I am now slowly structuring asset allocation of my portfolio in accordance with risk appetite. Once this is achieve, I'll allocate say 5% for paly money namely derivative market aka warrant play.

I shall achieve my above objective by CNY-2014. Then it is play time baby, play time.

Xuzen

Yarlor semua pun boleh invest:

Gundam sets, Transformer First Edition sets, Rolex vintage, Pu-Er tea, Playboy Vol 1 (oops) and X-men series comics....

Xuzen

Got meh? fast fast tell me lar... I want oso wor.

Xuzen

BLR minus 1% is effective rate 5.6%, sales charge is 5.5%, MER another 1.5%. Total for first year is 13%. Thereafter every year is 7% cost of investment.

Eeeeeee, tak mau liao. Sure kalah wan liek dis.

Xuzen

This post has been edited by xuzen: Aug 11 2013, 12:54 PM

This post of mine prompted me to ask this question: If I take the borrowing, at what level must I break even?

After thinking through it and scouring my brain on what formula to use, I will use a slightly modified Alpha-jenssen ratio to calculate the above question:

Risk free rate (MBB 12mth FD rate) = 3.15p.a.
Cost of borrowing (BLR - 1%) according to Cheahcw2003= 6.6 - 1 = 5.6% p.a.
Benchmark rtn (KLSE Emas index) = 8.96% p.a. (source from Pub-Mut)
Annual Management Fee = 1.5% (source Pub-Mut)
Assuming the beta is 1.0 i.e, similar to market fluctuation, no better, no worse:

The minimal ROI to expect in order to just breakeven =
[MER + Risk free rate + Cost of borrowing + Beta x (KLSE benchmark return - Risk free rate - Cost of borrowing)]

= 1.5 + 3.15 + 5.6 + 1.00 x (8.96 - 3.15 - 5.6)
= 10.46% p.a.

Let's look through Pub-Mut funds that has consistent performance of 10.46% p.a. with a beta of 1.00?

Sorry none of them has this. Hence it is a no go for borrowng to buy Pub-Mut fund.

Xuzen

P/s: I have discounted the one off sales charge of 5.5% since it is a one off event.

This post has been edited by xuzen: Aug 11 2013, 02:26 PM

For those who withdraw from EPF to invest into unit trust. Remember you will only be able to use the money after 55 y/o which for majority of us that would be in 10 or 15 years time.

My guesstimate at a conservative 10% p.a. ROI for KLCI, 10 years later, when KLCI hit 5,000 pts, your decision to whether enter at 1700 pts or 1800 points, it becomes immaterial.

Stay the course, dollar cost average to reduce your risk. Stay invested.

Xuzen

Yeah, me too..... I have holdings in Eastspring small cap too, gave me a heart attack.

Xuzen

Just received an email from FSM, they are gonna make bond fund sales charge zero percent.

PERMANENTLY!

Publiic Mutual ..... Go f3ck urself!

Xuzen

What platform fee? The email apa pun tak cakap.....

Xuzen

Pinky,

Why you keep calling HAQF Ponzi? Something I miss out?

Also: Thinking out loud.... if you want to escape Hwang's sales charge, how about going via Hwang-PRS Growth. You are basically buying into fund of fund (HSOF, HSAOF and HSBF) at zero sales charge.

Similarly, if you go through Hwang-PRS Syariah Growth, you are basically buying a feeder fund of HAGF but without the sales charge.

Xuzen

This post has been edited by xuzen: Sep 25 2013, 11:52 PM

yarlor... conjob. They should be like those Investment Linked Fund... never declare distribution, never do unit split one. Some of their NAV = RM 3.XX/unit.

Xuzen

Pink,

Is that avatar your real you? Fuh-Lau-Weh.... call me baby?

My contact: 1300-CALL-MEE

Xuzen