Since you are confused about units and distributions, your tips are not a good idea.

This is something you will see from ANY investment manager/fund house/advisor all the time. Alternatively, a balanced view goes something like this:

1. OVERCONCENTRATION OF RISKS - this just means high risk, high returns.
2. MARKET TIMING - When markets are down, they say dont' time the market. When markets are up, they tell you about the handsome profits that their funds are making.
3. INFLUENCE OF FEAR AND GREED - If there is no greed, everyone would be investing in FD, and funds managers would be out of a job.

Here's my 2 sen.

It's pricing war, OPEC (Saudi Arabia, major player) vs shale oil (US major player). “It’s the question of who will blink first.”

In a pricing war, someone will blink first. Because some producers don't fancy the idea of making a loss, and will throw in the towel. The survivors are then free to start increasing prices.

Malaysia, being a net exporter, albeit a relatively small one, is caught in the cross-fire. But this phenomenon will be relatively short term. My 2 sen says that prices will be on an upward path again within 12 months.

Meanwhile, focus on acquiring those funds that have good fundamentals but have their pricing distorted by the current, temporary, aberration.

There are many articles on this, here's one:

http://www.bloomberg.com/news/2014-11-27/o...-u-s-shale.html

Manulife Investment - India Equity Fund

https://forum.lowyat.net/index.php?showtopi...post&p=69188143

Well, I did put in some, but with perfect hindsight, it wasn't adventurous enough...

Disclaimer: Not saying all my investment decisions work out well - this was simply one of the good ones in the last 6 months.

This post has been edited by howszat: Dec 1 2014, 11:53 PM

A common saying: buy low, sell high.

Question: Now that its dropped a lot, what would you do?

A. Panic, sell now
B. Wait, and panic if dropping further
C. Buying opportunity, buy now
D. Wait, and buy if stopped dropping
E. Continue regular/formula investments (DCA, VCA etc), no change
F. Wait and see what the Technicals say
G. Wait and see that the Fundamentals say
H. Sell your overseas funds

Me? C, G and maybe H (yes, you can choose more than 1)

Ah, but no one knows for sure its going to be "crushed" or not, yet.

The question is, what do you think, looking ahead?

This post has been edited by howszat: Dec 4 2014, 10:56 PM

Just to clarify, option H is more currency based, if you think that is a relevant/significant factor.

Where funds goes depends on many factors, including exchange rates.

It's been known for some time that China will "overtake" US one day, soon. What is more difficult is interpreting what that means.

While the US and most of the Western world has open accounting standards, what comes out of China is less difficult to define/confirm.

That is one of the key reasons why China funds are hit and miss, because investors are unsure what you see is what you may or may not get.

Yes, I would agree - either benchmark is inappropriate, or fund is under-performing.

Therefore, underperforming benchmark NOT EQUAL underperforming. Similary, overperforming benchmark NOT EQUAL performing.

Benchmark is one of the things you look at, but it's just one of many.

India economy was already on a bullish outlook.

Throw in cheaper oil where India is the 3rd largest import guzzler, conditions are even better.

Same goes for another import guzzler - China. Rebalancing towards China-India seems like a good idea.

Fund managers almost always DO NOT do currency hedging.

If one buys foreign equity-based funds, the exchange risk is all on the investors. The currency risk is clearly spelt out in the prospectus.

The few exceptions tend to be bond funds, where if the FM ventures into foreign bonds, they will (should) state in the prospectus that the FM may or may not do hedging.

There is no point for the FM to do hedging - the principal high-risk, high-returns applies.

Preservation of capital is not a FM's objective. The potential rewards (and all the risks) lies with the investor.

Interesting phrases and choice of words.

They "may invest". It "does not entirely eliminate currency risk". "Fund would not benefit from any upside in currency movement".

They may or they may not. When they do, it may not be significant, and they may not always get it right. In other words, you may not count too much on it.

But you are right, this is a more technically correct sentence: "Fund managers almost always DO NOT do any significant currency hedging."


This post has been edited by howszat: Dec 8 2014, 10:35 PM

Yes, quite normal.

I've stopped reading prospectus'es for that reason, too many mays and may-nots on their part, while the rest is squarely the responsibility of investors.

The only thing to get out of it is the regions/sectors they are investing in, and the ratios of equities/bonds/cash, the charges, and maybe the manager(s). The rest is waffle.

Just to mention that anyone switching to CMF, you lose the credits.

INTRA switching retains the credits. Unless, of course, you can't find something that tickles your fancy.

Never heard of intra-credits? You serious?

http://www.fundsupermart.com.my/main/faq/faq.svdo?id=2001

Most people care about having to pay the sales charge again when they don't need to.

If you want to throw your money away, that's your decision, if you had actually undertood what it's all about in the first place.

Switching INTRA, ie same Fund House, to bond, or cash fund, or any lower volatility fund, will enable you to INTRA switch back to equity funds with no sales charge in future.

Unless, as I mentioned, the same Fund House does not have an option you are comfortable with, meaning you then choose CMF. And pay the sales charge AGAIN when you buy the same equity funds.

Based on the chart, this fund as been struggling since Jan, 2014, and is higher currently. On this basis, I would sell/switch now.

As this is a global fund, there is no chance ONE small fund manager's "massive sellout" will have any effect at all. No worries on that front.

My 2 sen.

This post has been edited by howszat: Dec 16 2014, 09:26 PM