Thats whats im getting at..spread out the risk thru diversification..hehe..neway cherroy boss do u recommend going for fund such as PIOF? many thanks

Spread out the risk /= lower risk than stock market.

The stock market risk is still the same.

Sorry not appropriate to recommend whether which fund is good or not.

aggressif and looking for better yeild than FD only.

u r conservative not aggressif.

buy bond funds for safety..... equity funds not recommened for 4 yrs at current market condition FOR LUMP SUMP INVESTMENT.... my opinion only.

waht is ur agent said? how much the return will be?

this fund mainly buy small caps comes with high risk high reward.

it is better to hold ur money first until the GE, or as i suggest, start wiht rm1k and top up regularly.

lets say during GE, market crashed, u can top up the balance. not guarantee abt the returns. but 8% compunded p.a is good already eventhough not the best.

suggestion only.

actually i want capital gain+dividends of >12% p.a

i tak berani cakap >12% p.a eventhough im an agent. its depends on how the fund perform. 8% is realistick. if u get 12% is a BONUS for u.

kinda agree with u..but for 100k investment (public mutual gold) can switch for free aite? if market not good reaching GE date can switch to bond funds rite?

if u focus on MG, what is the diff within next 6 months? i thought ur main concern is better than FD return in next 4 yrs. why u need to switch to bond if u aggressif? you shud take oppornunity to top up another 100K.

she said that PIOF is very good and performing..since july till now capital gain already 7%..sounds like bullshit but the quarterly review from prospectus supports the claim

ofcource the fund is very good fund. and it still depends how the fund going to perform in the future. and ur time frame is short, 4 yrs. and current market is high. if current market is down, yes, no issue if u pump 100k. but dont ask me, how down is down, very subjective.

8% p.a u stated including cap gain + dividend or what bro?
yes, go to how to calcualte UT in my signature.


all the delay with GE is really a headache....fXXk ah jib gor..heheh

no worries, soon, u r only 25 yrs, spend some time to read/analyse/research market before make decision. its not only local factor will affect the market. external factor too. who knows market is down for a few days, its may continue. so, dont hurry to sign up lump sump yet.

local funds recover faster.

Does the theory of mutual fund dividend the same as of share?

Do U mean the mutual fund distribution theory where:
eg
a. Just before $0.10 distribution, NAV = $1
b. Just after $0.10 distribution, NAV = $1 -$0.10, $0.90
c. Fund holder gets $0.10 cash per unit less tax
Thus, what's the point

If U mean the above VS stocks' dividend, it's SIMILAR but not exactly the same.
ie.
for mutual funds' distribution dividends, it's a "perfect calculated" NAV price
VS
for stocks' dividends, a stock's market price "ex-price" USUALLY goes down after the date for dividend.
BUT keep in mind that a stock's market price is based on bids/offer of thousands if not millions of people, NOT a "perfect calculated" price.
Thus, a stock's market price is totally based on perception of people and CAN GO UP EVEN RIGHT AFTER EX-cluding dividends.

My 2cents thoughts

This post has been edited by wongmunkeong: Sep 12 2012, 06:02 AM

Thanks a lot for your reply. But i still don't understand...

Which part do you not understand?

Xuzen

er.. let me guess..
U didn't understand:
a. ex price of a stock?
b. that the market price of ANY stocks in any stock exchange is based on bids & offers, like an auction, of thousands and millions of people?
c. the underlying assets of a mutual fund and how its NAV is derived?

If U understand what the underlying assets are in a mutual fund, say an equity fund
AND
U understand what is a stock and how it's "price" or value is "created" or "stated" in a stock exchange
THEN
U should be able to understand that all prices on a stock market is PURE PERCEPTION of thousands and millions of people bidding to buy & offering to sell on stocks' prices.

If U don't know (a), (b) or © or a combination... er... sorry ar, thought U understood the bare basics before asking such a changgih Q on dividend distribution effects on mutual funds VS stocks.

This post has been edited by wongmunkeong: Sep 12 2012, 09:45 PM

I don't understand these 2 sentences:

BUT keep in mind that a stock's market price is based on bids/offer of thousands if not millions of people, NOT a "perfect calculated" price.
Thus, a stock's market price is totally based on perception of people and CAN GO UP EVEN RIGHT AFTER EX-cluding dividends.

Read more bro... To find reason why Unit Trust are lower risk...

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Added on September 12, 2012, 11:29 pmIt was too long if want to explain... It has the ecology if i am not wrong... Investment is an art... So let's read through th rythm...

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Added on September 12, 2012, 11:36 pmDo not judge the books with it's cover... Nothing is 100% safe in this world... As by nature it was temporary.... With gifted brain let's us learn and think how to minimal the bad impact.

This post has been edited by techie.opinion: Sep 12 2012, 11:36 PM

assume stock A price rm1.00

dividends rm0.10

next day open at rm0.90, (unker wong, xuxen, correct me if i wrong)

but if any bid to buy at rm1.00 and transaction done, the price will be closed at rm1.00 again if seller bit at rm1.00. that is base on 1 transaction in a day. but bidding price could be diff. buyermay bid lowerthan rm0.90 and seller may bit higher than rm1.00. when both buyer and seller bid match, the trasaction will be done.

(unker wong, xuxen, correct me if i wrong)

while UT, if dividends is rm0.10, the next day open with rm0.90,closing price will be calculated base on FUND VALUE / UNIT IN CIRCULATION.

UT are lower risk?

Speak this to those invested in China related fund back 3-4 years ago.
Speak to those invested in global properties equities UT 3-4 years ago.

What equities UT holding in their portfolio?
Listed stock market shares or other lower risk asset?
Listed stock market shares is lower risk?

People will be surprised how many people out there think UTs have lower risk because the fund is managed by "professional" fund manager.
End up what?Some of the China related fund is performing by public mutual is worse than the shanghai index alone.

U guys

Pls understand the meaning of "risk"

Risk simply means, the magnitude and possibility of losses.

Lower risk simply means, when u lose, more likely than not u will lose little, similarly, when u profit, more likely than not u will profit little.

U buy 1-2 stocks on your own, if u get it right, its very rewarding. Similarly, if u picked laggards/big time losers, u will lose money even when the general market is goin up.

The more stocks u buy, the more likely ur returns will be similar to that of the index.

Kparam hit it right. So Debbie, do you understand now?

BTW Kparam, it is xuzen, not xuxen... it is pronunced Susan, actually my wife's name.

Cherroy, UT is a collection of individual stocks and the formula for the portfolio risk aka variance is (W1.R1+W2.R2+....Wn.Rn)^2. Where W is the weightage and R is the stock return.

When you expand the equation, the Std Dev is average of all the weighted components. This is to prevent one from picking the losers but also it prevent one from picking th winner. Hence, from a risk management point of view, this risk trade off with return is an acceptable gamble.

On one hand, the fund manager for Pub-Mut China esp PCSF fund should be dragged out to the courtyard, shot, hung, drawn and quartered (an English Idiom) for the cold blooded murder of their fund. How can one, when actively managing the fund, perform below the benchmanrk i.e. the baseline. Stupid fund manager.

Xuzen

Yes, but personally I do not dare to say UT is low risk investment.

More stocks means average out, while individual that has sufficient fund also can buy 10-15 stocks like fund managers do.

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Added on September 13, 2012, 10:23 amYes, I understand, just I do not agree the term being put on UT as "lower risk". It can give wrong impression to newbie in investment.

UT has exposure to stock market, when stock market is viewed as high risk place, then UT also does, just return/loss of UT is averaged by total number of stocks holding instead of one or two stocks.

If UT is lower risk investment class, it shouldn't be having a performance of loss 30-40% after 4-5 years.

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Added on September 13, 2012, 10:26 amI give a simple scenario.

I bought stock A - high risk
I bought stock A + B + C + D + E. Does it means now I am at low risk?

This post has been edited by cherroy: Sep 13 2012, 10:26 AM

If ur A B C D E are all underperforming stocks, u will lose more than if u were to buy an index fund