund to prevent further losses/lock in profit when the market is bearish, and then switch back to equity when the market is going up again. This is because it costs nothing to switch to bond fund and only RM25 to switch back from bond fund to equity fund. (talking about PM here)

However, it is not so anymore. Look at the chart below:


If you switch from equity to bond, you incur RM 25 charge.

If you then switch back from bond (low load bond - all bond funds under Public Series of Funds are low load) to equity, you STILL have to pay the 5.5% service charge! What's the difference here if you just sell and then come back again when the market go up?

This post has been edited by Aurora Boreali: May 19 2010, 10:40 AM

Units are considered low loaded if it has not been charged a service charge of above 3%. The status of low loaded will change to loaded once it has been charged the above 3% service charge. Loaded units cannot change status to low loaded.
When you invest in an equity fund, your units are loaded units, so when you switch to a bond fund, it remains as loaded units as a service charge above 3% has already incured. So when switching back to an equity fund after that, you will not be charge the 5.5 service charge again.
Hope this clarifies matters.

NOT TRUE.
for the case of public mutual, when u bought the equity (loaded fund) then switched to bond (low loaded), it will be parked as loaded criteria, when u switched back the fund to equity, there is no 5.5% charge, only the switching fee rm25 applies. Have been doing that for many years.

if you predict "great fall".....then i will park at bond or money market...

So do I need to pay any switching fees to switch from equity to bond funds now? According to the table above, I need to pay RM 25.

yes, all switch in/ out need to pay the switching fee, unless u r a mutual gold or mutual gold elite member

Wow...
KLCI lost 22 point...
mamamia!!!

Guys,

I was thinking of investing in Public Mutual funds and etc. I kinda new to unit trust stuff and got a few questions to ask.

For example..

I have RM10k and I wanna invest in a fund like eg. PB Growth Fund. I will be charge 5.5% for service charge. If I decided to add another RM10k later to my initial RM10k investment, will I be charged another 5.5% for top up/additional investment? I heard that there's RSP where you invest a fix amount each month..will I be charge 5.5% for that as well?

whenever u pump in any fresh $$ into the fund, u need to pay 5.5%

gaTO,

The answer for all 3 questions is yes. The only time you do not need to pay the service charge is when your distribution is reinvested automatically.

Ohhh..as there's not written in regards to that except saying the service charge is 5.5%..thinking becoming unit trust agent.. lol..

If you top up or make an initial investment using PMO during the promotional period, the service charge is lowered to 5.25%.

gaTO,

Some of my regular clients did become my agent to save on the service charge. This is one of the strategies I employ. But it will only be effective and worth it if you are investing regularly.