No, it's compounded interest.

Currently outstation, get back to you when my stuffs are with me.

But ES Small Cap 1 yr return is 51.27%, 3 yr annualised is 26.0%, 5 yr annualised is 26.48% which is higher than PM Small Cap. Or is there something im missing?

PM Small Cap:
http://my.morningstar.com/ap/quicktake/ove...ceId=0P00008MIN

ES Small Cap:
http://my.morningstar.com/ap/quicktake/ove...ceId=0P00008MHU

In the 'Total Return' tab, if you look at 3 or 5 years return, yes ES SC is much better than PM SC.
But as I said I look at 10 years, their figure for 10 years are comparable.

Note that there were no major downturn in the last 5 years.

Yes ES SC is much better than PM SC for 3 yrs and 5 yr return. For 10 yr return, ES SC is still 0.12% better.

Plus the Sharpe ratio of Pub-Mut is 0.63 versus ES. Small cap at 1.03 meaning ES SC offers a higher risk adjusted return.

So if you were in my shoes, would you really go for PM SC?

This post has been edited by cybermaster98: Jul 8 2014, 02:41 PM

Recently, I am thinking of repurchased few of my public funds, however, I am thinking of switching to money market fund rather than repurchase. So, I got few items need to clarify.

1. If I partial switch my equity fund to money market fund (more than 90 days), there is not cost involved, right?

2. If I switch back my money market fund to equity fund, does it only cost me RM25? I read it from latest prospectus.

3. If I buy into money market fund, the sc is 0%, right?

4. After I buy into money market fund, if I switch into equity fund, does it charge extra sc or just RM25 as indicated?


Actually I am confuse the switching charge between money market fund and equity fund, hope somebody can help me, thanks a lot.

1. Yes no cost.

2. If your units are loaded-units (IE from equity > mm > equity), assuming you switch back after 90 days, it's RM25.

3. Yes 0%.

4. If you buy into money market fund, your unit are consider zero-load units, hence when you switch to equity funds you will have to pay 5.5%.

1. RM 25

2. RM 25

3. 0%

4. If they're low-loaded units (units from bond of money market funds, you have to pay SC of the equity/balanced fund which is usually 5.5% + switching fee (as per above condition). If they're loaded units (units previously from equity fees but parked at bond or money market funds), then only have to switching fee (as per above condition).

**Each switching will incur switching fee unless you're a member of Mutual Gold.

This post has been edited by David83: Jul 10 2014, 08:31 PM

Dear Unitholder, We are pleased to attach the market wrap and bond market review for the week/fortnight ended 27 June 2014 for your information. Regards Customer Service

Check out my previous post - The RM25 Hotel... to recap:
1. There is zero fee. (Previously a long time ago, it was RM25.) So make as many switches as you like. Another tactic is to switch from 2 or more equity funds and consolidate them into one MM fund, then switch again from the MM fund. Switching from MM has no 90 days restriction.

2. A flat RM25 per switch, regardless of 90 days or not.

3. Don't know. Had only bought directly into bond/income funds, which now cost 1% (previously was 0.25%.)

4. Switching from low-load units to loaded units (ie. equity fund): it is consider a "purchase" and it will be based on the normal service charge, and no switching fee. The service charge is less the service charge already paid on the low-load units. For example, 5.5% minus the service charge already paid - which can be either 0%, 0.25% or 1%.


============
To expand on the tactic mentioned in (1)... say if you have 3 foreign equity funds (all of them more than 90 days old), and wanted to switch all three into one or two local equity funds:

Option A: the usual method would be making 3 switches, costing RM75.

Option B: Make 3 free switches into a MM fund. Wait at least 2 days for the transactions to be updated. Then switch out from the MM fund to the target funds. You would save at least RM25 or more.

Option B also allows to pool the funds together, and divide the total sum into the target funds at any desired proportions without extra costs.


IMPORTANT NOTE: Don't mistake MM funds with bond/income/sukuk funds. Switching into the latter funds, will cost you RM25 per switch, and switching out, if less than 90 days, will be at least RM50 or 0.25% on the value of the switch.


This post has been edited by j.passing.by: Jul 10 2014, 10:24 PM

Some general observations:

Islamic bonds and sukuks seems to be picking up steam again... total growth in the past 10 days... Public Sukuk 0.23%, PB Islamic Bond 0.22%... compare to Islamic MM 0.09% and MM fund 0.08%. On Wednesday alone, they jumped 0.06% to 0.08% instead of the usual 0.01% daily increases. But all these gains can mean nothing if they can be wiped out in an instance... let's see whether today's 25bps increase in the OPR has any effect.

Indonesia Select fund... too late for the party? YTD already around 20%... 3.34% on Monday, 1.20% on Tuesday, market not open on Wednesday for election, and would be another big jump today. Market already moved while both presidential candidates claimed victory... official results out on 22 July.

============
Indon fund up another 2.86%...

Indonesia market also pulling up the ASEAN funds which I've to maintain and wait for them to rebound... lucky to top-up a bit when it went down. Lesson learned: Have faith in the funds you bought, otherwise don't buy them.



This post has been edited by j.passing.by: Jul 11 2014, 12:08 PM

V-zero, David83 and j.passing by, thanks for your reply. I am clear now.

Just one more thing, in money market fund, if there is mix of cash purchase and some switching from equity fund, how to consider when switch back to equity fund. It will take the switching portion or cash purchase portion?

It's a bit complicated as they used "Policy of Lesser Cost" as was explained by one of their customer service officers ages ago. (Gold members have a special line to call and don't have to wait too long...)

Copy and paste from previous post... the low-load units were presumed to have been paid a charge of 0.25%.

To keep things simple, maybe use 2 different MM funds to separate the loaded units from the low-load units. I don't think you can combine all the units together and consider the transaction as a single switch.

I had once made a mistake of doing a full switch out of an equity fund which has both units lesser than 90 days and more than 90 days, and it was counted as 2 switches, with the less than 90 days units incurring RM50. This cost me more than I had expected... if the system considered all the units as less than 90 days; and do a single transaction with 0.75% imposed on them, it would cost less. But no, the system had to do 2 separate transactions...

This post has been edited by j.passing.by: Jul 11 2014, 08:35 PM

Okay, another Paul Merriman article for the weekend... "How 1% can add $1 million to retirement"
http://www.marketwatch.com/story/how-1-can...09?pagenumber=1

I don't quite agrees with all his points in this article, since he was writing for an American audience. Some points have been mentioned in his previous articles and were just repeats. I think it is worth a reminder on starting young and letting compounding magic do its work.

Also another concurrence worth reminding is the 100% in equity funds if you are still in your twenties and just starting to accumulate savings. "In fact, you may want to consider eliminating bonds altogether for the first 20 years that you're accumulating assets." as quoted from Point 1.

Choose and start with a local conservative fund, buy as you save and do constant DCA. Don't get too caught up with the market and moving in and out... as in point (7).

Cheers. Stay invested.

-----------

For a Malaysian audience, I would add the importance of EPF. Don't look down on EPF. It can add much more than 1% to your retirement fund.

When buying my 1st (and only) house, I was fortunate to have a bit of savings and don't have to take out the maximum of what I have in EPF. Most people would take out the allowable maximum amount, without further thought whether they will have excess money in their savings or FD account. The excess amount in savings or FD will earn lesser interest than what EPF would offer. This is the extra "1%" that will make the different, as in the article.

(yeah, I know this post could be more suitable for another thread, like 'Personal Finance Management', but I think the audience in this thread would more appreciate it more than readers in other threads who were mostly looking for fast rewards and quick loans.)

Thanks for ur reply. My case will be simple, use cash to buy in money market fund, then just switch my equity fund to it. When time correct, I will switch it back to equity fund. The cash purchase should be the initial investment only.

u guys ddi already proceed for this month?

just when I was thinking on this subject on stocks and mutual funds, Paul Merriman has written it in his latest article... "10 Can’t-Fail Lessons of Diversification".
http://www.marketwatch.com/story/10-cant-f...14?pagenumber=1

I like his articles because he is not Wall Street or Main Street, though he was both Wall Street and Main Street in his former profession, but he based his articles on Academy Street research and statistics.

This is among his better articles on investing in mutual funds - diversification and the reasons behind it.


"Think for a moment about owning individual stocks. According to academics who have studied the matter, the expected rate of return of a single large-cap growth stock is the same as the expected rate of return from owning all large-cap growth stocks. In other words, there's no statistical benefit from having zero diversification.
However, the risk of owning a single stock is vastly higher than the risk of owning thousands of stocks. One company could fail, but the risk of all companies failing is virtually nonexistent. "

It is a powerful statement on owning stocks versus mutual funds.

Cheers. Stay invested.

PS. "Nine: If you own a properly diversified portfolio, you'll always be represented in the current market-leading asset classes. No matter which major asset class is making the headlines, you'll own some of it. You won't be left out. The obverse of this is also true. Whichever asset class is currently lagging will also be in your portfolio. This may test your faith." And I wrote about having faith in the funds you bought in my previous post. Great minds think alike. LOL.

IT this pb islamic equity fund good? tq any comment? i just bought rm5000 on yesterday My fund agent recommend me to buy

I wonder how you're going to react if the answer is no. Scold agent, sell or suck it up and do nothing? What will you do?

(If the investment is from EPF, that's the only equity fund you can buy in PB series... no other choice.)

I type a wrong thing i want to buy on tomorrow not. yesterday so i come to ask the comment from forumer

Look into the Public series... more choices on the local equities.. I would suggest POGF or PISEF or even Public Ittikal as a 1st fund. All of them are also EPF-approved funds. The suggestion was made on basis of their performance YTD, for more performance analysis, please refer to the MorningStar website.

The Public series has more funds, and it will be easier to diversify and add on other types of funds.

Edit: correction on the fund's initials.

This post has been edited by j.passing.by: Jul 16 2014, 07:19 PM