QUOTE(azilazwa @ Jan 7 2013, 01:09 PM)
Switch all --> u mean switch all my profit so far right? like in my example, the 500.
OK, will read previous pages about this switching.
Right now i only have 1 fund. Seems like i have to open a new one asap. Should choose a bond fund after this.
While it is prudent to take some money off the table when the market is high, it has to be cost effective since there are transaction costs such as switching fee. 3 things need to be aware of: the minimal fee, the minimum number of units allowed to switch, and whether the fund is more or less than 90 days since its purchase.
The minimum acceptable number of units to switch is 1000 units.
If the unit price is about rm0.30, then rm500 translate to about 1666.67 units.
If the unit price is about rm1.00, then rm500 or about 500 units is not enough to switch.
The unit price in a bond or money market fund is normally around rm1.00. So you may not be able to switch it back out after switching in....
Within 90 days of purchase, the minimal switching fee out of equity/bond fund is RM50.
Within 90 days, switching
out of the following funds:
a) equity funds 0.75% or minimal RM50
b) bond funds 0.25% or minimal RM50
c) money market funds RM25.
After 90 days, switching out
and into the following funds:
a) equity funds RM25
b) bond funds RM25
c) money market funds RM0.
At the present, there are a couple of bond funds that are performing worse than the money market fund... money market fund has lower returns than fixed deposits in a bank...
Switching into money market fund is like free money to Public Mutual... while the switch in cost is zero, switch out cost is RM25... which I think it is a bit excessive after giving PM "free" money.
QUOTE(1282009 @ Jan 7 2013, 09:46 PM)
Hi all, am new in this unit trust investment started around year 2009.
Just couple days back switched PIX to PSBF to gain some profits for the first time even though dividend is expected to be paid end of this month for PIX. Is it a wise decision? Normally price will drop sharply after dividend is paid out.
Is it right time to go in for PSF?
This distribution 'profit' has been well discussed a few months ago...
The daily unit price or NAV price is a
fluctuating price; unlike a
fixed price fund like ASB.
NET as in Net Asset Value (NAV) means that all the operational costs, management fees, etc. has been taken into account when calculating the unit price every working day.
So it does not matter whether you purchase or sell after or before the financial year-end... if there is a distribution, no doubt the price will drop, but there is extra distributed units to even out the fall in price... the total value (number of units x unit price) is the same.