Go for it!

nah I'm lazy to be TS for important thread

Haha.. U got potential..

U are more than happy to quit for good

guys, im new to UT but have been studying abit of it and start looking at the performance chart. just wondering is it a good time to start investing now? :/

Do's and Don'ts of Choosing a Unit Trust Fund

Do
•Decide which type of unit trust fund meets your saving needs.
•Shop around for a reliable unit trust company.
•Check whether investment limits and frequency of income payments are suitable.
•Check past performance records.

Don't
•Don't choose any unit trust fund just because its performance was good. Instead, make sure the fund meets your risk appetite and financial goals.
•Don't pay too much attention to short term performance as good consistent performance over all periods is the best lead.
•Don't decide on a unit trust fund simply because it has low charges. Strong management of the fund is far more important.
•Don't borrow to invest in unit trust unless you are absolutely aware of the risks involved.

http://www.publicmutual.com.my/Resources/U...ustLessons.aspx

To all sifus,

I'm new to unit trust. Currently I'm holding fund below. Mind to give some comments or opinion on how to build my portfolio.

PEBF (PUBLIC ENHANCED BOND FUND)
PBAREIF (PB ASIA REAL ESTATE INCOME FUND)
PFETIF (PUBLIC FAR-EAST TELCO & INFRASTRUCTURE FUND)
PBCPEF (PB CHINA PACIFIC EQUITY FUND)
PSSCF (PUBLIC STRATEGIC SMALLCAP FUND)

RM10K in each fund..

This post has been edited by johnchew91: May 6 2015, 02:48 PM

you are new to Unit trust and yet you managed to buy 5 of these? may I know who recommended you bought those? (my personal thought about most of these funds are very specific focused funds...high risk high return things)

My previous PM UTC asked me a lot of questions and have to fill up some sort of suitability assessment quiz before I was recommended some UTs for my consideration.
may I suggest that you ask your UTC, while waiting for responses here. (maybe have to wait longer...there was a post#2902 had yet to be responded since 23 Apr).....

in the meantime try reading some of these if you want...
What Are The Three Rules Of Investing?
Choosing A Professional Fund Management Company : Why Can't I Do It Myself?
Selecting The Right Unit Trust - How Do I Find A Unit Trust That Fits My Objective?
Why Do I Have To Spend All That Time Reading A Prospectus?
http://www.publicmutual.com.my/Resources/U...ns/Lesson8.aspx

Do's and Don'ts of Choosing a Unit Trust Fund
http://www.publicmutual.com.my/Resources/U...ns/Lesson7.aspx

what should you expects from a UTC?
You should expect the UTC to deal with you in an open, honest and professional manner. The role of a UTC is to actively provide information during his “interview” with you and thereafter, on an ongoing basis to review your portfolio of unit trust investment as and when the economy or your personal circumstance changes. He should recommend portfolios that best suit your needs, personal circumstances and financial goals.
https://www.fimm.com.my/investor/faqs/

I am not a UTC...therefore not qualify to advise thus not a sifu too

This post has been edited by MUM: May 6 2015, 08:49 PM

q1. Why the combinations, selections?
q2. Do we understand the features of each?
q3. When we have these 5 in our portfolio, whats the correlation of them? Basic q wud be like, if china is down, how will others fare? How much impact will ur whole portfolio, if lets say properties mkt go thru a 5yr sleeping period? Are u ok to see ur protfolio goes sidewyas or down? Do u know, or ur agent know what to do when that happens?
q4. confirm ur appetite and time horizon...each of the funds there may have different horizon, as some of them r cyclical, some are country focused...eg china based, only to came up recently...after sleeping for so many years, if u take a look at its 5-7yrs graph...

Juz some of the questions it came up to me...might be a good time to meet with ur banker or agent if u have the same thg wondering too

In unit trust, it is better to just start investing as early as possible rather than trying to time the market as the more you delay, the more you lose out in building wealth for yourself. Unit trust are best focused on long term performance rather than speculating for high short term returns. In long term, unit trust is an excellent way to build up your wealth and it is very unlikely you'll make a loss in comparison to most types of investment.

Try doing a dollar cost averaging (DCA) instead of timing the market. DCA is an investment plan/strategy where you do monthly deduction to invest in a particular fund or investment porfolio.

For example if you do DCA of RM 100 per month, you buy RM 100 worth of units on Jan, Feb, March and so on. You'll continuously buy units regardless of the time the unit is at it's cheapest or the most expensive. By the end of it, you'll generate good positive returns as all the investment is averaged out as long as the fund performs in the long term (which most unit trust will).

DCA is a very effective way if you want to build up wealth. If you want to go one lump sum, I would suggest at least make sure your investment horizon is more than 5 years, preferably 10 years, unless the investment amount is not that big.

In terms of asset combination I think this portfolio is great. The asset is pretty well balance with some industry focused fund, real estate and bonds.

In terms of region exposure, this portfolio is pretty problematic as another Asian financial crisis might destroy the whole portfolio considering how Asian focused it is.

I would recommend changing 15-20% of your portfolio to funds that is focus on global investment and 10-15% on developed countries focused fund.

Unless you are sure you can tolerate the risk, be my guest though.

Just came across another good article from MarketWatch... "6 ways Vanguard has changed the way people invest."

http://www.marketwatch.com/story/6-ways-va...15-05-09?page=1

1. FYI, Vanguard is a fund company in USA, with very low fees.

2. 3 of the points is on why people choose to invest with Vanguard:
"Costs matter" - it gives the best value to its customers.
"Avoid complacency" - it constantly improves its method of doing business.
"It’s best to ignore trends, fads and..." - its sales is not market driven, but based on sound investment ideas.

3. The other 3 points is how its customers grew rich with Vanguard:
"Starting small leads to finishing big" - it is never too early to start saving.
"You must invest regularly" - Saves and invests as you earns.
"Patience matters, too" - never wavered from fundamental belief that doing the right things pays off in time.

Cheers. Keep investing... regularly.

1 if the fund is actively managed be it vanguard or any other mutual fund giants or minnows-the cost wont be low.
2 in addition one has to subscribe to a financial theory that no one can beat the market except outliers like warren buffet and his mentor benjamin graham whose investment prowess proves that the market is not efficient afterall
3 a 1000 usd invested in buffet hathaway berkshire fund in 1965 is worth 278 million in 2004.the cagr was 21.9% compared to the average return of 10.9% for the same period.yes indeed start early and revered at the marvellous gain in just 30years.

i disagree to rule 3 of the donts in mf investing
expense ratio/turnover rate/capital gains plays a crucial role in the cost of your investment and can significantly impact you return over the long term. assuming that the cost of this instrument is 3-4% of the total fund annually -this literally means the fund managers bettter deliver a MINIMAL consistent cagr gains of 3-4 % above the benchmark index to justify their not inexpensive fees
historical evidence suggest that most fund managers underperformed the benchmark index over the long run

noted...
just up to individual the believes what he wants to believes.
just like some believes that "historical evidence suggest that most fund managers underperformed the benchmark index over the long run" does not applies to some local funds.
because they believes some local funds are hitting their benchmarks frequently.....and are very happy with them already.

This post has been edited by MUM: May 11 2015, 07:55 PM

well its not a hearsay or voodoo science -its a fact that actively managed funds fails and fails miserably over the long term to beat the benchmark index is simply becos of the exorbitant mutual fund fees.
well what 'frequently' means in your assayed or assessment of mutual funds?
you mean local funds are not in for the marathon ? implying that they are all for short term bets ?anyway whats the time horizon of those 'coveted'funds?

This post has been edited by lizardjeremy: May 11 2015, 07:58 PM

what is the number of years for long terms in your definition?

5-infinity

This post has been edited by lizardjeremy: May 11 2015, 09:10 PM

Ok...as I had mentioned earlier..it is for individual believes.
some believes that for funds that can gives an anualised return of > 10% for the last 10 years AFTER deducting all expenses and charges.....they are already happy with that.
(yes, past performance does not means further performance.....)

so if the other some that does not believes it is worth while.....then it is their believes too.

This post has been edited by MUM: May 11 2015, 09:12 PM

well i would be immensely impressed with mutual funds that can deliver a consistent return of 10% annually provided the benchmark is much lower than 10%.if it only tracks the index perhaps indexing will provide a much better return instead