Actually no downtrend yet, just not uptrend any more let's see how it goes

Yea now we will see who the good fund managers are

You mean you never had to use CP/M? or Applesoft DOS?

Uptrend is gone.. party is over

Correct... dividends and unit splits mean nothing in UT.. they are just done to lower the "price" without lowering the value. See a lot of people think unit trusts are like shares, they are not. The price of a ut goes up because the fund manager is good, there are no fundamentals that will cause the price to go up. Saying a fund price is too high is like saying the fund manager is too good lol. Most people don't like high prices, but they like to have the value of the fund go up. But for the value of the fund to go up, the price has to increase. But most people will not buy into a high-priced fund because wah so expensive how to buy. So we need a way to control the price but still retain the value.

So how do we retain the value of the fund, without increasing the price of the fund? The solution is to lower the price and then declare a div for the amount it was lowered. The price comes down, but the value does not change, problem solved

So that's why they do it. If the fund manager thinks people will not buy the fund because the price is too high, they will do that stuff (unit split, dividend etc.) so they can drop the price without affecting the value.

He might be right though.

And to think this fund used to be so popular the entire allocation was taken up

Ha... so lack of faith

Really they cut until 50%? wow.

So another rich person..

Basically nothing happens to your money, they cut the price by 50% and then double your units. They do this to lower the price of the UT and keep the value. Nothing changes except the price

Exactly.

Usually about one week, should update after that.

So it is. ATM issue probably caused a lot of people to lose faith in the market for a while.

This post has been edited by wodenus: Oct 3 2014, 01:02 AM

I can never understand switching.. markets here as a whole pretty much follow one another, it's just a matter of degree. in 1997 pretty much every fund in the country lost money. After that pretty much every fund in the world made it back. What is the point of switching when every market is the same? pick like 20 UTs.. and you can see the that chart is pretty much the same lol


This post has been edited by wodenus: Oct 12 2014, 03:54 PM

Not a representative sample

Go here :

http://www.fundsupermart.com.my/main/fundi...erateTable.svdo

Close your eyes and pick 20 funds. Then plot them and see the return. Unless you have an incredible amount of money, there won't be a lot of difference if you annualize it

Or we'll make it a game of chance.. given all these funds, among funds with 10-year track records, what is the probability of picking a fund that will outperform FD rates (ie. 3.9 - 4.2%) ?

Another way of thinking is this : if you bought all 20.. would you do better than FD?

Now if we throw active switching into the mix, how do you know when to switch? and how do we know that active switching will mean more profit?


This post has been edited by wodenus: Oct 12 2014, 09:07 PM

Where do you switch to then?

Why did you not pick the more promising fund in the first place then?

They don't hold your units, usually a trust nominee holds them. If they go bankrupt the nominee will usually not be affected.