i heard from my friend that if the fund distribute 5sens, then the fund price will drop 5sens as well. it seem confusing whether do we really earn on the distribution or not

yes

smallcap distribute 12 sen

so it price drop 12 sen

If you opt for reinvest, the distribution will be translated into equivalent number of units. At the end of the day, your fund value remains the same.

The drop in NAV after distribution is similar to general stocks/shares concept. When a particular stock declares interim/final dividend, the share price will be adjusted accordingly.

This post has been edited by David83: Sep 1 2011, 08:14 PM

I had done some calculation regarding the distribution. correct me if im wrong.

Assume the investment amount is RM1000 (after minus the SC).

if the unit price is 0.6453, then the units i get is 1000/0.6453=1549.667

after a year, the unit price rise to 0.7439 then the value i have is RM1152.797. This is capital gain.

Then they announce 9 sens distribution, then the unit price drop to 0.7439-0.09=0.6539. the distribution i get is 1549.667units *0.09 = RM139.47.

Assume the closing price for the next day is 0.6539 (no movement) also.

the units i get from distribution is RM139.47/0.6539 = 213.2895 units, the total units i have is 213.2895 + 1549.667 = 1762.956 units

Then the total units i have is 1762.956 * 0.6539 = RM1152.797 also.

What i gain is more units but the value also same.

The question is why they want to do distribution? since if the next day the unit price no movement, our value before and after the distribution still same

Now, that is wrong.

There is some rise before the dividends because speculators bid up the price, and some drop after because they decided to "goreng" something else, but is NOT the same as Fund distributions where it is guaranteed to make no difference to the total value of your funds.

There are some minor effects due to tax, and due to losing your MGQP if you withdraw units rather than distribution, but frankly if you don't have enough money to qualify for MGQP, don't waste time thinking that you do.

if we read the report, we should read the return instead of the distribution or distribution yield?

For returns, the only thing you should read is the performance graph which adjusts for distributions, and gives you the units x NAV, ie total returns:

http://www.publicmutual.com.my/application...formancenw.aspx

This gives you the real return on your total RM investment.

Just curious, mind to share how much you have invested OR plan to invest in unit trust? There must be a lot of 'Mutual Gold' & ''Mutual Gold Elite' members here

i heard small cap reopen. wanna buy some smallcap =)

It has been opened since 10 August 2011 (I think)!

SMALLCAP may have been overrated.

It is (minus)1.61% at the moment for 1-year. Vs say Public Focus Select Fund which (plus)13.63 for 1-year.

Your choice.

monday i plan to invest in PBGF, but it has closed. the officer introduced me to buy pb china asean equity fund but i hv nt so high confident in oversea fund or shud i invet in pb islamic equity fund?

This post has been edited by jingle1103: Sep 1 2011, 11:01 PM

How do we judge a mutual fund performance is doing well or not. Example can we say that we bough a mutual fund at price NAV RM 0.25 and after many years the current NAV is 0.16 so the performance of the fund is so so.....

This post has been edited by myasiahobby: Sep 1 2011, 11:09 PM

Isn't it supposed to be -2.93% at the moment? Not count from the financial year end to check the actual performance?
PFSF financial year end on 31 Dec.

You may want to consider putting *some* (and I'm not an agent) into PBCAEF. It has dropped drastically, and that is usually a good time to go in *if* you think China/Asean has potential in the long term.

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Added on September 1, 2011, 11:14 pmThe PM chart is what I quoted, but it's near enough. (minus) we agree.


This post has been edited by howszat: Sep 1 2011, 11:14 PM

Volatile moment, still will intro u to oversea equities fund?
Good agent

And that is the problem with NAV and those *dang* distributions. You cannot just go by NAV alone. See my previous post about looking at the charts instead.

If something whose real value goes from 0.25 to 0.16, my language to describe it would get me banned from this forum.

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Added on September 1, 2011, 11:27 pmWhat do you mean? What has overseas got to do with whether equities is more or less volatile? You mean local equities are less volatile? Have you seen SMALLCAP's performance?

This post has been edited by howszat: Sep 1 2011, 11:27 PM

thats mean we should keep our money in MM or bond first to wait for solid good news?

Take a look at the 10yrs, 5yrs, 3yrs and 1yr performances, ending at 29th Aug 2011, of PB's & PM's funds - U may want to take a peek before planning and executing.Or U can refer to them charts as well

FYI - these data are direct from PM's FP Advisor system, i've just formatted it for ease of reading.

PS: Oops - my bad, forgot to mention it's in XLS / Excel format once U unzip it. Thus, those without MSOffice, OpenOffice, etc. - sorry yar

This post has been edited by wongmunkeong: Sep 2 2011, 10:45 AM


Attached File(s)
 10__5__3___1_yr_performance_data_ending_20110829.zip ( 19.75k ) Number of downloads: 55

the investors distribution eitehr to take on not to take is important for choosing the funds.

if investor want to take the ditribution, so, go to those funds has annual income disribution.
if not, go to incidental distribuiton, whre the disribution if any only.

UNIT TRSUT IS PROFIT/LOSS SHARING INVESTMENT. THE DISRIBUTION IS FROM PROFIT/LOSS OF INVESTMENT NOT THE UT COMPANY PAY SEPERATLY LIKE FD.

PLS GO TO HOW TO CALCULATE UNIT TRUST IN MY SIGANATURE.