...get UTC to manage for you (if you manage to get a good and commited one la).

Very low cost Mega-index funds like Vanguard S&P 500. How does 0.1% annual management fee sound to you? Still want to pay 1.5% AMF?

The operative word is the "IF". If the Fund manager return an alpha greater than benchmark fine and dandy to me as well.

However, the operative word is can the Fund manager consistently return an alpha greater than its benchmark? If yes, can its risk be lower than that of the benchmark consistently?

It was this question that prompted John Bogle the fund manager to set up this ultra low cost fund that utilizes passive investing.

Also, if you have read A random walk down Wall Street by Burton Malkiel, the author also come to the same conclusion.

I also have another book All About Index Fund by Richard Ferri in my personal library which also advocate low cost index fund for investor.

On a parting note, I agree that low AER is not the only parameter for choosing a fund, but it does play a part. For me, it plays a big part in choosing a fund. Why the heck you think I become an agent if not to reduce the cost of investment.

Also, by being CUTA, I have access to off-shore funds where the AER is much lower and zero sales charge.

I am first and foremost an investor, hence I think like an investor, not as an agent.

Xuzen.

Profit is a function of sale minus cost, and if you do not care about cost, you are missing a parameter in the equation. Since cost is positively co-related variable in the profit equation, you lower the cost, the better your profit.

Yay, at last we have some numbers to play around:

i) I prefer option 2 because Profit/sale x 100 = Profit margin. Hence 10/11 x 100 = 90.90% profit margin versus you little puny tiny 90.00% margin. LOL at you.

Not very financial literate are we?

Young padawan, too one dimensional one is, more knowledge one acquire should.

This fund had seriously under-performed its benchmark, and with each withdrawal that will force the fund manager to liquidate at the wrong moment, it is hard to imagine the fund will perform any better in the near future.

So we can conclude that if you do not care about AER and only profit, you will have champange, song and women during the boom time. But when it is bearish environment, you will have none of these.

But if you keep and eye on AER, your capital is greater protected.

Xuzen

NOTE:
another donkey technicality to consider - minimum units to SWITCH is 1,000 units if i'm not mistaken.
IMHO, pretty not-smart lor, shd be based on VALUE mar, not UNITS. 
eh.. i didnt come up with this "note" technicality yar, PMut did 

True but does the majority of investors think in terms of units or value?
In addition, what is the chance that "the NAV dropping so much that there is not enough VALUE to switch"?

Anyhow, when i mean "switch by value", i meant switching units but NOT at a minimum of 1,000 units, not verbatim switch by value $ per se. My bad - my previous posting can be construed such.

Small Cap is not a Malaysia focus fund.

This fund focuses on a diversified portfolio of companies with small market capitalisation with good growth prospects listed on Bursa Securities.

My interpretation of Malaysian focus fund is 100% Malaysia shares based.

No issues buddy, was just pulling your leg. Without the help of super duper specific purpose software, don't bother to do the risk calculation. The time are better spend doing more exciting things... like "chasing skirts" etc.

Xuzen

Answer to question 1:

Correlation is impossible to future performance because the event has not happen yet, there is no correlation. Due unknown parameter I  cannot compute.

Answer to question 2:

My three years annualised return of my tracked portfolio is around 12% p.a.. My sharpe ratio is maintained above 1.5. I keep my porfolio simple i.e., I buy into two asset class only (bonds and equity) since I do not have super-duper specific software, I calculate them manually. I cannot handle more than that due to lack of sophisticated tool.

Xuzen

Hi all sifu, I would like to diversify outside MY to hedge against devaluation of ringgit. Also, since v pay money to fund manager,  would like a fund which fund mgr could move around the funds to different sectors / regional / bonds / as appropriate.

Am thinking of Tactical Allocation Fund, kindly let me hv ur comments or other recommendations. ... thx in advance.

4) A retirement UT fund, almost untouched, can be left to heirs. While an annuity leaves nothing.

What if I'm mutual gold and can save the switching fees..becoz I holding mutual fund since 2005..fr china select to south east Asia to public saving and public Islamic opportunities...growing very slow...Hutu

Previously unit holder can specify beneficiary bank a/c for crediting purpose in d redemption form; now no more