I didn't study any PRS fund

Yes. U don't need more than one Malaysian equity fund that focuses mainly on larger caps.

But if let's say u select Kenanga Growth/AMB Dividen Trust + Hwang Select Asia Quantum/Eastspring Small Cap, then it's okay, cos Quantum and Eastspring Small Cap is investing in small/mid caps.

First, go Google or ask Wikipedia, "what is unit trust?"

UT is an investment, NOT a deposit. Investment can go + or -, there is no certainty that past performance can be replicated in the future.

What is UT? To put it simply, the UT manager takes your money and invest in stocks of listed companies.

Please do not assume that UT=guaranteed profit, u don't go jumping around and scream "scam!" if a fund that used to deliver +20%++ returns kaboom and plunge -30% after u buy in

And this iMoney calculation will mislead newbie investors

Ok, as for the calculation...

U invest RM20,000
2% sales charge
So u will only get RM20,000 / 1.02 = RM19,607.84 actually invested, the difference is used to pay the sales charge i.e. commission
Take Kenanga Growth, past 1-yr return is +29.96%
So, RM19,607.84 x 1.2996 = RM25,482.35

This post has been edited by Pink Spider: Sep 22 2014, 05:39 PM

Yes, it's real.

Past 1 year has been VERY generous to Malaysian equity investors, some small cap/speculative stocks have been flying

This post has been edited by Pink Spider: Sep 22 2014, 05:49 PM

I lost about 25% during 2010/2011

That time I noob...I cabut, sold everything

T+2

No. Keep invested and/or top up some more

What is it that u don't understand?

NAV stands for "Net Asset Value", this term is used interchangeably with unit price.

Q1. NAV pricing and processing time
"you will purchase units based on NAV pricing of that day. However, NAV pricing for most funds will only be published by the Fund House after 5PM on the next working day"

May I know why is the publishing time is so slow (outdated)? Why cant it announces the price everytime it changes?
- Taikor...a UT fund could be holding 30-100 different stocks...stock prices changes every second from 9AM to 5AM during a trading day...u want the UT manager to update every second and post online for u see meh? And some funds hold foreign company stocks...as at 5PM today, US markets also haven't even open, not to say close, how to update?

"On T+4, your order will be incorporated into your holdings summary, purchase order is therefore fully completed."

Lets say if the NAV increases by 10% after the 4 days, will i receive lesser units from my purchase? Or the purchase is based on the first day NAV?
- T+4 is only the processing delay for the units to be shown in your holdings summary...your order will be priced on T=Transaction Day

Q2. The NAV price of the fund that I'm interested in is quite high now, should I stay away? Investment gurus always say "buy low, sell high"...

- Fund ABC issues 1 million units at Initial Offer Price of RM1.00 per unit.
- As such, at Day 1, NAV of ABC is 1 million units x RM1.00 = RM1 million. NAV price is RM1.00.
- After the end of the Initial Offer Period, ABC starts to operate, it starts to invest.
- Let's say ABC bought RM200,000 worth of Maybank shares, RM300,000 of Dutch Lady shares and RM500,000 of BAT shares.
- Let's say after 1 month,

Market value of holdings"Maybank RM180,000
Dutch Lady RM360,000
Guinness Anchor RM400,000
BAT shares were sold off during the month"

Pardon me, but why is there suddenly RM400 000 from Guinness Anchor appearing? Fund ABC only bought maybank, dutch lady and BAT right?
- This is only a sample scenario...in this scenario, the fund first bought Maybank, DLADY and BAT. But have subsequently sold off BAT and bought Guinness Anchor. Open your eyes big big

And why is BAT giving RM50000 dividend all of a sudden?
- Aiyoyoyoyo...as above, this is only a sample scenario to illustrate my points. Listed companies distributes dividends every now and then. U wanna know why? Call Directors of BAT and ask them!

Why is NAV price per unit: RM940,000 / 1 million units and not RM990000/1million units?
- Aiks...ini typo error! Thanks for pointing out

Q3 Topping up my holdings after dividend distribution pulls down my cost per unit, lower cost = higher profit.
"You hold 100 units at RM1.00 each. RM1.00 x 100 = RM100
Let's say you get 10 units extra from distribution"
I am confused. I thought we gain profit from UT through unit price increment and not units increment?
- This...to explain, involves quite complicated maths
Just remember this:
"After distribution, you get more units, and your unit cost will go down. BUT AT THE SAME TIME the value per unit i.e. NAV price also comes down"

This post has been edited by Pink Spider: Sep 23 2014, 04:42 PM

In UT, distribution =/= income

^
+100

Unit split lar

Wait for them to credit the split/bonus units

Unit split and distribution units = angpow

I just LOL-ed

Itu pusseh main Roulette taktau even with distribution, from cum-date to ex-date, 1 day, fund TOTAL NAV will still change

Previously u have a whole mooncake worth RM20

Now u have 2 halves of a mooncake (RM10 + RM10)

Still, u have one mooncake

This post has been edited by Pink Spider: Sep 25 2014, 04:28 PM

Is this sarcasm or u serious about this "benefit"?

This post has been edited by Pink Spider: Sep 25 2014, 04:36 PM

Yes, yes, yes and yes.

Remember my mooncake analogy

or maybe we will see many suicidal stray cats too

dun worry too much about unit split and distributions...just administrative delay, u will face the same whether u invest thru FSM or bank