One of the reason why u lose money in UT is simply bcoz u dunno the substantial investment by that fund.

Beside that , u dunno to switch when market is bad. U have no enough experience in UT or maybe u choose wrong agent.

If u know how to switch , i think u can earn more dividend than if u just put your money in the fund untouch.

Hotlink,

1) I admit I do not know how to play Malaysia market.

2) If a person has to switch and know how to switch regularly, won't the person be better served by stock as opposed to UT?? The person will be hit by 5% every times that he/she switch??

3) If a person has to swicth regularly, then. he/she is not investing. This is speculation/gambling. Not everyone can play this kind of game well.

Dreamer

Stock? If u buy stocks how do u switch? u just can sell the stock . But if u buy UT then u can switch from the equity fund to bond fund if the invested subtaintial company of the fund drop a lot.

Since bond fund usually just grow up ( buy pure bond fund ) bcoz of the interest of the bond, so when the market drop, example u switch your 10k from the equity fund to bond fund, then u still can maintaince your 10k and get some interest of the bond fund.

When u think the market is almost the reach the bottom line, then u can switch back to the equity fund since the NAV of the equity fund is low then u can manage to get more Units. AND the equity fund will grow very fast.

Earning from the bond fund and a lot units from equity fund will make your return great.

As i know, Public mutual UT is free of charge from switching equity fund to bond fund, while rm 25 will be charged if u switch from bond fund to equity. So it is quite little if compared with 5% u mention.

This not gamble, just how you manage your portfolio well like if you buy stocks, u need to have a clear bottom line for u to cut your stocks even is a nice blue chips

Imagine if a blue chip drop from RM10 to rm 2, if one person cut loss at rm 9 and use that 9k to buy back at rm 2 , then when the blue chip grows up, he will earn a lot. Dont simply keep the stock and think that you wouldnt lose a cent if u never sell the stock.

I would like to emphasize again switching is not gambling in UT.

"As i know, Public mutual UT is free of charge from switching equity fund to bond fund, while rm 25 will be charged if u switch from bond fund to equity. So it is quite little if compared with 5% u mention.
"

if not mistaken, free switchin is onli avaiable once a year of investment and it depends on d fund itself....

but afaik, there is no free switch for public fund, correct me if im wrong...

Hotlink,

Let's take an example, I have a blue chip stock that pay dividend yield of 6% at RM6 which is around RM0.36 per share. Let's say the stock drop to RM2, it still pays RM0.36 per share. To me, I am still collecting dividend yield of 6%. Why should I sell?? In fact, at RM2, the dividend yield had gone up to 18%. I will buy more shares and hold.

I make money when I buy NOT when I sell.

If you buy a share at certain price with good dividend yield, as long as it still pays the same dividend, you really do not care what the current price is??

Dreamer

I agree with Hotlink.

Switching is a way to manage our portfolio and optimize our return in UT. If the service charge of 2 funds is same, there's no any charge when switching. This is the case for most fund houses. It's a good way to manage our portfolio that we switch to bond funds when market is going low, and switch back to equity funds when the market is going high.

For sure, blue chips have lower risk...but most of the blue chips price is high...not everyone is afford to buy blue chips. In fact, there're many people buying small share and thinking want to earn fast cash. In this case, the risk is very high.

I just feel that, if you know nothing about share, better don't get involved. If you not clear about the UT process, please just save your money in FD.

Anyway, I think that dreamer101 is very good in share market...so maybe you can share with us, how to choose a good stock to buy...

Leekk8,

I am not good in Malaysia share market. I lost so much money in Malaysia market (unit trust plus stock) that I have only confident to buy one stock in Malaysia market now.

So far, the conclusion seems to be that you need to know how to time the market in order to play in Malaysia market.

Dreamer

Dreamer101,

I agree with you that we do not need to bother the price if we get a constant dividend from the stock.

Anyway, does anyone can guarantee that the stock will distribute dividend all the time? Dividend is not a must thing for common stock holder...it's not like bonds' interest.

The important thing is, study the financial situation of the company, no company will give dividend if their business is not good...

how much u has lost??

Dreamer,

I think it's important we study about the company before we buy the share. We have to study the financial statement and their management as well. As I say, there's no fast cash we can earn in stock market. How much we earn depends on how much effort we put.

Try to study the market trends and financial situation of the company, then we will know which company is strong in finance and can give us returns although the market is going low. By study the market trend, we can even manage to get more returns by buy low sell high.

We all are learning together now...

Any pointers or tips on how we should start to learn investing ?

read books/internet about financial planning. Learn budgeting, control ur expenses, clear the debts (especially credit cards) before u learn to invest.

when u saved enought emergency cash with u. start with FD. then take 1 step ahead, live with the alienate financial terms, throw ur money into the med/high risk investment, (not too much) and start losing money. XD

losers are the one who run away after losing some money. winners are the one study from the loss and earn them back.

*yeah currently i'm in the "losing money" stage now. XD

This post has been edited by ky_khor: Aug 24 2006, 04:36 PM

Are u sure, if u buy at rm 6 for a share and divident at 6 % is rm 0.36 per share???

As i know even u buy rm 10 for a share, if divident is 6 % , u will only get 6% of the rm 1000. mean rm 60. and need to minus 28% of the rm 60 for income tax, if the dividend is not free of tax.

Correct me if i am wrong.

Ya, you should start with financial planning. Set your goal, save up an amount for emergency use. Then, you can plan any investment that suit the risk that you can take and can achieve your goal.

I think dreamer is right. If you get dividend of 6% from a RM6 share, you will get RM0.36 per share. This is same as your calculation, you get RM0.60 per share if the share price is RM10. The key thing here is, how many shares you're saying about. If your share price is RM10, I think one lot cost you RM10000, so you will get RM600 dividend. I'm not too sure about the tax, but 28% is the company tax rate.

1) By default, they deduct 28% from your dividend check and you can claim back after you file your tax return.

2) I know I am right because I am collecting the dividend every 6 months..


Dreamer

Leekk8,

I agreed with you about studying the company. But, in the case of UT, it is even harder than buying a single company's stock.

Dreamer

For Forex FD, since about 2 years ago local (both foreign and local) banks already got such service so don't need to go to the country to open up a FD account. Currency risk is definitely got, no doubt.
Just want to point up some and more investment tools.

For share investment, several key factors are the key to monitor.

- management (there are plenty of mis-management listing company here, I don't think need to elaborate more on this)
- earning or PE ratio
- dividen yield
- company prospect
- asset quality
- shareholding liquidity

Anybody heards something called "3-generation savings" from insurance company? A combination of insurance coverage and guaranteed money return? I'm not so sure ... just heard it from my friend.