Hi, wondering if there's any asset allocation thread. Complete investment newbie here, would like to hear how you implemented your "lazy portfolios".
Cheers,
John L
Modern Portfolio Theory, Asset allocation for Malaysians
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  May 27 2013, 03:08 AM, updated 12y ago
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May 27 2013, 01:18 PM
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QUOTE(mchicken @ May 27 2013, 05:17 AM) Thanks man  Urm... Looks like this guy invests a lot in stocks and REITS. I was wondering if anyone owns ETFs or index funds? This post has been edited by JohnL77: May 27 2013, 01:34 PM |
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May 28 2013, 04:07 PM
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Xuzen: I heard that you can buy Vanguard Index Funds with an online broker. Or just buy ETFs. What do you think?
yklooi: Is fundsupermart the best way to buy financial assets? Are there ways to buy without incurring sales charge? Btw, nice link man. Pink Spider: Does this ETF have a good bid/ask spread? I read in an earlier thread that local ETFs have low volume. Btw guys, what do you think of Private Retirement Schemes in Malaysia? Are they any good? Do we have tax-deferred accounts like 401(k) in the US? Why tax deduction for EPF+Life Insurance capped at RM6000 and PRS capped at RM3000? Don't you think we're being screwed over a bit even though we can save 23% of our income with EPF scheme? |
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May 28 2013, 06:07 PM
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QUOTE(yklooi @ May 28 2013, 05:05 PM)  Is FSM the best way?... i am NOT sure,..but it is good enough for me at this moment, lower SC (compared to banks or Investment mgmt house), easier to monitor my portfolio, vast info on the website,..etc without incurring SC? i think there are some that dun't charge entrance fees, but only on exit.he-he.some bonds funds are without SC...(i think bonds are considered as financial asset too) there are certain condition surrounding the PRS... read http://www.ppa.my/index.php/how-prs-works/faqs-on-prs/ especially Q13 i think the caps are to prevent those with some surplus $$ to "avoid" being taxed more....govt needs taxes to operate.  But, what about online brokers? What's your opinion on foreign currency exposure? I think the ringgit might strengthen against the dollar in the long-term, like 30 years. How ar? About that bond fund, how to calculate the costs? I saw management fee - 1%, expense ratio - 1.05%. That means the total expenses is 1.05%? The average return is 4-5%. Minus expenses you get - 3-4%. If inflation is 2 percent, you only get half. And the price is about RM1.2? How to calculate the yield? Yeah, of course govt wants to tax more. But in the US you have like a cap on how much you can put into your tax-deferred 401(k). Hmm.. I guess it adds up to the same. |
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May 28 2013, 07:11 PM
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QUOTE(yklooi @ May 28 2013, 07:05 PM) Just stumbled on that thread too, haha. |
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May 28 2013, 07:53 PM
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QUOTE(xuzen @ May 28 2013, 07:20 PM) I am not sure if you can buy it directly over here in Malaysia wrt Vanguard Index Fund. If can, I will be the first to enter it. This guy claims he invests in Vanguard - http://www.saigoheiki.com/blog/the-month-o...1/#comment-9312. I have a comment below, he hasn't replied. Thing is, minimum investment in a Vanguard Fund is $3000. I'll give you full details about what I want to achieve after my exams next week. Study time.However, investor may approach Licensed Financial Planner to buy them through Hansard Inc (a wholesale platform for off-shore fund that work somewhat like FSM but only for foreign funds only). Hansard is only available through Licensed Financial Planner, but at this moment I think the charge is quite unattractive. PRS in my humble opinion is one of the best development for investors' benefit in recent time. Think about it; you are essentially able to buy into unit trust scheme (rebranded as Private Retirement Scheme) with zero sales charge, with benefit of tax exempted income distribution and RM 3,000.00 tax relief. I believe this is the cheapest method to get into unit trust at this moment in time. BTW some PRS also have exposure to foreign equities. The best performing PRS operator at this moment is Hwang in terms of YTD nett return. I was hoping that this zero sales charge PRS thingy will force other unit trust operator to follow en-masse. But I was wrong, only a couple do it. Wrt to tax relief cap, sorry kid, gomen cannot give more because our gomen need money to buy cincin, submarines. Birkin Bags ... errr I mean Nation building. Xuzen Oh, and Vanguard has a branch in Singapore. Wonder if we can invest through Singapore? This post has been edited by JohnL77: May 28 2013, 07:53 PM |
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Jun 13 2013, 01:19 AM
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Hi, really good writeup. I've actually read William Bernstein's The Intelligent Asset Allocator. Almost finishing his Four Pillars of Investing right now. I didn't know you could calculate ROI/Std-Dev, thanks for sharing.
But... the funds you used in your example are actively managed right? Not that historical data of stocks means we can expect the same return and standard deviation in the future, but it's harder to compare the performance of fund managers, right? Their decisions might change from time to time and what's more, fund managers change. Have you heard of commission free ETFs? I found out that in the US some brokers are offering these. *EDIT: I just got a reply from TD Ameritrade, they said yes foreigners can buy ETFs commission free from them! *EDIT: And no need for account balances either! I think in part 3 you should explain to Lowyat citizens that chasing the "efficient frontier" is pointless. Oh, and please teach me how to calculate the Sharpe Ratio! Your explanations are very clear and concise. This post has been edited by JohnL77: Jun 13 2013, 02:10 AM |
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Jun 13 2013, 03:12 PM
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QUOTE(repusez @ Jun 13 2013, 08:49 AM) i think you can check this website for info about sharpe ratio and volatility Thank you http://invest-made-easy.blogspot.com/2013/...and-sharpe.html *Lowyat reply notification not working so well. Hope you're reading this, admins. This post has been edited by JohnL77: Jun 13 2013, 03:13 PM |
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Dec 21 2013, 11:25 PM
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QUOTE(dreamer101 @ Dec 21 2013, 11:02 PM) https://forum.lowyat.net/topic/2843370 Dude, I was on that thread. But thanks for the info. JohnL77, Vanguard fund is only available for US resident. For non-US resident, you need minimum of USD 300K before you can even open an Vanguard A/C. But, all is not lost, you can invest via Vanguard ETF instead and no minimum. See above thread for discussion. Dreamer |
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