Malaysia is now the least attractive bourse among Asian countries, even JCY (one of the biggest hdd manufacturer based in JB) has postponed the listing in KLSE and consider to be listed in Singapore or HK as The Edge reported. KLSE really lack of quality company to be invested, also liquidity is quite low which make some listing meaningless.

Unless there is major restructuring of GLCs company, and policy revamp, it is difficult to attract really serious foreign interest and fund coming. We don't need hedge fund that 'goreng' Iris like mad which won't do any good to the market.

it seems they have stop gorenging Iris.... no more huge price change on it

You know I was calculating whether  unit trust is really worth it or is it just hype. So I took one as an example and benchmarked it against the FD to see whether it is really good or is it all hype.
Name of Fund Public Growth Fund

Category of Fund Equity Fund

Approved Fund Size 4.5 Billion Units

Launch Date 11 December 1984

Investor's Risk Profile Moderate

 

 
Fund Objective
To achieve long-term capital appreciation with income considered incidental.

 

FEES & CHARGES
Service Charge 5% - 7% of NAV per unit
Repurchase Charge Nil
Annual Management Fee 1.5% per annum of the NAV
Management Expense Ratio(%) 1.56 (for Financial Year Ended 31 July 2005).
 

Annual Trustee Fee
0.06% per annum of NAV, subject to a minimum fee of RM18,000 and a maximum fee of RM450,000 per annum.
For fund financial report please go to
http://www.publicmutual.com.my/page.aspx?name=PGF

go to review, register and download the report

Now
Assume I have RM100,000 and I invested on 2004 (since they have only 3 years data shown)

Beginning 2004
Service charge for purchasing = RM6000 (average service charge)
Total investment                    =  RM 94,000

Annual return 2006 = 4.78%
Annual return 2005 = 12.3%
Annual return 2004 = 16.79%

Investment value end 2004 = 109782
Management fee                 = 1700
Net Investment Value          = 108082

Investment value end 2005  = 121376
Management fee                  = 1820
Net Investment Value           = 119556

Investment value end 2006  = 125270
Management fee                  = 1879
Net Investment Value           = 123391
End of 2006 Sell
Sale value = 123391
Service charge = 8637
Total amount  = 114754
Net profit over 3 years = 14754
Annual returns =  4.918%
FD returns

4.2% for 36 months (3 years)
Now the point of my post , take a look closely. The unit trust "supposedly" has an average annual return of 11.29%(I think this is considered on the high side) for the three years but after cashing in on the profit you realised that it ONLY ouperforms FD by 0.76%. Can you imagine if the fund annual returns was just average say 7-8%.

Where did all the money go?
1.) Management Fees charged annually. This fees can go up to 3% REGARDLESS of how the fund is doing.
2.) Service charges. Every buy and sell are charged 5-7%.

So if a Unit trust fund boast on high annual returns, please do the maths and calculate how much the fund need to perform to cover all your "losses". I notice most of you just take annual returns figure without taking into account these factors at all.

Now do you still wonder why hundreds of million has been lost in unit trust as reported in the newspaper?

FYI, your culculation is too straight forward.
as i mention on my previous post....

3 type of source of return from UT which are:
1. The rise in unit price (We call it capital appreciation)
2. The annual dividen/distribution/bonus declared
3. The unit split declared. Switch from one fund to another whenever there is dividend or split unit to be announced, so that it can maximize the ROI

Of course at one point of time, once the item 2 and 3 declared, there is no value added, but once the unit price increase.., the value RM will definitely increase..
Why hundreds of million has been lost in unit trust as reported in the newspaper?

There is a few reasons why this thing happen
1. The fund they invest not really perform
2. They got a lazy ass fund manager
3. The company they invested in, holds small fund size.
4. Inexperience fund manager. For example; the fund manager put all the money in equity fund which is high risk fund without diversified the investments OR just leave the money fluctuate without do any proper switching method,
* Public Mutual only imposed the service charge once, on your initial/first investment. After that only management fees 1.5% perannum

I can learn about investment faster when I really put money into it. Is it silly? 

Sale value = 123391
Service charge = 8637
Total amount  = 114754
Net profit over 3 years = 14754
Annual returns =  4.918%

Erm..something popped into my mind. Why not we invest in those ah longs who needs money to borrow money out? Then we also can have nice interest.... my friend does that I think it's 1.5% per month... so means by 3 months it matches the interest rate of any bank FD 

Ah Long is illegal in Malaysia, you might be sued if doing this...
It's not an investment if we do something illegal...

actually it's illegal to even loan ur fren money.... according to the law only those with license can do that

I think it's legal as long you do not charge interest. That's all... License means u can charge interest. 

Yes, it's legal if you didn't charge any interest on your loan. If you lend money or even give money to your friends without charge any fees, it's legal...
You can give your money to anybody...right???

I think it's legal as long you do not charge interest. That's all... License means u can charge interest. 

Investment is like planting a fruit tree. You won't be able to see the fruit in short term. Good performing mutual funds (unit trusts) need at least 3 years to see positive returns and you may break even by the first year.