RM0.95.

BOND must give disribution, because its a annual income funds. NOT capital growth funds with incidental policy.

i think u still confuse abt disribution. let me brief.



2 type of benefit in UT.

1. capital grow.
2. annual income. or distribution or dividedns to make it simple to understand.

pls read this first. http://pk31-tips.blogspot.com/2011/10/how-...unit-trust.html



if u want ur money grow and plan to reinvest the distribution. go for those funds has tis tybe of objective, something like capital grow medium to long term. normaly capital growth/agressif funds in this catogary.even moderate funds in tis catogary too. u MUST understand the fund objective first.



if u want to take the dividedns and plan for spend it, go for those funds focus on annual income or divideds. bond funds or dividedns funds.

normaly i will advice my client to focus on their goals in growht funds. after achieve that, than only switch to bonds so can get dividedns annually. or u can use bonds fund for emergency parking for ur lock profits.



example retiremnt plan: if ur goal is to achieve rm1mil. use wahtever stategy to max ur money to reach RM1mil.

after u retire, switch ur money in bond fudns where the min RM0.04 to RM0.05 may be declare as distribution(but not guarantee too). so, u can spend the disribtion without touching ur capital units.



or switch to dividends funds where the distribution may declare min rm0.01 to rm0.02 (but not guarantee too).

take note BOND funds IPO is RM1.00, dividedns funds IPO is RM0.25. that why if u compare dividedns fudns distribution looks cheap than BOND funds.



if u buy bonds funds for RM1 per units, u will get 1mil units.
if u buy dividends fund rmRM0.25 per units, u will get abt 4mil units.



re-invest the distribution is, u give instruction to company to auto buy additional units using ur distribution amount.

if u hv 10,000 unit before disrtibution. the distibution will be declaare from 10,000 unit itself. the quantity of units never change. when u re-invest, u r actualy buying additional units using ur distribution amout. tis additional units + with ur initial units will be more than 10,000.



that why u will c ur fund value almost same before n after but ur unit are increased.

so, disributions dosent make any diff. the main thing is capital grow. so, which one u focusing now? capital grow or disribution. dont choose wrong fund VS ur objective.

PLS READ MY DISCLAIMER.

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Added on April 8, 2012, 9:20 amtis fund is aggressive with high volatility.

investor profile shud be:
aggressive risk-reward temperament,
medium to long term investor.
can withstand extended periods of market high and lows in pursuit of capital growth.

if u understnad and can withstand extended periods of market high and lows in pursuit of capital growth, u may hold. or accept the losses and switch.

read the prospetus first (page 75)before make decision. http://www.publicmutual.com.my/LinkClick.a...WA%3d&tabid=105

pls read my disclaimer in my signature.

This post has been edited by kparam77: Apr 8 2012, 09:20 AM

correct because the distribution amount will be used to buy additional units.

so, the value almost same but diff in units.

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Added on April 8, 2012, 9:38 amit must be a reason to top up. ask her why need to top up.

normaly if the unit price is cheap, top up is good for getting cheaper price and more units.

- u must know where ur money is invest.
- the asset allocation.
- current market condition and expected future market condition.
- fudn risk factor.

ask more question to ur agent. the more u ask the more knowledge u will get.

no shy shy ask Q. u r the boss.

This post has been edited by kparam77: Apr 8 2012, 09:38 AM

it depends. if a retire sign up for annual income funds like BOND funds and plan to receive the distribution annualy base on their plans.

and also not all the investors re-invest the distribtuion. some hv plan on the distributions too.

so, no choice to avoid the TAX.

there is no best and no worst in UT. its all depends on it performance. for past 3 yrs PISEF give better return than PIEF. both fund objective diff/ diff fudn size/diff allocation.

pisef is new fund than pief and it was launch during market downtrend in 2008. pisef local fudn, thats why it recover fast during recover., pief up to 30% may expose to foreign market. maybe foreign market not doing well.

both also allocate some money in sukuk/ shariah based liquid assets too. pief min exposurer in equity 80% where the rest may allocate in sukuk/shariah based liquid assets , while pisef expose up to 98% in equity. so, risk in pisef is higher than pief.

so, u hv to choose which want u want. read/understand the prospectus, risk factor too.

PISSF, will be open when the units are availabes. but not sure/guarantee since new funds in the markets.

if u hv PM online, choose the fund u want next, next next, transfer money online... done.

none for company with no agent with same serive charge. comapnt will take all service charge. so, its better hv agent for newbies. but u can for none if u well understand enuf abt UT.

equity funds for current market condition? lump sum or regular?

its good to make use tis epf invstment scheme. but its not a good time to enter equity funds now. waht u can do is open an acc in Public select bond fund. for temp parking. later u can switch to equity funds when the unit price are cheap.

my thoughts only.

so far 2 company - philip capital and Apex, can use epf money to but direct stocks.

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Added on April 16, 2012, 4:31 pm

i thot public ittikal quite cheap now?

[/quote]

i personaly feel not so cheap since 50 - 60% in local markets. still can wait for better entry.

my view only.

it's a suggetion only, no right no wrong.
market may goes down during election, so can buy units for cheaper price.

invest in UT is with ur own risk and no guarantee in UT. its clearly stated in prospectus and fund review.

no dividedns in UT. its call distribution (if any). UT profit = Total return = capital gain + distribution (if any).

yes, UT has risk determine the returns. higher risk = higher returns.

if u want to make more than 6%, u can manage ur EPF money in UT by urself. UT agents can guides u.

EPF INVESTMENT SCHEME allows you to manage ur money by urself.

yes, UT capable to give u more than 6% returns and it depends on ur risk tolerance and the fund performance u choose.

go to epf scheme in my signature for better understand UT EPF SCHEME.

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Added on April 24, 2012, 11:43 pmif u dont want to take the risk, better keep ur money in EPF.

This post has been edited by kparam77: Apr 24 2012, 11:43 PM

no interest rate in UT. its call distribution(if any) frm the total returns.

u opt for monthly regular investment (DDI), where u get less unit for higher price and vise versa.
by this method u will accumulate units over the time without worry abt market trends. ur average cost per unit shud be cheaper than market price to make profits.

buy cheap sell high = profits

also, if u opt for re-invest the distribtuions(if any), u will accumulate more units (because u r buying more units using ur distribution amount without SC), and it will help u for cheaper average cost per unit.

the returns in UT depends on price (NAV) movement, not the inretest/distribution.

go to how to calculate UT in my signature for better understanding waht i mean.

SC = Service Charge.

I think u confuse abt interest rate, dividends and distribution.

Interest rate – given for bank deposits.
Dividends – in EPF / stock/ Koperasi.
Distribution – in UT.

For ur info, initially in UT its call dividends too, lately the term change to distribution. (Cherroy correct me if I wrong)
Normally UT agent use term dividends for better understanding even though dividends and distribution NOT the same.

That why I ask u to read my blog abt how to calculate the UT for better understanding.

But it is NO way in PM statement says abt dividends.

it depends on investors objective. need distribution or NOT need it.
if investors go for annual distributions, YES, it is meaning for them.

yes, it is meangless for those put capital grow as 1st priority.

2 type of benefit from UT at.... http://pk31-tips.blogspot.com/2011/10/how-...unit-trust.html

so, investors shud know waht is their objective, capital grow or distribtuion or both before choosing the funds which are stated in master prospectors.

some funds focus on capital grow (growth funds) and put the disribution in 2nd place.
some funds focus on distribution/income (like income funds/bonds/MM/dividedns funds) and put the capital grow in 2nd place.

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.

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.