Hi, need advice from Sifus.

ASB1,2,3 these days give around 5-6% dividend. And after deducting zakat, that gives me around 2.5-3.5% p.a.

My housing loan left around 380k, 30 years at 4.3%.
Should I just pay off? Or refinance? But then again, nothing low risk will generate me above 4.3+2.5%.

This post has been edited by keanoppy: Jan 22 2020, 08:25 PM

Normally it makes sense to pay off your debts in the following order from highest interest to lowest interest

1. Credit Card/Personal Loan
2. Car Loan
3. Housing Loan

I am not familiar with how zakat works just now researching it sounds complicated but if you. If you have to continue paying the same zakat amount even if you pay off your housing loan doesn't sound worth it. If your effective return is 2.5-3.5% and your loan has a higher interest guess it would be better to pay off your loans.


Whether it is worth it to refinance you really need to work out the figures whether it is cheaper.

Just make sure you have 6 months of living expenses first before you pay off your loan as money in ASB is liquid money in your loan is only liquid if you have a Flexi loan.

This is just my opinion you either need to look at the actual numbers yourself or get someone to look for you to get a proper recommendation.

Hi,

I just wanted to seek your opinion about investing in equity or REIT.

I just started to invest last year 4th quarter using Rakuten trade. Below is my portfolio.



Until now, some of the shares are declared dividend. However, most of the time my portfolio is having loss.

I understand that current situation and other factors will lead to the fluctuation of the share price, but should I continue to put more money to increase my existing shares volume or invest into new share?

If the current losses continue on, how do you decide the timing to sell certain shares in order to get some liquid.

Do share your opinion or suggestion. Thank you.

I'm not too familiar with Rakuten layout so I'm guessing your portfolio is around RM3,553 correct?

If this is true, I believe there are several ways you can improve your investment technique.

1. Conduct transactions only if transaction value is above >RM8,000.
Each buy and sell already incur cost. Not mistaken, Rakuten charges RM7 for below RM1,000.
If you buy and sell, you already incur (RM7+RM7)/RM1,000 x 100% = 1.4%. This means you lost 1.4% already even before you made a profit.
It's better if you put this money in f.d. instead.
Instead, if you transact >RM8,000. Your cost per transaction is (RM9+RM9)/RM8000 x 100% = 0.23%. This is reasonable.

2. Reduce the counters you hold or diversify using ETF.
Yes, diversification is important BUT! You have too many counters in your portfolio. You need to spend time reading all the quarterly and annual reports to properly make decisions.
If you have a full time job, it is better you reduce the number of different companies you hold or use an ETF instead.

3. Set a cut loss.
You did not cut loss on certain stocks causing you to lose a large %.

Final Recommendation
Buy an ETF/mutual fund instead and focus on your career.

That person used website to calculate.

CAGR formula = (Investment value/Total deposit)^(1/no. of years)

IRR is harder to calculate because you need the timing of cash flows to be accurate.
Generally, IRR is the discount rate which gives an NPV of 0.

If there was a single lump sum investment two years ago the CAGR and the IRR should be the same.

Since it is different there must have been multiple inflows and outflows of cashflow.

Hence it would not be possible to calculate CAGR and you would need to calculate the money-weighted return which is equivalent to the IRR.

So what I am trying to figure out as the IRR and CAGR is not the same, how did he manage to calculate CAGR or if there was only 1 lump sum
investment why is CAGR and IRR not the same

If you also look at the Sharpe ratio

which is Sharpe Ratio = (Return - Risk Free Rate) / Standard Deviation

I would assume he is using the IRR to calculate the Sharpe Ratio as the number would roughly be correct if he used IRR and not CAGR. So I am wondering
where the CAGR came from.

The numbers from the Sharpe ratio are also inconsistent. I calculated for
a. portfolio 1 the Risk Free Rate = 2.1801
b. portfolio 2 the Risk Free Rate = 1.7716

The only way the two portfolios can have a different risk free rate is if the time periods are different in which case you can't compare both the portfolioos.
If the numbers don't tally I don't think it is possible to give a reasonable opinion till it is confirmed whether to use CAGR or IRR and
to confirm what is the standardized risk free rate base on the same time period to calcualte the relavant Sharpe and Sortino ratios..

For example if I used a risk free rate of 2%. Portfolio 1 would have a higher sharpe ratio (1.13) then portfolio 2 (1.09) but in the above example
portfolio 2 (1.12) has a higher sharpe ratio then portfolio 1 (1.11).

Not sure whether my understanding of the concepts or calculations are correct so please correct me if I am wrong.

I think it's still possible to calculate CAGR.

For example, Portfolio Visualiser was able to calculate it.



I'm not 100% sure which website that person used to calculate but I tried using this website and still got conflicting risk free rates

I calculate using excel or a financial calculator. Need the base data to see how it is calculated.

Thank you for your advise.

My initial investment should be about RM4k.

Under this situation, sell will incur loss thus is it better to maintain the number of counter and volume? If yes, then will the shares increase in future?

I have full time job thus lack of time to study.

Would like to hear more on your advise.

Based on this 2 reason, I suggest you stick to an ETF with low fees.
It provides you diversification and allows you to focus on your career.
A RM1000 increase in your monthly pay is more than what your RM4000 invested can return to you.

Eventually you will have to sell.
If I were you, I will keep the REITs and Sunway, sell AirAsia and Airport. Others cannot really comment.
Put the remaining money into ETF.
Individual stocks is not meant for retirement because it has no diversification.

Thanks for the advise.

I actually do have invest in Wahed, up and down but today is showing positive sign.

Thanks by the way. Hope to learn more from you.

Guys can enlighten how to transfer out share request in AffinHwang? cant seem to find the info

Mailer link: https://ebms.cimb.com/TS_Services/TS_Previe...4gXm5VmS9Zs9Q==

This post has been edited by GrumpyNooby: Apr 8 2020, 07:42 PM

As the outlook remains cloudy, investors are advised to return to the playbook and discipline of building diversified, long-term portfolios that will deliver superior risk-adjusted returns. For highly leveraged investors, consider prioritising liquidity over bargain-hunting and rebalancing a concentrated portfolio. For investors with sufficient liquidity, be positioned to separate the wheat from the chaff as a dispersion of performance will rise when the dust settles. However, any re-entry into the market should be in phases and make use of diversified instruments such as funds to avoid concentrated portfolios.

The recent selldown in the bond market has presented a relatively better entry point for investors to accumulate more bonds for portfolio stability. Within this asset class, we are slightly overweight on China high-yield bonds as the composition largely comprises Chinese property names, unlike the commodity/energy-centric composition of Indonesia and India. China also enjoys a large and robust domestic economy.

Without a doubt, the recent plunge in global bourses has created some anxiety in the market. The conundrum — whether to buy, hold or sell an investment — is even more prominent as the market continues to trend lower. The stock price is merely a price tag on a share of the business, and it may not justify the value of the business sometimes. Instead of anchoring our investment decision on the fickle share price alone, investors should look through the market turmoil and focus on the true value of the business in terms of its business model, competitive advantage, leadership and financial strength. All investment decisions — buy, hold or sell — should be backed by solid reasons to avoid any kind of herd mentality.

Michael Lai is vice-president of wealth management research at OCBC Bank (Malaysia) Bhd

Thank you for the explanation...

Sounds to me you get back all the funds including the profit?
So where is the scam element?

This post has been edited by GrumpyNooby: May 26 2020, 08:57 PM

Probably an alert to others not to invest in those two companies.

OR to promote the use of the other one

its a learning curve.... take your time👍

Hong Leong Asset Management declares income distributions of RM248 million for 15 funds

KUALA LUMPUR (Aug 12): Hong Leong Asset Management Bhd (HLAM) has declared income distributions amounting to RM247.76 million for 15 funds, for the period of Jan 1 to June 30, 2020.



https://www.theedgemarkets.com/article/hong...illion-15-funds