Apr 27 2015, 10:12 PM
QUOTE(xuzen @ Apr 27 2015, 04:23 PM)
Sexy fund has a volatility factor of 18% averagely based on 3 year tracking. This means it can swing +18% or -18% on its mean up to 2/3 of its tracking time or it may even swing wilder 1/3 of the time.
So far, in one month, my Sexy has dropped i.e., -7% and it can actually go lower or swing the other way because it is still within its volatility band of +/- 18%. So, Sexy is behaving "normally". If you find that you cannot tahan its spiciness, go get a less exotic one e.g., a plain vanilla flavoured Ponzi 2.0.
Why then do you ask, still got crazy people go for such "risky" fund wan? Well, based on its fact sheet again, it has an annualised return of around 18% p.a. So, higher risk tolerance individual such as myself may want to include this fund in my portfolio as a booster or for the thrill factor. I gambled that it may gain +18% (averagely) +18% (additional upside gain) = 36% p.a. If I am right, then I gain extra $$$, and if I am wrong, I lose some money, but since I cap it to a max of 20% of my total portfolio, my total loss will never be more than 20% of 18% = 3.6% averagely of my total portfolio.
That is why, buying fund can be fun when you know how to manage the rate of return and its corresponding risk.
Hope you guys learn something new today.
Xuzen
SO it is good time to buy this Manulife India fund now, no risk no gain.So far, in one month, my Sexy has dropped i.e., -7% and it can actually go lower or swing the other way because it is still within its volatility band of +/- 18%. So, Sexy is behaving "normally". If you find that you cannot tahan its spiciness, go get a less exotic one e.g., a plain vanilla flavoured Ponzi 2.0.
Why then do you ask, still got crazy people go for such "risky" fund wan? Well, based on its fact sheet again, it has an annualised return of around 18% p.a. So, higher risk tolerance individual such as myself may want to include this fund in my portfolio as a booster or for the thrill factor. I gambled that it may gain +18% (averagely) +18% (additional upside gain) = 36% p.a. If I am right, then I gain extra $$$, and if I am wrong, I lose some money, but since I cap it to a max of 20% of my total portfolio, my total loss will never be more than 20% of 18% = 3.6% averagely of my total portfolio.
That is why, buying fund can be fun when you know how to manage the rate of return and its corresponding risk.
Hope you guys learn something new today.
Xuzen
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telur kecut bro...
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