Whether the fund is cheap or not, we have to look at the benchmark which she is pegged.

For example, on the 18-7-2011, when KLSE-30 & 100 dropped like crazy, then the funds that are pegged against it becomes cheap. I hope you smart investors top up on that day... H3LL, I sure did. For example... PRSF, PSSF, etc.

Xuzen

The above three funds are of very good risk adjusted performance. Highly recommended to participate. Of the three, Fund #3 is closed.

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PUBLIC ISLAMIC INFRASTRUCTURE BOND FUND = Too new, no supporting nor history to make assessment.

PUBLIC ISLAMIC STRATEGIC BOND FUND = yes a good selection with 5.86% annualized rtn (3 year average) and a Stan Dev of 1.7%. This gives a very handsome risk adjusted performance.

One word of advice though, if your time frame is very short, (<3mths -6mths) I suggest money market because bond fund incurs a initial load of 0.25% whereas money market doesn't.

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This post has been edited by xuzen: Jul 26 2011, 01:05 PM

PBFI may have the highest annualizes return but it also has a higher volatility. Its risk adjusted performance (Sharpe ratio) is lower than that of PISBF. Something you may want to ponder. In portfolio management, there are more than one parameter (ROI) to consider.

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The Jessen-Alpha ratio for Public China Select Fund (PCSF) - 3 year average is of negative value.

This means the fund manager suxs and he/she has destroyed his clients' wealth.

Please fire him by redeeming your funds into better performing ones.

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The return has nothing to do with the bank, but more like how the underlying asset class and fund managers' perform.

By using mathematical model, we can deduce that some managers sucks and some good. If you know how, then you can construct a optimal porfolio.

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J-A ratio = fund return - [risk free rate + Fund beta x (benchmark return - risk free rate) ]

J = Rj - [Rf - B.(Rm - Rf) ]

Quite a simple formula actually.

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There is no hard and fast rule about Risk Free rate. Basically it is not defined. However, in the US, Rf is usually taken to be 10Year T-Bills.

I guess, Rf is something that is stable and unfluctuating.

Yeah, I use 12mths FD rate as Rf for my calculation.

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UT is usually a mid term (3 years) to long term (5 to 10 years) investment vehicle. If you are looking at profit taking <90days, then look elsewhere:

I) Play OSK KL-Tracker 1% in, 1% out.
II) Play stock market directly.. 0.73% in, 0.73% out

Good luck.

Xuzen