Meaningless to them. I find distribution quite meaningful.

Totally agreed.

Thanks for the info.

You are indeed right, the statement never mention dividend nor distribution but the statement is in fact a distribution (I got more units in total).

I don't mean to disappoint you, it is a photostated A4 paper and I don't have a scanner nor a good camera. But the paper is an example of monthly investment, here goes;

"A monthly investment of RM100 made at the beginning of each month, with interest compounded monthly, accumulates the amount indicated at the respective years."

The above is a statement from the paper and has a table of "Annual Interest Rate" for 3 - 35 years. That's where I got the "annual interest" word from

---

Added on April 25, 2012, 10:31 pmkparam77, I am going through the blog you suggested but I am stuck at distribution.

You mentioned

Distribution;
RM0.09 declared as Distribution for Public Saving Fund (PSF).

I am cracking my head as to where do I look for the the variable of RM0.09. I was looking at my Interim Statement of Investment where I get the distribution, but nowhere do I see the variable for RM0.09.

Is it found in the Interim Report instead?

This post has been edited by Malformed: Apr 25 2012, 10:31 PM

u can get it from fund review..... http://www.publicmutual.com.my/LinkClick.a...LY%3d&tabid=248

look at the PSF bottom annual returns for past 10 yrs. look at distribution(sen) for 2010. it's 9.0 sen, meaning RM0.09.

I'll continue my calculation and get back here

ok ok .. i got it now.

its call pocket calculator. its a table/formula for compounding interest where u can use this table/formula to calculate any vehicle which can give compounding returns like FD,EPF, UT and others.

u can take Annual interest rate from the table as annual/average compunded return in UT.

take note: its not abt distribution, its a abt total return in UT.

Sorry for the misunderstanding. kparam77, in the blog you shared it was not mentioned how do we calculate our Total Units purchased... I'm trying to put the calculations into excel sheet to see statistics easier. Is there any prepared excel sheet that is made for it online?

tis could help u.....

Example :
Let assume that an investor invest RM10,000 in a fund where the price is RM0.50 on that day(NAV). The service charge is 5.5%.
Amount invested / NAV Per unit
RM10,000 / RM0.50 = 20,000 units


Service charge per unit = NAV per unit x Service Charge(%)
= RM0.50 x 5.5%
= RM0.0275


So, The total service Charge incurred by Investor is
= Service Charge per unit x Units credited to investor
= Rm0.0275 x 20,000 units
= RM550.00


Following the above, the total amount payable by investor is
= Amount invested + service charge
= RM10,000 + RM550
= RM10,550


Normaly SC will be deducted from amount invested or capital,
Now, assume the capital is RM10,550

formula for SC is;

SC =Service charge = 5.50% per unit of NAV.
(A) = capital = RM10550
SC = A - [A / (1+5,5%],
SC = (10,550) – [(10,550) / (1+5.5%)],
SC = RM10550 – RM10550/(1+ 0.055),
SC = RM10550 – RM10550 / 1.055
SC = Rm10550 – RM10,000
Sc = RM550.

After minus the SC from the capital, the balance will invested to buy the units as per below;

RM10550 - RM550
= RM10,000

the purchased units = RM10,000 / RM0.50(NAV) = 20,000 units.

i dont hv any excell yet, maybe wong can help to get the excel.

Wong pls if any.

is it correct if i say it the following way,

you are not paying extra, just that you hv less units than you are suppose to hv after adding on the SC.

using the example above, let say u invest RM 10,000 in a unit trust with NAV of RM 0.50 and a 5.5% SC on the NAV.

without SC, you will get: 10,000/0.50 = 20,000 units.

but add on SC, the units you actually get is:

10,000/(0.50 + 5.5%) = 10,000/(0.50 x 1.055)
= 10,000/0.5275
= 18957.35 units.

which is less than 20,000.

so, your current value of the unit trust is:

18957.35 x RM 0.50 = RM 9478.67

this means that your SC is RM 10,000 - RM 9478.67 = RM 521.33

(figure is being rounded up to 2 decimal points.)

is this correct?

Are you sure?
Should be RM10,000M - RM550 = RM9,450

Can't believe as UTC, you gave incorrect info..

Read the explaination again. At that point the assumption is capital is RM10,550.

Point of assumption?? If I issue you a cheque of RM10000 for fund-A, can you assume I have given you RM10550? This calculation is basically meant for MGQP calculation, not about the amount being invested.

To simply calculation aka layman calculation, If you invest 10K, then
MGQP = 10000
Actual Invested amount = 94.5% of RM10000
Service charge = 5.5% of RM10000

Hear ya go.
Added a check with my own units received, just in case - must lar, sharing right info/data mar.



Attached File(s)
 SC_and_Units_received_calculations.zip ( 8.21k ) Number of downloads: 138

Early early open laptop get good news! Thank you both of you wongmk, do you rely much on the Excel sheet? I'm used to seeing data in excel

Hi Malformed.
Yeah, i do rely on Excel a lot as i know my weakness - simple logic can get confused when lots of numbers are thrown around, my processing power low mar, thus outsource to Excel lor

Anyhow, i'm doing this at work (Excel to prove savings, VS comparisons, etc.) thus, it's second-nature to me to "break things down" in Excel to use simple logic on.

Me too. I have all my stuffs written in excel, from personal expenses, public mutual to transportation and stuff... It's easier by looking at the tables. But it's hard to understand each calculation for public mutual, nonetheless very important to prevent blind investment that's why I'm putting all the calculations in excel

tkhs for the excell wong.

yes, ur calculation is correct. the service charge deduct from the amount RM10,000 and with the balanced purchase the units.

NOT everybody will understand it.

so,
1. need to show how to calculate the service charge per unit.
2. how much will be deducted from amount paid for the SC and get the units.


dont confuse, if u read the prospectus, it only show how to calculate the service charge per unit. NOT, from the amount u invest.

my above exampe to buy 20,000 units in 2scenario.
1. buy the unit and pay the SC additionaly.
2. minus the SC frm amount invest.

its RM10550, NOT RM10,000. read 100 times if u not get it unitl u get it.

the given info is correct.

---

Added on April 27, 2012, 2:33 pmyes, u correct, for MGQP = the amount u invest. ( the SC will be deducted frm the invest amount, if u issue cheque for RM10k, the SC will deduct from RM10k)

well, my calculation is abt SC and the no units purchased. NOT abt the MGQP.



This post has been edited by kparam77: Apr 27 2012, 02:33 PM

ya, its good to hv the manual calculation too for the knowledge.

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