Yes.

As I've said, u won't go wrong with CMF. You can literally dump all your excess cash there, then slowly buy into other funds. It's an excellent "parking" facility.

This post has been edited by Pink Spider: Sep 8 2014, 11:29 AM

Thank you a lot man.
U gave me quite some confidence. I'll do that first, and slowly learn my step up

the siggy...

sekiranya dia membuka akaun hanya untuk melabur ke dalam CMF, apabila dia ingin bermula untuk melabur ke dalam dana yang lain, dia tidak dapat memanfaatkan diskaun yang diberikan kepada ahli baru. tetapi kalau nilai pelaburan bukan banyak sangat, 1% beza mungkin tidaklah begitu ketara.

Hey gurus! I am a newbie in investment and I have heard a lot of people around me saying that UT is more dangerous as compared to FD and the return is lesser than FD. i know its very subjective when it talks about the return (pros know how to earn more as copared to noobs) but do you guys think a zero-to-investment guy like me should venture into UT rather than FD? fyi, i am a busy student with a saving of around rm40k

omg, a student got 40k savings. i started working few years then only got 40k

Perhaps via FAMA

Why post in BM

If u ask me, wait until u got regular income before u invest.

I can directly invest into other funds. But like pinkspider said, I should be ready with some emergency funds as well to cover myself in case investment didn't turn out well. 1%.. I think I can tolerate for it. No problem

But i am not gonna use that money

What if got some unforeseen emergencies? Can your papa mama fully paid for it? If yes, then u may invest.

But I don't recommend to invest in one lump sum. Try to spread it over 12 months perhaps, buying in bits by bits.

Because u don't have income, don't be too aggressive.

These are the funds I suggest u to look at (not exhaustive list, u can try study others too:

Kenanga Growth or Hwang Select Opportunity or Eastspring Equity Income
CIMB Asia Pac Dynamic Income
Aberdeen Islamic World Equity or KAF Global Equities
Kenanga Bond or RHB-OSK Income Fund 2 or AmBond

A portfolio of 4 funds would be good enough. As for what % to allocate for each fund, that is up to your discretion. Study the FSM Recommended Portfolios to get an idea

Most FD is capital guaranteed and PIDM insured. So therefore it's "secured" and returns are "guaranteed".
Return as of now is about a max of 4% annually



UT on the other hand is not capital guaranteed.

The average return of UT (that is available on FSM) is about
1 yr: 11.3% annually
2 yr: 9.69% annually
3 yr: 8.79% annually
5 yr: 8.09% annually
10 yr: 7.98% annually

Out of 219 funds that are available (that has more than 3 yrs of data), looking at 3 yrs performance
9 (4%) had -ve returns
35 (16%) has less than 4% return annually
the rest, 175 funds or 80% had above (and mostly way above) 4% return

So in conclusion (in FSM, taking into account only funds that is longer than 3 yrs old), 80% of UT has better or WAY better returns compared to FD. And that's taking today's FD rate (it was lower previously).

Additional thoughts:
Best to use the 10yrs+ returns as expectations management
The 1-5 years we had is higher due to:
a. 2008-2009 1st qtr "crashed" level
b. 2009+5 years = 2014
c. Thus most funds if measured from 2009 are super performers (ie. not the norm)...
just like some "super investors or traders" thinking it's skill these past 5 years VS return to mean (me included )

Just a thought

Absolutely superb idea!

Now... let's see... Taking 10 yrs performance only, there are 90 funds with data

0 (0%) funds returned -ve (great news!!)
10 (11%) funds returned less than 4% and...
80 (89%) funds returned more than 4%!!!!
and 25 of them (which is 28%) returned >10% per annum.


So in this case study, all the funds are pretty safe and 89% of them outperform our current FD rates.

A Landmark Initiative to Boost Returns for China Equity Funds?

With the pending launch of the Shanghai-HK Connect, investors in both markets will soon be able to get access to stocks which were formerly inaccessible. We spoke to several fund managers on the implications for their respective China equity strategies... Fundsupermart... September 3, 2014

https://secure.fundsupermart.com/main/artic...ity-Funds--9714

China rush again?

Hi, where are you getting these figures?

cause i can't seem to find it. i kinda need this for work.

From FSM website

This post has been edited by polkiuj: Sep 9 2014, 09:48 AM

guys (and girls), i just want to ask how wise it is to blindly follow FSM's portfolio recommendations?

imma complete newbie wanting to get into mutual funds, been researching around and reading a bit. FSM's portfolio seems extremely convenient and makes sense *for the most part* but are these truly the funds for each segment (global equity, bond, dividend etc) or are these the best from funds that FSM are dealing with? coming from a completely unrelated non-finance background, all i want to do is to park some money into some funds and watch the principal grow into 'something' 3-5 years down the road ^^

"all i want to do is to park some money into some funds and watch the principal grow into 'something' 3-5 years down the road"

if just "something".....try bank FD or Cash Management Funds?
http://www.fundsupermart.com.my/main/resea...ad=ed_cmf_story