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Fundsupermart.com v6, Manage your own unit trust portfolio

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tcchuin	Jul 5 2014, 09:19 PM Return to original view \| Post #1
On my way Senior Member 511 posts Joined: Nov 2007	imo there is no difference in buying before or after distribution.
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tcchuin	Jul 5 2014, 10:23 PM Return to original view \| Post #2
On my way Senior Member 511 posts Joined: Nov 2007	QUOTE(RO Player @ Jul 5 2014, 09:47 PM) case 1 say you purchase RM10k at 1.000 = 10k units i) if your nav price goes up to 1.5 = 10k x 1.5 = RM15k, gain of RM5k (within a year) ii) distribution of 6 cents/unit at 1.60 nav ---> 1.00 nav , (10k x 0.06/ 1.0) additional 600units --> 10.6k units case 2 and you purchase RM10k at 1.40 = 7.142k units i) if your nav price goes up to 1.5 = 7.142k x 1.5 = RM10.714k (within a year) ii) distribution of 6 cents/unit at 1.60 nav ---> 1.00 nav , additional (7.142k x 0.06/ 1.0) 428.57units --> 7.571k units diffence in units... err you're comparing about 2 funds which one increased from 1.4>1.5 and 1 to 1.5. of course there will be difference.
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tcchuin	Jul 5 2014, 10:24 PM Return to original view \| Post #3
On my way Senior Member 511 posts Joined: Nov 2007	QUOTE(cappuccino vs latte @ Jul 5 2014, 10:04 PM) There is no different if you compare net value before distribution and the day the distribution happen. But bear in mind the story is totally different on the 2nd day from the distribution onwards. There may be lower NAV on the 2nd day after the distribution, hence you have a good chance for grabbing more units. but isn't you investing same amount of money and your return will still be the same whether you bought it before or after the distribution?
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tcchuin	Jul 5 2014, 10:33 PM Return to original view \| Post #4
On my way Senior Member 511 posts Joined: Nov 2007	QUOTE(RO Player @ Jul 5 2014, 10:26 PM) same UT funds, but different nav prices...so moral of the story, buy when low or after distribution...to maximise units.. lets say there is a fund which has NAV of rm1. it doesn't do distribution. you invested rm10000 in it, and after a year the price increased by 10 percent. so you get rm11000. in the case where they doubled the no. of units and halved the nav, you'll get 20k units. if the price is increased by 10 percent, you'll still get rm11000 in the end.
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tcchuin	Jul 5 2014, 10:34 PM Return to original view \| Post #5
On my way Senior Member 511 posts Joined: Nov 2007	QUOTE(cappuccino vs latte @ Jul 5 2014, 10:29 PM) Sorry, I need to clarify that if the 2nd day's NAV is even lower than the distribution day's NAV, then it is the best time to top up and grab more units. well i thought as long as the price goes down (not because of distribution), it can be a opportunity to buy more units with the same amount of money?
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tcchuin	Jul 5 2014, 10:37 PM Return to original view \| Post #6
On my way Senior Member 511 posts Joined: Nov 2007	just realised that there's explanation in the 1st post. » Click to show Spoiler - click again to hide... « Just a simple example to illustrate, but that's essentially how it works... You hold 100 units at RM1.00 each. RM1.00 x 100 = RM100 Let's say you get 10 units extra from distribution. After distribution you hold 110 units at RM0.9091 each. RM0.9091 x 110 = RM100 Now, let's assume you top up RM10 after ex-date, RM10 / RM0.9091 = 11 units bought Value of your holdings now: (110 + 11) x RM0.9091 = RM110 Initial value: RM100 Top up: RM10 Total: RM110 Yes, topping up after distribution ex-date brings your unit cost down. BUT AT THE SAME TIME the value per unit i.e. NAV price also comes down - IT MAKES NO DIFFERENCE whether you top up before or after ex-date. Cost per unit in UT means little in isolation, the difference between cost per unit and NAV price multiplied by your units held is what matters.
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tcchuin	Jul 5 2014, 10:46 PM Return to original view \| Post #7
On my way Senior Member 511 posts Joined: Nov 2007	QUOTE(cappuccino vs latte @ Jul 5 2014, 10:43 PM) How about the calculation on the 2nd day after the ex-date? Let say the NAV is even lower than on the ex-date. it's the same as if there's no distribution at all. you can never know the dropping of price when there is no distribution.
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tcchuin	Jul 5 2014, 11:00 PM Return to original view \| Post #8
On my way Senior Member 511 posts Joined: Nov 2007	QUOTE(RO Player @ Jul 5 2014, 10:52 PM) look at bigger picture...pointless to argue...same b4 or after distribution.. everybody want to maximise their profit...thats all. if you think u are right...go ahead..nobody stopping you. as after as i know, my portfolio is almost +-2.5%/per month profit, target about 20 to 30%/year of invested value (ROI). good luck to earning more. mind sharing your portfolio? but i think it's important to clear up the myth so that you don't only invest in one go after distribution.
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tcchuin	Jul 5 2014, 11:20 PM Return to original view \| Post #9
On my way Senior Member 511 posts Joined: Nov 2007	QUOTE(RO Player @ Jul 5 2014, 11:03 PM) no need to reveal...to person who think he knows better & argue over small petty things. up to you to take the good point or not as when i post. p/s. another 4 to 5 years to go, as i am currently building up my financial freedom...i.e. dont need to lift my finger, to get RM 5k to 7k/month.. lol if one isn't even willing to discuss, then why are you even on a forum? I'm willing to learn and to clear my misconceptions if I'm wrong. I'm not even arguing. oh well, whatever. good luck.
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