The bigger the fund, the less efficient the management will be. If a fund is too big, it cannot make purchases without distorting the whole market. Hence big funds can only buy very very liquid stocks hence becoming more like an index fund already, as the list of stocks they can buy is limited.

A good example is public smallcap became sooooo big, until the performance is affected before they decided too late to close the fund.

This post has been edited by gark: Jun 1 2013, 02:54 PM

Yeah.. but it was a general reply to those who think that bigger funds = better.

Still even though it is yield focus, the big size does limit some of the purchases. For example if SIF decide to invest in like illiquid stock with good yield like Hup Seng.. what would happen?

This post has been edited by gark: Jun 1 2013, 03:38 PM

They charge a ~0.5%-1.0% p.a.wrap fee for those service. The wrap fee is based on total invested NAV, hence when your NAV goes down, his commission also goes down. However to compensate on the wrap fee, the sales charges are lowered to 0.5%-1.0% per purchase/switch accordingly.

So fee structure will be :-

1 Wrap fee 0.5%-1.0% p.a. based on daily NAV
2. Sales charge 0.5%-1.0% - one time
3. Fund Management fee - 1.0%-2.0% p.a. based on daily NAV

So for example your holding is 100K RM daily average, the 'FA' fees will be RM 500- RM 1000 per annum for his advice...

So whether if it is suitable for you or not, depends.. and they only trade in UT carried by FSM. And each FA can have many clients... and your UT portfolio will tend to be trade heavy...

This post has been edited by gark: Jun 3 2013, 11:38 AM

No not using them.. just know only...

Not everyone expert like you can DIY...

Maybe you can become FA here... charge 0.25% for you to 'DIY' other people's account. Can earn side money...

This post has been edited by gark: Jun 3 2013, 11:52 AM

per annum... Ok what, click click 2-3 times a month only per client....More money look for more clients lah..

This post has been edited by gark: Jun 3 2013, 11:56 AM

But easy job mah.. click few times a month... monitor the balance... i think not hard work since you already doing the monitoring daily.

This post has been edited by gark: Jun 3 2013, 11:57 AM

Interest rate goes up,

1. bond koyak
2. property koyak
3. equity not necessary koyak.. but will be weak
4. gold koyak
5. Commodities koyak

.... FD winrar..

Who told you one...

Depend on the bond lah..

Long term non investment grade bonds is higher risk than equities.

The safest bond is short term, AAA grade bonds... will hardly move one.


and...


watch out for reits...in high interest environment.

Up like bond...

drop like equity...

This post has been edited by gark: Jun 3 2013, 07:45 PM

Why cut loss... shouldn't you buy more.. isn't that what portfolio balancing is about. If you cut loss you are timing the market. and most market timers do not fare well. Most of the time, the market bounced back when most retail investors cannot take it anymore and cut loss....thats where bull markets are born.

This post has been edited by gark: Jun 10 2013, 10:20 AM

Alternatively ask pinky to help you construct portfolio... then pay him 1%.

Cheaper than the 5.5% you pay your UT consultant right?

Well my UT investment during 2008/2009 also down to >-50% also like that, the lower it goes the more i buy.. now already >60% gain. Selling my bond as fast as it can during the period to switch to equity. Now waiting for the next downturn .. whee...

And the amount is not little, it's 6 figures. Once you have a method (ie. balancing), you can block out emotions easily.

But not for the faint hearted. Whatever goes up will eventually comes down and vice versa. The bigger the drop, the more you will earn eventually...

This post has been edited by gark: Jun 10 2013, 10:39 AM

No not 1 fund, but several... i place >50% in pacific ex japan and some in US, china etc. More or less equity is >80%, You think leh?

Whole portfolio is about -45% lar at the worst period.

This post has been edited by gark: Jun 10 2013, 10:37 AM

No you never know when it hit rock bottom, but by balancing your portfolio, you can follow the downtrend.

The trick is not looking for the absolute bottom, just ride it down and ride it back up again....and average out your cost on the way.

This post has been edited by gark: Jun 10 2013, 10:41 AM

Ya thats right, buy gradually....never put in a lump sump bet.

Ammo very important, so make sure you have the buying power during bad times...

No ammo, how to fight war.. mah just surrender only.

UT movement already consider very mild... when you start play equity directly.. even more challenging.

This post has been edited by gark: Jun 10 2013, 10:44 AM

History shows eventually it will unless the whole economy destroyed by war... even though Europe/Japan economy is bombed to shit during WW2, also bounced back eventually wat. Can't get worse than that..

If you follow balancing correctly, you would have reduced equity or suspend when the prices shoot astronomically, so you won't be left holding the bag either.. unless you did not do that..

If you are greedy and buy MORE at the top.. then good luck lah...

This post has been edited by gark: Jun 10 2013, 10:49 AM

If you have 7 out of 10 become winners, you would have beaten WB already... His average is 6.5..

This post has been edited by gark: Jun 10 2013, 10:48 AM

Ammo can be kept in your bond portion or separate emergency fund...

1st before you digest, what is your expectation.. if you want average earning of 20% then might as well forget it, you will head to your doom by being greedy.

I target only 8% return yearly...on average ... over very very long term.

Have a realistic target and you will not stress over it too much.

This post has been edited by gark: Jun 10 2013, 10:52 AM

Sell most bond winners and move to worst performing equity.... because bond went up during the period and equity dropped. Why you want to put in best performer?


Pink Spider Please give these people the portfolio balancing theory lesson?

This post has been edited by gark: Jun 10 2013, 11:02 AM

No I was fully invested, add fresh funds and switch bonds.