Asking of distributions, between bond fund and equity fund. Is the distribution same?

I mean the bond fund distribution will not affect your total investment value. Just the unit. In equity fund, is it the same as bond fund OR it's like share (ie: interest/return)- meaning, even if we CHOOSE not to reinvest the distribution, equity investment value stays the same (which is not in bond fund case).

I'm starting to be a little confused.

This post has been edited by dewVP: May 8 2012, 10:03 AM

You can "CHOOSE" not to reinvest the distribution?

Yup. Why not? During your initial investment of each fund, they ask you that question. Although I'm sure most of the people would reinvest.

So back to my initial question.

distribution will work same in UT for all the funds. if u choose to re-invest, the investment value will be same or almost same ( after calculalte the net distribution).

investment value (total retrun) = capital gain + distribution

if u choose for NOT re-invest the distribution. ur investment value will be affected, meaning;

investment value (total retrun) = capital gain - distribution.

Hi all, i'm new here. I wanted to invest in public mutual, what is the first step i need to do? So far now, i din own a public bank saving account. if let say i open a public bank saving account, can it link with public mutual?

1. read the master prospectus, understand it, choose which fund is u interest with ur risk tolerance.
2. go to any nearest PM branch, or look for any agent.
3. if u plan regular investment, open an acc with PB. and give instruct for SI.
4. or, if u want to top up when u hv money, yes, u can apply PM online and PB online to transfer money from PB to PM online.

oic.. okok... tqvm

Hi there Mr Confused-Again-About-UT-Distributions

Hi again. Equity fund this time

Hope all is good over there with the rest of the guys.

Distribution for Bond funds is on annual basis. Equity funds are usually on "incidental" basis; meaning there is distribution when the fund is doing well. Dividend funds are usually on annual basis.

You can check out their Distribution Policy in their prospectus.

Technically, the net asset value of the fund is unchanged after a distribution.

If you reinvest the distribution back into extra units (instead of cashing out the value of the distribution), the total value of your fund is the same as before distribution since the unit price is now slightly lower although you now have more units.

But normally there is a slight minimal difference as you would then be checking and multiplying your total units against the closing price of the following day; and the closing price would depends on the fluctuation of the stock market on that day.

Yes, it is unexpected.

Public Far-East Telco & Infrastructure Fund's distribution policy is 'incidental'. Although it is in positive territory since its commencement since July 2008, it had declined more than 20% in the past year.

(Only those investors who had bought in during the dip around end Sept. 2011 would have profited.)

Though the net asset value of the fund remains unchanged after a distribution, there is tax on the distribution.

(BTW Unit splits have the same effect as a distribution.)

sharing only:
assume the NAV of the fund is RM1 bil and the distribution is RM100 mil.

the fund NAV value will be rm900 mil because rm100 mil already payout as distribution. so, there wil be change in the fudn NAV after the disribution.

if the all the distribution re-invest back (NOT all the distribution wil reinvest back because some investors will opt for take the distributions). its could be almost same prior to the closing unit price the next biz day. and it still depends on how many units re-invest back.

of cource, if calculate from individual acc, and re-invest the distribtuion, the value will almost same before and after.

check v u...beside PB, what others bank can do SI?

This post has been edited by rkg38: May 9 2012, 12:13 PM

maybank n BSN.

kparam77, may I know what is SI?

Standing Instruction.

Understood.

"Technically, the net asset value of the fund is unchanged after a distribution."
It's suppose to read the net asset value of the fund 'you are holding'; as I was writing from the viewpoint of an investor, not the company.

The total net asset would, of course, be less after a distribution, after taking into account the pay outs and management fee and tax.

The important point is that as an investor, if you're waiting to sell, you don't need to time the transaction to be after a distribution; as the NAV is reflected in the unit price at all times. Selling a day before or after the fund's year-end date is the same - barring market activity the following day.

Can anyone explained why there is distribution in Public Far-East Telco & Infrastructure Fund as it was in decline the past 12 months? Is it making money to declare a distribution and hence pay tax?

Or is it money held in reserve from its profitable period over 2-3 years; which then makes "the NAV is reflected in the unit price at all times" invalid.

What's the diff between PM and PB? To be clear,
I don't have any public bank account. Only maybank.

So what I need to do now?

come dew dew....

come sign up... i explain...

***tips*** wipe off what you understand.

Use your money buy UNIT trust fund.. you get total UNIT. The UNIT is your asset u bought...

Work from there.. Don't see the value first.. or you will get confused..

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Added on May 9, 2012, 3:45 pmcome come.. let me guide u

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Added on May 9, 2012, 3:48 pmPM via agent
PB via counter

Maybank is ok if do reinvestment.

You need to find and talk to an agent Agent will help you gauge your exposure.

This post has been edited by Stimx: May 9 2012, 03:48 PM

PB = Public Bank.
PM = Public Mutual. The mutual funds company that is under Public Bank. There are mutual funds operated by other banks too.

You need to approach a UTC (Unit Trust Consultant) if you are a new investor. The UTC will then explain, fill forms, etc.

There is a cooling off period for a first-timer.

Public Bank has it own funds too. The fund names begin with PB. They are sold through its banks, while the Public funds are sold through Public Mutual. Look into its website to find the locations of Public Mutual branches.

As a new investor or first-timer and if you're buying into a PB fund, go to a Public bank and ask to see a consultant/bank staff (I don't know their official title ) who will go through all the forms with you as a UTC would do in Public Mutual.

It would be handy if you have a current account and has a cheque book. Not sure how it is done using cash in Public Mutual branch (maybe you or UTC will need to pay at a counter and get an official receipt); but at Public Bank you pay at the cashier's counter.

(Edited to correct my english. )

This post has been edited by j.passing.by: May 9 2012, 04:22 PM

any charges for SI from this 2 banks?
is it the same option available, 8 or 18 of the month?