You're right.

A wise investor would pump money right after dividend payouts to get the most of averaging.

NAV would drop but I'm not selling my units right after, it'll recover in future.

i think a wiser investor would pump money right after unjustified knee jerk reaction sell off to get the most of averaging....

NAV would go side-way or stayed down too in future...

i think a wiser investor would pump money right after unjustified knee jerk reaction sell off to get the most of averaging....

NAV would go side-way or stayed down too in future...

What is the difference between PRS and PRS public mutual?

Prs is UT but unlike normal UT, this one need to hold until retirement. PRS public mutual means the PRS is sold by public mutual lo. Avoid all public mutual funds.

So if i want to open PRS account, dont open it under Public Mutual?

All PRS funds are regulated by PPA.
You need to have an account with PPA first.
Normal PRS providers will help you to create one if you buy a PRS fund from them.
PRS is just like EPF but working mechanism is like UT.

This post has been edited by David83: Mar 22 2017, 05:51 PM

Noob question, do we need to contribute each month?

Not. It's up to you!

If you want PRS, if you can open with any PRS provider.

there are only 8 of them anyway.

If you do get Public Mutual PRS, well, you will be charged 3% sales charge.

Whereas if you explore other options with other PRS providers, you may not need to pay that sales charge. Example will be opening account with Fundsupermart to buy PRS with the other 7 providers.

Long story short, if you buy from a sales person, likely you will need to pay sales charge.

Ouh okay. Thanks for the info.

However, unit price of PM prs funds are lowest. But with 3% charge. Happy choosing.

What do you mean by knee jerk reaction here? Plain english please.

NAV go down case, if averaging works right, cost per unit can be lowered too. That's the risk in investment it's normal.

Fund prices lowest means "cheapest"?

Don’t Judge A Fund By Its Price!
Investing Basics
It is a common misconception for investors to believe that a lower fund price makes a fund ‘cheaper’. In fact, whether a fund is expensive or not depends strictly on the valuation of its underlying stocks or bonds within its portfolio perform; the unit or the NAV price of the fund bears little significance.

wow,...with that got 3% SC some more...really happy choosing lor


I googled and found this knee jerk reaction in investing meaning in simple plain English...hope it helps....
https://www.google.com/?gws_rd=ssl#q=knee+j...sting&*&spf=734

if you keep buying when the NAV go down, ,...soon you will be out of money to buy....
do you know how many times does the Nav of a funds fluctuates more than 1% per year?
unless you are in MM funds

1% down is also NAV go down case...cost per unit is lowered....



This post has been edited by MUM: Mar 22 2017, 10:20 PM

Unit price may be lowest but if they cannot outperform their peers? What's the point of buying then? Something ot think about.

Eg.
PM PRS return of 3-4%
Cimb PRS return of 10-12%

NAV of the fund is not important in this case.

Lots of folks complain we don't use plain English heheh - i feel U.

U good, have the patience to explain/clarify + even google link - especially to folks that "chase low NAV" not knowing what NAV constitutes & fund's distribution impact to NAV (with no value to investor whatsoever).
Respect

Just wondering.

Option 1- PRS
If I opt for PRS, I only manage to get all my investment after 55. Since this is no guarantee income coz depend on market. I may end up loss the money after retirement.

Option 2-Non PRS
I buy the fund by using fundsupermart, and I can withdraw my money anytime after reaching my profit target and before the market is collapse (assume). In the event for emergency, I can withdraw money immediately.

Above situation assuming that I do not entitled any incentives with age above 30.

Please provide any input and share your opinion.

Most of us have a combo of Option 1 & Option 2 or perhaps more than that including other kinds of financial investment instruments.

But majority of us go for Option 1 with min required investment capital/amount solely for tax relief purpose.

correct. tax relief til 2021

still have 5 year to go