Front loading, service charge, service fee, entrance charge, commission... all the same thing.

Only difference to be aware of is the "exit fee" - which some funds have.

Yes, with the 2 online platforms that were mentioned in the other thread. Pay the full charges if you want a pretty face and personal service.

multi sources and investments!

Yes....read a bit more and learn to pick up some technical stuff on our own... then take own advice and counsel.

BTW. "Buying" is only the beginning... just as important is the selling part and building a portfolio of several funds - which no UTC (unit trust counsellor) can provide, since they are not licensed financial advisors.


This post has been edited by j.passing.by: Jul 8 2014, 02:25 PM

Compounding interest or compound interest simply means "interest on interest".

You will get compounded interest when you don't take out the interest, and let it remain together with the principal.

Similarly, you will get CAGR (compound annual growth rate) when you do not take out any growth in the unit trust. (CAGR is also known as the annualized rate.)

When you take out the interest, it is called "simple interest". For example, RM1000 at a consistent 10% p.a. for 10 years, you will get 100% growth, when interest or growth is taken out every year.

But, if the growth is NOT taken out, and if we still get 100% in 10 years, then the annualized rate can be calculated; and it is 7.2% p.a. (Please google the formula on how to calculate the compounded or annualized rate.)

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In your above examples, they have nothing to do with compounding interest or annualized growth; just some examples of random growth rate in each year and how they will affect the investment differently.

What matters, to the investor, is the growth at the end of the invested period. Then the compounding interest or annualized rate can be calculated.

Of course, what happen to the fund at each particular year matters too, as you have shown in your above examples. If the fund goes negative in the current year, it will have to crawl much harder, and at a much higher rate of growth to not only recover the lost, but to also provide a positive growth the following year or years.