Pink Spider: 1-1+1=1
Someone-that-shall-not-be-named: 1-1+1=2

Remember the wise man with thunderstrike analogy.

Flaming? That guy was at a gambling thread before coming to finance section here, boasting of his almost daily winnings at online roulette...with his wonderful techniques. But when others ask him to explain his methods...cannot, won't. He was blacklisted by that group ever since.

Others may have their opinion which are subjective.

But 1-1+1 WILL ALWAYS BE 1. If u think that it could be 2...good luck.

if you believe in FSM research....then try reading this. it shows the undervalued funds to focus at.
http://www.fundsupermart.com.my/main/resea...tarRatings.svdo?
but if you want consistent return soon,.....try max out your EPF contribution. (I think can self contribute max to RM 60k)....
btw, how much consistent return you are looking at? how soon is the soon?

In a bull market (in which we are currently) with a good Fund Manager making the right investment decisions, WHETHER THE FUND MAKES DISTRIBUTION OR NOT, u will still make the SAME AMOUNT OF MONEY.

Let's say u invested RM300,000 in Kenanga Growth Fund 3 months ago, and now u made 10% profit.
IF u have a time machine can go back in time and can perform Jedi mind tricks on Kenanga Fund Manager and ask him/her NOT to declare distribution, U WILL STILL MAKE 10% PROFIT. The science and math behind this is on Post #1, illustrated in the simplest manner possible.

In investing, there are 2 components:
1) U need to know your technical basics, i.e. the textbook stuff to know what is going on and why e.g. what is NAV, what distributions mean in the context of unit trusts, how management fees are calculated and charged etc
2) Market conditions

RO Player knows nothing about (1) and because (2) is in favourable conditions he is having delusions that his misconceptions about (1) are making him godly profits.

And here's the proof I did not flame...

This post has been edited by Pink Spider: Jul 6 2014, 04:05 PM

Im trying to max EPF. But from my understanding EPF u cannot withdraw anytime you want right even if its the self contribution part
I need slightly higher than FDs return aiming anything from 5-10% but consistent for my lum sum. will maintain for 3 years probably if nth goes wrong

I took some time to reply to your voodoo-maths opinion... and yet you brushed it off. It was like talking to a wall, or a blind and deaf person.

Posted by,
another person who will be ignoring your posts.

U can withdraw ANYTIME but upon withdrawal the monies will go back to your EPF account, i.e. u cannot cash out to your own pockets.

Why 3 years only? Unless u telling me you're nearing retirement age, or u gonna withdraw to buy house...

Basic rule of thumb in investing UT

1. It is the same investing before or after the distribution, it makes no difference.

2. Don't look at unit price to justify, a UT NAV at Rm0.25 is not "cheaper" than Rm1.00.
They are the same.
You own 4 unit of RM0.25 fund A is not better or stay a bigger chance to gain more than 1 unit of RM1.00 of fund B.
They are the same.

3. Fund NAV doesn't magical move on its own, it moves based on its portfolio gain/loss. UT NAV doesn't move like ordinary stock, whereby price can be up and down based on buying/selling demand.
UT NAV moves based on its portfolio worth, not a simply move figure like ordinary stock.

One can say if Fund A Rm0.25 just simply moves Rm0.025, I already gain 10%, but Fund B moves RM0.025, only gain 2.5%. But fund NAV doesn't move by cent, but based on % gain in their portfolio.

If Fund A manage to gain 10%, its fund NAV will move RM0.025, same with Fund B, if its portfolio gain 10%, it will moves Rm0.10.

4. Distribution/split unit is meaningless to actual term, you don't gain anything with it.
Before and after is the same, and it doesn't affect how the fund NAV moves nor it will affect your gain more or less.
Worst still, if distribution needs to be taxed.

This post has been edited by cherroy: Jul 6 2014, 04:19 PM

cherroy, now no more Section 108 tax imputation system. Tax on dividends is deducted at source (company profits) and the dividends received by shareholders is already considered NET TAX. Hence, distribution or not, the tax is already suffered.

This post has been edited by Pink Spider: Jul 6 2014, 04:22 PM

One minor difference may be that as Pink Spider says in the FAQ, distribution matters to people who choose to receive it as cash. Surely it matters to the fund managers too because they would need to divest assets to raise the cash to pay cash distributions. If a fund announces a relatively high distribution and many choose to take it in cash, this may have some effect on the fund's overall strategy?

One thing I realize I don't really understand is why some portion of distributions are taxed.

All funds carry some liquidity i.e. cash to meet redemption and distributions needs, if the fund has a distribution policy, surely the fund manager would have the forward planning to raise the cash in advance, not as a knee-jerk reaction ("aiya, next week need pay distributions already! what to sell???")

As for the tax thingy, see my reply to cherroy above. Almost my UT distribution tax vouchers recently have seen no tax.

Opppss, ty for the correction, This year starts already no more imputation system.

ooops cannot attach excel file..."Upload failed. You are not permitted to upload a file with that file extension."
wondering why?

This post has been edited by yklooi: Jul 6 2014, 04:52 PM

Some still taxed though, tax is mentioned in the distribution statement

aiks...u wanted to show me something?

yes,...wanted to show you an ROI estimation worksheet, to play around.
ex....if you got lump sum of RM 5000,...split 2k to FD & 3K to EQ fund that can gives at least 7% ROI
(historical performance charts, aim for funds that can gives min 7%, (if can give you > the better) for the past 5 yrs). I know past performance may not repeat it self---but at least it is a safer choice
with that split into 40FI:60EQ ratio, you can still get > 5% ROI..instead of focusing on 1 or 2 good performing funds (which may now be overvalued)
play around the different asset class and its $$ allocated

yes, thank you "wongmunkeong"...now can attach.

This post has been edited by yklooi: Jul 6 2014, 05:25 PM


Attached File(s)
 ROI_estimation.zip ( 10.67k ) Number of downloads: 27

ZIP the file first then upload
OR
screenshot the related cells and upload.
heheh - learned this when i started trying to share Excels earlier

Investment in UT is from acct 1 only. Withdrawal to buy property is from account 2 only

Hence these r mutually exclusive monies in epf

3 years as in at least liquid cash lo. Means the excesses can be withdrawn but not as cash. Goes into EPF means same as not withdraw kan pink gor

so increasing voluntary contribution is Akaun 1 or 2 ah?

Increase contribution will go to both account and be divided based on the defined ratio.