some forummers buy local stocks in replacement of local focused UTs.
they would buy UTs for foreign exposures.

I buy Malaysian stocks, but also invest in foreign fund. (Just started )
No time to study foreign stocks, so rely on fund managers lor...

Personally, i DID (past tense) both as:
1. Mutual funds was programmatic - die die, every quarter or every 4 mths sure value averaging or DCA (no fear / no greed)
2. Stocks - coz "value" spotted

However, personally, moving forward, i won't be doing MY stocks as
a. my mutual funds via EPF A/C1 $ is already covering MY equities
b. i've too much % in MY equities, thus using cash to get into non-MY equities
c. i may be buying foreign stocks that are held by my foreign equity mutual funds though - again, due to my personal valuations.

just a thought

yeah, from my understanding post #912 is getting into number of units and NAV
number of units * NAV = price of moon cake (looking at it as a whole value holding)
If price of moon cake down 33%, i lose 33% whether or not 100 slices or 10 slices of 1 moon cake, right or right?

either that or i'm missing something here

from part of #912
that means MORE units will get more gains when the Nav is up the same. Right?
that will also means MORE units will get more loses when the Nav drops. Right?

how can get more units?..
1) buy more
2) ..........

sort of per slides of mooncake....more slides more monies gained if per slide increase by RM0.10

This post has been edited by yklooi: Jan 19 2015, 12:30 PM

Yes of course - buy more units to get more profits OR losses

Pls dont mix 2 items together neh
a. If get MORE units via distribution, your moon cake value still the same
VS
b. BUYING MORE units via cash/EPF = your moon cake value = old moon cake value + new extra pumped in value


Thus IF (a.) no difference coz your moon cake value up/down 20% doesn't depend on the units added via distribution (NO ADDED VALUE)
VS
If (b.) - U gain / loss the EXTRA value U added via cash/EPF (INJECTION OF CAPITAL)

tiok boh?

This post has been edited by wongmunkeong: Jan 19 2015, 12:36 PM

*buy popcorn*

Wong Seafood vs Unker Looi

Round 1...fight!

aiya - not fight lar - clarifying. i may have understood wrongly
based on understanding, YKLooi's Q is in fact 2 very different Qs, thus can't compare
a. additional units received via distribution
VS
b. additional units PAID FOR

reason:
for (a.) - something happens first, called drop in NAV, thus bottom line still the same value / moon cake held
VS
(b.) - he bought additional moon cakes, thus gains or loses MORE if the market moves up/down big time

This post has been edited by wongmunkeong: Jan 19 2015, 12:41 PM

copied from Guy3288 were he simplified my thought
"as the general impression is -> with dividend distribution, people get more units, so when price up in future they will gain more.

you are trying to show the opposite, you tell them don't be too happy, you can also lose more when the price drops, in future"

where post #912 intend to provoke thought

so is more units a doubled edged sword?

ABC Fund start with RM1.0000 NAV
Invests in Bolehland equities
Got distribution policy

XYZ Fund start with RM1.0000 NAV
Invests in Japan equities
No distribution policy

Mr Mooncake invests RM10,000 in ABC and RM10,000 in XYZ

After some time...
...both at RM2.0000

ABC declares 50 sen distribution

ABC jadi RM1.5000
Mooncake's holding is at RM20,000
XYZ jadi RM2.0000
Mooncake's holding is at RM20,000

SO coincidental ABC and XYZ also drop 10 sen

What this means?

means,
ABC drop 6.67% (10 sen / RM1.5000)
XYZ drop 5% (10 sen / RM2.0000)

This post has been edited by Pink Spider: Jan 19 2015, 12:49 PM

i think Guy3288 over simplified.
Keep in mind:
1. How much cost one paid
2. Value held

Based on (1.) & (2.), even with distribution, same result at POINT A right? (after distribution)

Then move forward 1 year, POINT B - goes up/down 20%
Thus at POINT B, one's net profit/loss also + or - 20% from POINT A right?

Thus, no matter what, look at (1.) and (2.)
If (3.) add more units via adding more cost - that must be taken into account lor (into 1. & 2.)

yar?
Step in/out (sorry - software developer here heheh) - U'll see the sequence and logic impact.
again - have i missed something crucial (hoping i did, thus learn something new)

This post has been edited by wongmunkeong: Jan 19 2015, 12:51 PM

Unker,

Think %...%...%...%!!!

A mooncake is still a mooncake whether u slice into 4 pieces or 8 pieces or 16 pieces!!!

The biawak shit on your mooncake hit 1/4 of it...

If slice into 4 pieces, u hit 1 piece (unit)
slice into 8 pieces, u hit 2 pieces
slice into 16 pieces, u hit 4 pieces

THINK IN PERCENTAGE!!!

This post has been edited by Pink Spider: Jan 19 2015, 12:52 PM

OK,..just forget about the %,.....just replace it with RM0.1...is the logic still stand, where More units will get more/less $$?

Sorry,..still kena shit jammed in my head again...
my selling price is per slide..more slides more money made/loss right?

1 biji mooncake is RM16
4 slice u sell RM4
8 slice u sell RM2
16 slice u sell RM1

IF market price per slice of 1/16 naik 20 sen (for the sake of discussion, assume zero labour cost, ok???)

16 slice u sell RM1.20 (naik 20%)
8 slice u sell RM2.40 (naik 20% also)
4 slice u sell RM4.80 (naik 20% also!)
1 bijik u sell RM19.20 (naik 20% also!!!)

your argument/assumption is like...

if market price for 1 biji naik to RM24 (naik 50%)

u gonna sell 1/16 slice at RM2.40? mau mati ar??

This post has been edited by Pink Spider: Jan 19 2015, 01:08 PM

From my 2 cents...

Ur NAV up $0.10 is from what NAV? Ur Fund A & Fund B, what's it original NAV? U didn't indicate their NAV so difficult to justify ur theory...

I like it.

I think the original Nav is not related here....the RM0.1 is
if you want try data from post#916...
thanks for HELPING..

Another way of explaining distribution...

U start a chicken farm with 10 adult chickens, RM10 per chicken
- NAV RM1.0000
TOTAL INVESTED: RM100.00

After some time the farm (ALREADY) grow to 100 adult chickens
- NAV RM10.0000
VALUE OF INVESTMENT: RM1,000.00

Refresher course on NAV:
NAV = NET ASSET VALUE
Assets less Liabilities
All profits/(losses) and gains/(expenses) must be recorded in the accounting books IMMEDIATELY when it occurs, not only during year-end close account/pay dividend time

Your farm manager, Mr Chicken King tell u...

"Bos! Your farm is very profitable, now I declare to u, income distribution...10 chickens!"

NAV of your investment in the farm is now...RM9.0000. RM1.000 is the SUPER doper income distributed to u



Next day flood happened...

As a result 20% of your chicken went swimming at Sungai Klang

Your NAV drop to RM7.2000
Your TOTAL INVESTMENT VALUE: RM800.00

What if Mr Chicken King did not declare distribution?

Can someone answer on my behalf ar...I very tired already

If I continue further, I need a steering lock to wallop Unker Looi already

This post has been edited by Pink Spider: Jan 19 2015, 01:37 PM

what if, I buy 1 mooncake at RM 10, I cut into 10 slides and sell at RM2 each...
if during GOOD mkt, I cut 11 pieces, sell at RM 2.10 each....