More units, more money     how to more money if less units? unless the NAV stay the same.

Didn't I say earlier that your NAV will be adjusted down once distribution is cleared. If the next day NAV slides down, meaning what you're in loss.

Before the distribution, the "value" is still retained the same; provided that distribution is reinvested and NAV does not change.

More units, more money    how to more money if less units? unless the NAV stay the same.

I know it slides down after DR. But if the NAV bounce back just like it was before the distribution, still untung right?

1000units
Before distribution, NAV RM1. After DR, RM0.8. Assuming i have 1200units at RM0.8

Wait 2-3months(if market steady lah)
The nav back to RM1.
so now i have 1200units x RM1 = RM1200. Correct?

You have the point - optimism way of looking into it but NAV movement can be the other way as well. Let's not talk about the future since we all don't own a crystal ball.

What I would like to stress of the "value" before and after distribution.

You have the point - optimism way of looking into it but NAV movement can be the other way as well. Let's not talk about the future since we all don't own a crystal ball.

What I would like to stress of the "value" before and after distribution.

ok i get it. Do u guys choose to reinvest or pay out cheque? And do u guys switch over to bond fund if NAV drop over 5-7%? I dont want like last time my agent did nothing during 2008 crisis 

ok i get it. Do u guys choose to reinvest or pay out cheque? And do u guys switch over to bond fund if NAV drop over 5-7%? I dont want like last time my agent did nothing during 2008 crisis 

It makes people who don't know any better happy because they are getting dividends, hence it makes people want to buy more.

It gives the company something to announce, wow - look at all the dividends we are giving out.

It keeps the price per unit low, so more people will buy it because they think it is "cheap" .

yes, u r rite...if the company didnt declared the dividend, then the NAV keep moving up...so less people wil buy, only those signed for DDI.
But not all, i got a friend, when the NAV at high (she personally think at high), then she withdraw the money from the account, so that the bank cant deduct the money from there.

investor wil think twice when the NAV at higher, they will compare the NAV at the time they invested and the current NAV.

It doesn't matter if the NAV is high or low, the investment stays the same. If you invest RM1000 (excluding sales charge), for example.

if NAV = RM 1 = 1,000 Units x  Rm 1 = RM 1,000
if NAV = RM 25 = 40 Units x Rm 25 = RM 1,000

The total amount is the same regardless, and the future earnings will be the same, so what is the difference? I have invested in funds which each unit is about 100+USD, it has performed better than my PM fund which is RM 0.25 per unit. 

Only those who does not understand how UT works worry about unit price and amount of dividend given, these are the tricks of the trade to fool the average investors.  These are the same thinking as some of my friends who says RM 0.10 share is "cheap" and those RM 10+ shares is "expensive" no matter what company is behind it 

Maybe the meaning of "cheap" & "expensive" for ur friend is whether they can afford or not...

i agree with ur computation above, but that is at stage of invest...
but if look the time after the dividend...

example:
Invest RM1,000 @ NAV RM0.25
4000units @ cost RM 0.25 = RM1,000

NAV before the dividend pay out: RM0.30,
4000units @ RM0.30 = RM1200, unrealised gain was RM200.

let said dividend 2sen, NAV after dividend RM0.28 <<<assuming
4000units @ 0.02 = RM80 = 286 units

after dividend
4286units @ 0.28 = RM1,200
RM1000/4286 units = 0.2333

which means the cost per unit is reduced to RM0.2333 from RM0.25
and the NAV is at RM0.28 after the dividend...people compare RM0.28 & RM0.30, and have a chance to climb up to RM0.30 or higher...

this is what i understand...correct me if im wrong...

If you do the same calculation with a NAV of RM 25, it will be the same figure, as long as the percentage is the same.  The NAV makes no difference. The chance to climb higher is NOT affected by the dividend payment, it is based on the market. Basically dividen in UT is NOT an earning, it is merely a distribution. You are merely taking money from your left pocket and put in your right your other pocket, does that makes you feel richer? 

Lets say your calculation above, You have invested RM 1000. If RM 0.02 dividend was paid (and reinvested & assume no tax) as you mentioned above, your total earning is now 4286 * 0.28 = RM 1,200 (20% earnings), and if dividend is not given then 4000 units*0.3 = RM 1,200 (20% earnings), can you tell me what is the difference? Is it because you have more units with cheaper value, you can feel better? 

Again if the UT earnings rise by 10%, the UT price (after dividend) earning will be 0.28*110%= 0.308*4286 = RM 1320, if the UT did not distribute dividend then the UT price will be  0.3*110% = 0.33*4000 = RM 1320. Again no difference. 

Don't be fooled by the agent's sweet talk.  Also if you noticed, dividend is taxable, hence you LOSE money. If no dividend is given you are not taxed.

Gark, what u means is unit trust shouldnt declared dividend or invest in UT are not making money??

confuse...

It doesn't matter if the NAV is high or low, the investment stays the same. If you invest RM1000 (excluding sales charge), for example.

if NAV = RM 1 = 1,000 Units x  Rm 1 = RM 1,000
if NAV = RM 25 = 40 Units x Rm 25 = RM 1,000

The total amount is the same regardless, and the future earnings will be the same, so what is the difference? I have invested in funds which each unit is about 100+USD, it has performed better than my PM fund which is RM 0.25 per unit. 

Only those who does not understand how UT works worry about unit price and amount of dividend given, these are the tricks of the trade to fool the average investors.  These are the same thinking as some of my friends who says RM 0.10 share is "cheap" and those RM 10+ shares is "expensive" no matter what company is behind it 

Gark, what u means is unit trust shouldnt declared dividend or invest in UT are not making money??

confuse...