Public Mutual’s RM118m distribution for 5 funds
URL: http://www.theedgemalaysia.com/business/19...or-5-funds.html

Distribution for PSMALLCAP is 12cents.

maybe this has been discussed before...
but from what i observed personally...once the distribution is announced.... the price per unit for the fund will drop as well...eventually...you don't really get any 'dividends'....merely you get more units with equivalent price, NAV?

For a minute, I thought you bought that marketing trick, haha...

That is actually the concept of a clever marketing gimmick. It makes the units look "cheap", and make people think they are getting a "big payout".

It even fools people who are "opting for payout, that's something to think about" to think about things that are irrelevant. If you want a payout, just re-invest and withdraw the number of units you want, whenever you want. You have full control, no need to waste time thinking about things which are a waste of time.

Rm120,000 will be taxed...

I bought PDSF (select dividend fund) at average cost of RM 0.32 few months back , now ITS RM 0.26XX.
Yesterday, I invest some $$ into Public stregic bond fund.

1) Is PDSF a good fund ? What public mutual fund / NOT public mutual fund u recommended ?

2) My agent tell me to pump more $$ in PDSF ? but, I m quite reluctant to do so since it is already loss...

3) what should I do on this fund ? Hold on ? Invest more ?

4) Is it possible to save on the 5.5% service charge or discounted ? And its annual fees.
Thanks

howszat, I would like to comment on your last sentence. If you reinvest and withdraw the number of units after the distribution, you don't lose it's value, but you are losing the MQGP. You lose the status (if you're a Gold Member) in a way.

actually do we really need to take a look on distribution? cause the distribution is given from our share also?

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

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

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

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.....

Seem a lot of choice, don't know how to choose

Public Islamic Dividend
Public Growth Fund
Public Saving Fund
Public Bond
PB Indonesia Balanced Fund
Public Focus Select Fund
PB Fixed Income Fund
Public Strategic Bond Fund

Bond not effected by market right ?

How to choose ? which one can RI, DDI ( SI ) ?
Difference between annual income and Distribution ?
What is YTD ?

I'm new to unit trust. Appreciate for any guide. Thanks.

does pmutual have pure captal growth fund ? eg no distributions only focus on capital growth only ?

I supposed you are an agent.

I have been attending sales talks or fund launching by some of my agents, who NEVER miss letting us know EACH fund Public Mutual launched is good. Public Mutual has a series of funds, which of them, particularly equities are doing good? Those who have bought the funds in 2008 during the market bad times and have been keeping these funds (as claimed by agents that these are for retirements) until now would have nearly seen a bracket on their investment profiles.

UNLESS you are investment horizon is more than 10 years, I would recommend other instrumental. You can consider a BOND fund series rather than an equity. Or if you are a supporter, try investing with your EPF (as you would have > 10 years horizon then)

yea.. i just went to public mutual, an agency manager keep asking me to buy only. i was asking her lots of questions regarding the quarterly report etc, she just said it was past & it dont mean anything, as long as now i want to earn money. she kept telling me the price drop alot ady, now enter sure earn, plus she got 17years experience bla bla bla

AirAsia is the biggest shareholder of Malaysia Airlines now. Oh boy..

Good point on question number 2. every investment needs to have entry and exit strategy to avoid significant losses. i personally was a PM agent until about a year ago. Invested in Public Ittikal (PITTIKAL) and PCSF (Public China Select Fund) the moment i started working in 2008. i used DCA of RM100/month on both funds and sold them last year for a realized gain of around RM2000+ excluding distributions. sold all of investment in PM to fund a property purchase instead and IMHO i think investing directly in stocks will net better gains in terms of dividends and capital gains. just do research and ask around to construct a portfolio that suits yr needs and goals.

however, i'm not saying one shouldn't invest in mutual funds or any actively managed funds whatsoever as it was because of PM i got some money to fund a property purchase. choose wisely though. don't let its marketing fool you. nowadays, not only PM but all the other fund companies are launching funds and more funds to grab market share and retail investors like us. it's like a boutique investment house that instead of adding value to the investors are just interested in gaining as much as  possible from the public. my advice would be:

1) choose funds with consistency and sustainability in terms of return and cap growth. i.e: 10 year record e.g: PSMALLCAP, PITTIKAL. PBOND and etc
2) a good fixed income instrument is their bond funds. avg return per year is around 6-8%. choose wisely. again refer to point number 1.

just my 2 cents...hope it helps.

P.S: no offence to anyone or any agent of PM or any actively managed fund company. pls accept my sincere apology if i did offend you in any possible way. 

I supposed you are using DDI for DCA strategy. DCA is a good strategy in principle. When you do DCA on Public Mutual funds, you got charged 5.5% for their fees, which at least takes you sometime to get that % back (assuming 1 year return is 6-8%)

i think she just know how to compare the price before and after. actually i went there to get some hardcopy data, she dont even has those. i kept telling her that the market is so unstable now & the probability of the market wil drop further is quite high. then she kept telling we cant time to market, so buy now as the price is so cheap. she recommended PUBLIC CHINA TITANS FUND, PUBLIC ITTIKAL FUND,PUBLIC AUSTRALIA EQUITY FUND if not mistaken.