hi sifus around.

Need some of your opinions on portfolio constuction.

Lets say you are an investor who doesn't require regular stream of income. Would you pump all ur money into equity/balanced fund?

For diversification purpose I'll allocate 20% of the portfolio for bonds (10% in global region and 10% in emerging market). And the rest just pump into Equity/balanced mainly focusing in Asia Ex Japan (planning to have around 50% exposure). Leftover will put in emerging market/BRIC/global.

What's your thought on this portfolio?

i can gain 4%-5% from that movement easily.

KLCI points really gives impact to my selected funds.

im going to take a little bit of risk this time.

If u are willing to put in some effort on portfolio construction, skip balanced funds altogether, u can do the "balancing" on your own, at cheaper cost.

Busy with work now, I'll give a more in-depth explanation tonite (if I'm free and remember )

This post has been edited by Pink Spider: Jan 22 2013, 11:09 AM

It is just my dreaming.
My point is when FSM growth, sure they need to cover major city in malaysia.

You are right!

Well, look @ it this way - U have a GREAT REASON to ask for the 0.5% WITHOUT going to the "seminar" (and wasting time + $ to get at the 0.5%)
Try asking and reasoning - U in JB, crazy ar drive all the way to Central for 0.5% service charge special sales?

If it is not near CNY (which I need to busy around), I am really planning to go KL for the siminar, not because of 0.5 SC, but just to know more.

Pinky, waiting ur sharing on "balancing fund".

What is a balanced fund?

A balanced fund at "neutral mode" is 50% invested in equities and 50% in bonds
At "aggressive mode" usually 60/40
At "conservative mode" usually 40/60

At FSM, balanced funds usually carry 2% Sales Charge, and most of them charges Management Fee of 1.5% p.a.

Equity funds usually carry 2% SC too, but bond funds carry 0% to 1.5% SC (0% for most Malaysian bond funds)
Equity funds typically have Management Fee of 1.5% p.a., whereas MYR bond funds have Management Fee of around 1% p.a.

U want a balanced fund? Why not created a "balanced portfolio" and "balance" it yourself?

E.g. u got RM2,000 to invest now, u will buy RM1,000 into a MYR equity fund and RM1,000 into a MYR bond fund

The SC u will incur is RM1,000 x 2% = RM20
The effective Management Fee that u will incur per year is (50% x 1.5%) + (50% x 1%) = 1.25%

But if u plonk RM2,000 into a balanced fund, say Hwang Select Balanced Fund, u will incur SC of RM2,000 x 2% = RM40
Annual Management Fee = 1.5%

As for the "balancing", it's actually quite simple. Let's say your equity fund went up to RM1,200 but your bond fund only RM1,100, u will top up RM100 into your bond fund to make it RM1,100. Then if your equity fund kaboom and drop to RM900 while your bond fund at RM1,250, u top up RM350 into your equity fund. 50/50, 60/40 or 40/60, it's entirely up to your risk appetite.

Faham ka?

Conceptually understand. But is more complicated if involved multiple equity and bond fund. Besides that, if try to balance the fund without top up, switching cost will incur.

No switching fee will be incurred if both the equity and bond funds are from the same fund house (except for OSK-UOB which charges RM25 per switch)
Topping up is better

Multiple funds is difficult? I have 9 different funds

Once u get the hang of it, it is not as difficult as it may seems at first

OK, never try never know. I try to work toward the "balance portfolio".

kalau rugi jangan salahkan aku, caveat emptor

My portfolio drop 0.5% (vs KLCI 2+% yesterday + 0.5% drop today)

Not bad yeah my diversification, minimized the impact..

Mine actually climbed, EM bonds went up strongly

So nice! I wont be considering EM bonds on near future. As all locked in AmDynamic and cant take out..

Hi all... I just want to confirm the 1 day promo sales charge apply only with purchase at the event on 26/01/12? What if we bought through online fsm website on that day, is entitled for the promo rates? I cannot go during the event as had scheduled task lor. Haih...

Technically, no. But u may want to try...

As for myself, no. I've got a 1% Referral Coupon expiring in March.

Get the promo rate by chance? 0.5%
Fail to get it? 1.75%
Use my Referral Coupon? 1%

Me being the prudent accountant, would rather go for the middle route...1%

Seems that FSM thread and Fund Investment Corner discussions got mixed up so badly

This post has been edited by Pink Spider: Jan 23 2013, 11:46 PM

I guess only FSM can answer you this. Write to them...