RHB-Osk got invest in China mkt meh?
I think hwang's only got 1% in China currency exposure

that is what he said lol, what do you think? maintain or switch to other bond?

why do you get that fund in the 1st place?
what criteria did you used? How is the performance against the criteria's?
any funds got better performance over the past few years?
(better not judge based on 1 or 2 yrs performance)
if you want, try fund selector, click the FI funds see the performance, the risk return ratio, risk rating, sharpe ratio and etc and then decide
(just my take...I will keep for a bit longer than see the performance)

Nightzstar,

If you are believer of modern portfolio theory and uses it for investment, then you would realised that bond or fixed market portion of your protfolio is to decrease the beta (volatility aka risk for lay-man). Hence, your bond selection criteria should be which one gives me the highest ROI and smallest standard-deviation. It is not which one invest in China or India or what's not. You are asking the wrong question.

BTW, when I construct portfolio my portfolio, the two bond funds you mentioned is not in my selection criteria.

I let the equity fund generate my alpha (aka ROI for lay-person). To me, the bond fund is to help me stabalize my overall portfolio volatility, not to generate the ROI.

Xuzen

so what kind of bond fund actually meets ur criteria? share share pls

Criteria: Highest ROI and smallest standard-deviation

If your are FSM customer, look under their fund selector, and see which one the fixed-income fund has the highest number for Risk-Rtn ratio. You will get the answer.

Xuzen

everybody is saying china or norrth asia has better upside.

I think it's AmIncome Plus

thks xuzen & yklooi

so the higher ratio of risk-return the better?

This post has been edited by nightzstar: Jan 13 2014, 09:09 AM

i am also sometimes get confused.
what i did was to compare the value of the ratios between the Fixed Income funds against the value of high risk equities funds....to get the idea
i think it is in the sense of less risk for your money. to get the expected return.

Definition of 'Risk/Reward Ratio'

A ratio used by many investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns. This ratio is calculated mathematically by dividing the amount he or she stands to lose if the price moves in the unexpected direction (i.e. the risk) by the amount of profit the trader expects to have made when the position is closed (i.e. the reward).

Investopedia explains 'Risk/Reward Ratio'

Let's say a trader purchases 100 shares of XYZ Company at $20 and places a stop-loss order at $15 to ensure that her losses will not exceed $500. Let's also assume that this trader believes that the price of XYZ will reach $30 in the next few months. In this case, the trader is willing to risk $5 per share to make an expected return of $10 per share after closing her position. Since the trader stands to make double the amount that she has risked, she would be said to have a 1:2 risk/reward ratio on that particular trade. The optimal risk/reward ratio differs widely among trading strategies. Some trial and error is usually required to determine which ratio is best for a given trading strategy.

http://www.investopedia.com/terms/r/riskrewardratio.asp

forget to ask...you posted..so the higher ratio of risk-return the better?
what does "better" imply? if it is better returns of investment...i guess not.

This post has been edited by yklooi: Jan 13 2014, 09:39 AM

Amincome plus, risk/return ratio 12, so high. but looking at it ROI, my God, even put FD also way better.. So what's the point?

Eh this year don't have CNY dinner? Who wants to bring a 'date'? Or maybe I should call them up for an extra seat

was referring to the table of funds at FSM sites, they got put the return to risk ratio, amincome was the highest among the funds.i think ben3003 answered my questions.

i see, i am clear now, that why i don't understand when pink spider mentioned am income plus, i thought it was recommended but looking at the ratio is quite high, which is why i am confused.

This post has been edited by nightzstar: Jan 13 2014, 11:14 AM

Amincome Plus is the fund I am using as an anchor. You may use FD as the anchor.

The point is pragmatism.

If I am in FSM, I put in AmIncome I can switch in and out with a click of a button. If I put in FD, I need to go to the bank and do all the physical transaction. Plus FD has a lock in period, AmIncome doesn't. I can rebalance anytime I want.

Again, I need to reiterate, the bond part is not for you to generate alpha (ROI), it is to reduce beta (risk) in your portfolio.

Xuzen

p/s @YkLooi, you cannot compare risk/rwd ratio inter-asset class. This is the limitation of this measurement. You need to compare the ratio withing similar class i.e., equities to equites; bond to bond. In other words: apples to apples, orange to orange.

But 2013 AmIncome Plus underperformed benchmark

Cash Management Fund outperformed it

Talking of which, RHB-OSK Income Fund 2 (formerly OSK-UOB Income Fund) also not bad. Yes it's not spectacular, but it does the job.

OK, I will check on the two fixed income funds you mentioned. In fact I was in a dilemma between AmIncome Plus & Eastspring Inv Bond. However, my conservative side won and I used AmIncome Plus as my anchor.

Xuzen

This post has been edited by xuzen: Jan 13 2014, 11:42 AM

Because AmIncome Plus invests in short-dated bonds, there will still be SOME volatility.

CMF is 99% FDs, balance in cash. Volatility is near zero.

Income Fund 2 is your normal EPF-compliant bond fund (means up to 30% foreign bond), but managed with quite low volatility.

FSM Fund Choice: RHB-OSK Global Allocation Fund [Jan 2014]

The importance of a globally diversified portfolio should not be taken lightly as insufficient exposure to both developed markets and emerging markets will put the portfolio at a disadvantage from a risk and return perspective. Investors are likely to miss out on the benefits of upside opportunities and lowered volatility if they omit one of these two distinctive regions.

More often than not, the portfolios of many Malaysian investors tend to be concentrated in Malaysian and Asian equities. The under-exposure to developed markets inevitably constrains the potential returns coming from this matured asset class. It also weakens the portfolio defensiveness that practically can be achieved by diversifying across the globe (see Chart 1). As shown in Chart 1, the global bond and global equity registered better standings compared to most of regional/single country indices in terms of annualised volatility and annualised return over the past 10 years. In addition, the combination of both global asset classes in equal weighting (Global Balanced) potentially offers an equity-like return at a bond-like volatility.

URL: http://www.fundsupermart.com.my/main/resea...?articleNo=4196

yes,...i am using it to "READ" if the higher value of the risk reward is better or lower is better.
(in risk/reward)
because it was asked "so the higher ratio of risk-return the better?"
comparing the value of the 2 extremes may provide the guides...

I hope you all holding Indonesia UT .. today most Indon stocks went up between 5%-15%.....

This post has been edited by gark: Jan 13 2014, 04:52 PM