Net gain for the period: RM8,000
Distribution: RM8,000

So u are taking 100% of the gains for the period out of the fund.

But, let me add a bit salt and pepper here...

Realised gains is RM10K but u are only taking RM8K out...u are STILL reinvesting RM2K! Unrealised gains/(losses) are (hopefully) only temporary what

But at the end of the day, how much to distribute is the Fund Manager's decision, not yours. So, u want a fund that can deliver the TOTAL RETURN, not just distributing dividends regularly but unrealised losses growing bigger and bigger.

Glad that u understood the idea.

This post has been edited by Pink Spider: Dec 29 2013, 01:12 PM

Yup yup, got it.

thanks a lot really. hard to find forumers who explain in such depth.



This post has been edited by liette`: Dec 29 2013, 02:06 PM

You're welcome, happy investing!

So basically dividends quite redundant.

Scenario A

i invest RM1000 into unit trust with initial price of RM1.00 x 1000 units.

the fund grows 10%. I have RM1.10 x 1000 units = RM1100.

the fund declares dividend of 10%. So it becomes RM1.00 x 1100 units = RM1100.

I opt to get the 100 units dividend in CASH = RM100 CASH.

And I end up with RM1.00 X1000 units = RM1000.


Scenario B

in the other scenario, the fund grows 10% as well. I have RM1.10 x 1000 units = RM1100.

but this fund doesn't declare any dividend. But I can still sell 91 units worth RM100 to get the RM100 CASH.

I end up with RM1.10 X 909 units = RM1000.

Essentially with dividend or not also no differences.

Is the way I reasoned it correct?

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

99% correct.

When u want to grow your wealth, yes, UT dividends are TOTALLY redundant.

When u want to milk your investments i.e. generate passive income out of your investments, u want the dividends. Alternatively, u can do like Scenario B, u yourself sell enough units to get the $$$ that u want.

This post has been edited by Pink Spider: Dec 29 2013, 03:26 PM

Excellent. getting the hang of it.

Just bought a meagre RM1000 into Kenanga growth fund. Learn more along the way. Thanks again.

am I correct in saying dividend paid for UT is taxable but capital gain isn't , so i'll rather have more capital gain than dividend paid

Yes, you're absolutely grabbing the idea correctly.

No.

I dunno how to put it in words, I'll put it in a chart.

UT fund receive dividends/interest -> pays tax
|
UT fund distribute dividend to unitholders -> the tax paid is "transferred" to unitholders (the correct term is "imputed")

Whether the fund distribute dividend or not does not matter, the tax (if any) is already suffered/incurred.

This post has been edited by Pink Spider: Dec 30 2013, 05:57 PM

No Dividends = Better?
In this article, FSM explain how a dividend is taxed, and whether dividends are good or bad to investors.
Author : Khor Jay Ee ....April 10, 2012
http://www.fundsupermart.com.my/main/resea...?articleNo=2234

This post has been edited by yklooi: Dec 30 2013, 10:28 PM

Happy new year guys!

Remember to update your 2013 report card!

...and be safe tonight

Happy New Year to all of you .....
may next year be a more fruitful year.

May till 30 Dec...portfolio still - 0.5%.
my Public Mutuals funds, AGE, HSChina made some $,
HSBal & Kidsave...still down..but recently moving upwards...1~2% more will switch them out to GEM and developed mkts.
under-performing funds for now are HSAO and HSAQ..both about 21% of my portfolio
fund houses made an estimated 1.0 % of the value for mgmt fees from my AUM....+ 2% SC

Did some restructuring of my UT portfolio in late Dec for 2014:

Pre-restructuring:
RHB-OSK Cash Management Fund 2
AmDynamic Bond
HLG Global Bond
Hwang Select Dividend
RHB-OSK Emerging Opportunities UT
Eastspring Global Emerging Market
Hwang Select Asia Quantum

Post-restructuring:
RHB-OSK Cash Management Fund 2
AmDynamic Bond
Kenanga Growth (new investment)
Eastspring Equity Income (new investment)
RHB-OSK Emerging Opportunities UT
Eastspring Global Emerging Market
Hwang Select Asia Quantum (enlarged position, switch all from Hwang Select Dividend)

Waitlist in 2014:
1. global bond fund (hope for Templeton Global Total Return in FSM)
2. global equity fund (still undecided)

All existing funds are in the black so far. Hopefully with my 2014 line up, i have the perfect formation to strike some goals and golds.

This post has been edited by jutamind: Dec 31 2013, 10:29 PM

happy new year everybody... 2014 will be a good year for us ya!

Wish all of us Happy New Year 2014. We look forward more growth in investment in the year ahead.

Share Exchange.

Haven't been lurking here for quite awhile.

what's the url for the Share Exchange site?

Serious ah?

This post has been edited by TakoC: Jan 1 2014, 12:33 PM

sorry thot it's a different forum on stocks or something else...