Be mindful of yearly recurring fees and how it affects our return.

The long-term impact of investment costs on portfolio balances
Assuming a starting balance of $100,000 and a yearly return of 6%, which is reinvested

Comparison of charges for a typical Bond Fund bought from FSM and PM

FSM is more expensive!



This post has been edited by creativ: Nov 3 2013, 01:27 PM

Yes, that's my personal opinion. I would go for Public Mutual if I want to invest in bond funds, at this moment.

My point is, Sales Charge is not the killer, Yearly Recurring Fees (i.e. Mgmt Fees, Trustee Fees, Platform Fees) is the killer.

So what if FSM is not charging Sales? 0% Sales charge is just a bait.

This post has been edited by creativ: Nov 4 2013, 10:42 AM

No matter how many years your time horizon is, any fees or charges on your investment is not good, so go for the lower one.

As for your time horizon of < 10 years, then you may want to consider a bond fund that invest in short to intermediate term bonds, since consensus are, that we are in a "rising interest rate environment " (I cannot predict the future, by the way ).

"You'll want to match your fund investments with your time horizons. For principal you might need over the next one to four years, choose short-term bond funds. Money you don't need right away, consider intermediate-term funds. Save longer-term funds only for money you won't be needing for a long time (or avoid them altogether if you'd prefer to avoid the volatility if rates rise)." - Rob Williams, Director of Income Planning, Schwab Center for Financial Research

Read more here--> Choosing bond funds by duration and your investment horizon

Yes, you do make sense for really short term holding. We must do the math to find the optimum holding period to give the bang for the buck.

Yup, do the math according to our own situation to see if it's worth it or not.

This is the calculation for the optimum holding period of bond fund in FSM

It is only cheaper if holding is 2 years and below for FSM.

Dude, I hope my previous post answers your question.

Yes of course . And I bet we all heard these often enough till it's almost a cliche:

(-) High Risk, High Potential returns (vice-versa)

(-) Past Performance is No Guarantee of Future Results

Ok ok.. I thought people here are mostly experience investors... It looks like I must word them correctly like a legal document If not sure kena kau kau.. despite the good intentions and the time spent to justify by being transparent in the calculation...


"Assuming risk is the same, no matter how many years your time horizon is, any fees or charges on your investment is not good, so go for the lower one"


Also, in my calculation spread sheet, you will see the word "typical" as in "typical management fees"

Btw, Public Enhanced Bond fund has equity exposure, I think that's why they are charging higher.

This post has been edited by creativ: Nov 4 2013, 12:46 PM

Not sure, must check the FSM fund fact sheet to compare (apple-to -apple) the Investment Strategy of the bond fund you're buying.

I am not working for PM nor FSM. I am just an investor who is planning for retirement using asset allocation strategy.

Well, if you would be kind enough to come up the calculation to include those fees that rather than picking on me, it would definitely help a lot of forumers here.

My future depends on it... can't say hobby too... because hobby is what we do during our past time.
Can't say profession too, because I'm not working in the financial or investment industry

This post has been edited by creativ: Nov 4 2013, 01:25 PM

Well, I'm not an agent.

Yes, you are entitled to your own investment strategy, and I respect that.

Thank you.

Why don't let the Fund Manager manage that? through a Global / Developed Market Fund?