[Bond is for stability; equities for return, not the other way around]

Repeat this mantra x 10,000.

Lessons from investment:

don't chase bond yield, chase bond stability...

Ride the equities momentum, don't be contrarian.

Xuzen

Nope, you have to read the Fund Fact Sheet to know exactly.

Some fairly predictable nature of fund name, if you see the following words in the fund name:

I) "Income" it denotes regular periodical distribution (once a year or twice a year)

II) "Tactica/Balance/Dynamic" it denotes balance or mixed asset fund where the FM has the mandate to invest in both equities and bond

III) "Growth" denotes a high equity exposure fund.

IV) "Total Return" usually indicate the fund has a targeted rate of return.

Xuzen

Look at the fund fact sheet; you will see a volatility factor on the top right hand corner. For a bond fund, you want that to be as low as possible. I would say anything below 2.XX is considered good.

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A1: If you are like me an active manager, then wrap account is the way to go to cut cost.

A2: PTR = didn't count, don't care. I rebalance monthly... which is also my monthly top-up using VCA methodology.

A3: It all depends. If you are using Public Mutual where the switch cost is a flat RM 25.00, and if your sum is big say each switch is RM 5,000.00, then the cost is 25/5000 = 0.5% per switch which is comparable to paying your normal stock broker trading stocks in BURSA. But bear in mind full agent service like Pub-Mut incur a 5.5% one off of sales charge.

If you are using FSM, the switch is calculated based on percentage.... even at 1% per transaction, it is going to be expensive cumulatively. So wrap is still better.

A4: Yeah, every ringgit of new money injected is subjected to a one off sales charge. Basic package is 3%/1.5% meaning 3% one off initial charge, 1.5% annual maintenance fee. However, like I said before, if your sum is big enough, you can always nego with the Lic Financial Planner. I got a 0%/1% deal coz I told him to ignore me, I will do everything myself and I am actually "tumpang'ing" his account to do my own stuff....

Xuzen

Inter or intra ... I don't giveth a darn coz me get free unlimited switching for all my transaction (because I use wrap account).

Xuzen

Lu ingat ini wrap account sama macam itu Public Mutual ar? No 90 days lock in period wan lar.... today masuk Lee Sook Yee esok keluar masuk lagi Esther Teo no problem wan...

This post has been edited by xuzen: Jun 4 2015, 12:13 PM

Eh? I tot you are into Vietnam flavour wan? Local ones you still interested meh?

Xuzen

Dirty Old Man (DOM).... still can or not? (without the lil'blue stuff).

This post has been edited by xuzen: Jun 4 2015, 12:16 PM

I wish to highlight about XIRR for return less than two years....

Some hero will gain 2% in month, and be boastful and shout... XIRR = 24% p.a. Hello, don't be so cocky... one month nia, XIRR over a longer period of time and is only meaningful to check for your consistency.

For short term, just use ROI.

Xuzen

If sure win... then no need all these Sharpe Ratio, volatility index and "gasps" ..... Algozen™

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sum up the total asset divided by units available = net asset value per unit aka NAV!

Your question is confusing.... let me explain why?

A) Are you referring to whether the fund is good or bad by judging how well the fund manager is tracking the benchmark which the fund is pegged against?

or

B) Are you referring to whether the fund is good or bad by judging how the index which it is pegged is going to perform in future?

Think about this for a little while.... option A or B answer will be very different.

Xuzen

Over the long weekend, while some are on holiday poor poor lil'o me was tinkering with my BFF, Algozen™.

I ran simulation on putting money into Eurozone, US, Tech Sector, India, China, Asia-Pac, bonds etc.

After many simulations, Algozen™ keep on insisting I put my money into China and surprise surprise .... a small % into M'sian small-cap for diversification.

She also told me to short India (meaning there is a good chance India will face more downward pressure).

p/s I did not do US small cap (Russells 3000) but I recall from my CIO newsletter, he said when S&P hit sky high, one should look at US mid to small cap exposure.

Disclaimer: I am not putting any money into US (Big nor small cap) at the moment.

Congrats for your balls of steel... Japan slipped from my radar because that fund do not have three years rolling data (one of my exclusion criteria).

Xuzen

Wahai saudara Woonsc, semoga saudara memperolehi rezeki yang lumayan daripada perolehan jualan Dana Sexy ini...

Xuzen

errr...tell me why should we be bother about a kucing-kurap economy again?

Xuzen

They'll come back... they always do. I have said before and I say it again, KLCI is a beta play... fund managers esp foreign fund will always come back to M'sia to seek stability when other bourses becomes too volatile. When there is a bull run in other part of the world, they will sell M'sia and go elsewhere to seek alpha (excess return wrt market) and when they bull run ends, they will come back to park the money here and wait for the next bull run somewhere else.

Reversion to mean will happen all the time, because a mean is where the observation in a set of sample occurs most frequently. Hence, mean is where the most likelihood of a collective outcome will happen.

Xuzen

Small Cap is a great diversifier! Keep it. And together-gether lets' go eat dim sum (greater China)!

Xuzen

YKLooi,

These news are only important to you if you are those contra players or day traders. If not, don't bother with it, these are media porn... exciting to see, but is totally useless to long term investors.

For real important stuff... just listen to Algozen™

Xuzen