hi guys i recently joined FSM.

i noticed they have a service named 'Regular savings plan' and as far as I'm aware of, it is exactly the same as buying unit trusts yourself except that your bank acc will be deducted a certain amount every month.

Apart from this feature, is there any other differences?

if there are no other differences, then basically i can manually top-up RM100 per month on my unit trust funds and hence it would be exactly the same. am i right on this?

The major advantages are low SC up to 2% only and can buy many funds from other mangers.

convenience, forced (somewhat) discipline and as david said, lower SC

thanks for your reply David. but i was under the impression that even buying unit trust funds yourself from FSM has low SC up to 2% only?

In that case, it isn't a benefit exclusive to Regular saving plans right?

If compared to PM even with PMO, it is still >5% of SC.

CIMB is getting aggressive now by selling UT online via CIMBClicks at SC of around 2% to 2.5%.

For RSP, I cannot comment because I didn't subscribe to it.

it will take the emotional aspect of investing away with RSP
(RSP is automate...keep buying even mkt is down. if do it manually,...one may tend to time the mkt or stopped investing when the mkts are down)
without initial investment amount...
"forced" to practice DCA
hazzle free....need not have to remember to buy.

http://www.fundsupermart.com.my/main/resea...l?articleNo=456

RSP benefit is u don't need to think when to invest

On every 15th of the month your bank/Cash Management Fund will be deducted the amount.

SC is same whether u buy in manually or by RSP

yup that's what i thought after reading through the FAQs. So basically i can just buy in manually on the 15th every month and in a sense it's already like a RSP - minus the slight inconvenience of clicking a few buttons every month.

You nailed it on the most important aspect - NO INITIAL INVESTMENT AMOUNT.
Usually the initial investment on a new fund is at least RM1000.

With the RSP, you can start a new fund with as low as RM100. and then follow with the same amount every month. This will be a true DCA strategy with equal amount instead of a big initial investment and then with smaller monthly amounts.

Another point is that without the initial minimal amount, it is easier to diversify and purchase several funds at the same time. Not necessary to be selective and pick only one fund.

Last point is that the RSP can be stopped anytime without penalty. A portfolio of funds could be built up using RSP. purchasing several funds at the same time; and stopping the purchase on any fund that has meet the required percentage within the portfolio.

Great reply! Thanks j.passing.by!

Been so busy on the other side of the thread. How's the funds doing?

Which side?

Global funds the star
Emerging market funds ok-ok
Bond funds recovering
ASEAN-heavy funds (read - HwangIM) koyak

This post has been edited by Pink Spider: Dec 27 2013, 09:50 AM

Review Your Portfolio And Plan For 2014...... December 27, 2013
This week, FSM encourage investors to sum up the year and get ready for the new opportunities. .....Author : Fundsupermart.com
http://www.fundsupermart.com.hk/hk/main/re...&articleNo=7524

Qoute by: FSM HK: We reiterate our preference for stocks over bonds in the current environment which is increasingly turning more growth-centric. For equities, we suggest that investors continue to favour Asia ex-Japan and the Emerging Markets, both of which sport more favourable valuations as compared to their developed market counterparts. In particular, North Asian markets of China, Hong Kong and South Korea are some of our highest-rated single-country markets - the potential for a re-rating of valuation multiples coupled with continued earnings growth should provide significant upside potential for investors.

"Distribution is very relevant especially to retiree investors who want a source of income. For this type of investors, basically what they can do is to invest in a fund that has a distribution policy, and elect to receive distributions in the form of CASH. To an investor who elect to receive distributions in cash, distributions are a form of income, a cash inflow; gains in NAV price are capital growth.

E.g. upon retirement you have RM1mil which you invest in a fund. The fund that you invested in made a return of 10% and declares 8% as dividend for the financial year, that's RM80,000 of cash inflow for you! Of course, when a distribution is declared and paid, the NAV price will drop proportionately. The balance of 2% that are not declared as distribution will be reinvested for future growth."

Was reading the first page and got slightly confused. i have 2 queries:

1. Distributions are a form of income for retiree investors.. but that's only assuming if the fund made profit right?

if the fund that the retiree invested made 0% profit but declare 8% dividend for the financial year, the retiree gets RM80,000 but that's basically his own money from the RM1mil and the value of his investment becomes RM920,000.

2. I was also just wondering why you made the statement that distribution is very relevant especially to retiree investors[U] who want a source of income? as in, why only to retiree investors?

basically dividend can be relevant to anybody as long as the fund is making profit, right? take ur example that i quoted above.. what i'm saying is that the "dividend declared = source of income" in your example quoted above can be relevant to anyone and not just retiree investors.

do correct me if i understood wrongly. still trying to grasp the whole idea. thanks in advance.

This post has been edited by liette`: Dec 29 2013, 03:25 AM

Why care about distribution, as u say, it is still ur own money. For a retiree investor who need the money, just do the partial repurchase, then u will get the money u want.

When they declare distribution, the amount they give u back is the same as how many u lost when they declare distribution, so how to make income like tat? u got 10 apple, u lost 2 apple when NAV drop, then they give u back 20slices of apple which makes up of 2 apple later. Total u still own 10 apple.

Dividend is only relevant if u own a stock.

thanks for the reply guys but yours answers are not answering my 2 questions. and basically what you both are saying is what i said in my initial post.



my specific 2 questions were different and targeted towards pink spider since i was quoting his words from the first page. the first two paragraphs i copied n paste from him. it was not what i said. should have used the 'quote' function. my bad.

but thanks anyway!

hi pink, let me know if it's better to PM you or ask you here.



This post has been edited by liette`: Dec 29 2013, 12:37 PM

ANOTHER distribution question...

But at least u are being reasonable...ok, here goes!

Distribution can only be made from REALISED GAINS (dividend income, interest income, realised gains from disposals of shares). But NAV price is ALSO affected by unrealised gains/(losses) caused by market price movements, you know that, right?

Thus, we may have a situation like this:
Unrealised losses: -RM10,000
Realised gains: +RM8,000
Distribution: RM7,500


Yes, during the period, investors actually lost money (RM8K - RM10K = -RM2K) investing in the fund, yet still receiving CASH dividend of RM7,500 (ASSUMING that investors ELECT to receive in cash, with FSM, the default is re-investment). Here, we are hoping that the unrealised losses will reverse soon.

In other words, when u ELECT to receive UT divvy in cash, if the fund actually lost in NAV terms during the past 12 months, u are in effect taking the realised gains to spend and hoping that the unrealised losses are only temporary.

Similar thing when u invest in shares yourself, let's say I bought ABCREIT at RM1.50 years ago, but now it's trading at RM1.00. True, I've lost 33.33% in share price, but in between I've been receiving dividends of 15 sen a share annually. The dividends received could have been more than the paper loss I've suffered.

Dividends in unit trust is similar but NOT 100% same as dividends in shares.


When u are a young investor i.e. trying to grow your wealth, u want TOTAL RETURN. In fact, you SHOULD reinvest all your dividends received, compounding effects mah.

When u are a retiree investor looking to live on investment income, u wouldn't be too bothered with paper losses of your investments so long as u are getting the regular cash flows to live on.

Hope that I've put it clearly to u.

This post has been edited by Pink Spider: Dec 29 2013, 12:58 PM

Thanks Pink, yep it's very clear!

One last question and scenario,

For example:

Unrealised losses: -RM2,000
Realised gains: +RM10,000
Distribution: RM8,000

So the fund is making (RM10,000-RM2,000=RM8,000) profit. and distributed 100% of the gains. in this sense then the dividend is definitely considered source of income right? only difference is that your initial investment remains the same and you are not re-investing your gains.

If this is correct then I guess I have understood the concept!

Thanks!