Thank you very much for the details explanation and analysis! This info is exactly useful to have a better understanding why investor would park their in money market fund.

Anyway what is the different between an equity fund and bond fund?

And thanks for sharing about the DCA. I am looking forward to DCA method of investing into the few fund you recommended.

U need to go thru public mutual learning center.

http://www.publicmutual.com.my/Resources/U...ustLessons.aspx

Juz brief Equity Fund = fund mainly that in stock
Bond Fund = fund mainly in BOND

What is BOND and Equity try google.

This post has been edited by felixmask: Jun 26 2015, 11:46 AM

PM will launch PB Dividend Builder Equity Fund on 30/6
Initial price @ 0.25 from 30/6 to 20/7

The Young, the Old and the Restless

The Old and Retired Investor

This is a continuation of the previous post, dated 6th June, which address the young investor who has time on his side.

Needless to say, the older investor who is at or nearing retirement age does not have this advantage of time on his side. This time disadvantage plus the fact that he is retired or soon to be retired, and without the support of income from his day job, will make the older investor more risk adverse than the younger investor.

Risk adverse is a fancy way of saying that the investor has more fear of losing his money. When the stock market goes down, this fear will more readily surface.

In the time disadvantage: the investor would think he is running of time and will not have the patience to wait for the market to recover and rebounds. In the no income/job disadvantage: the retired investor can’t simply go back to work and earn back the lost.

These 2 factors together might make him pull out with a lost. And worse still, stay away and never to return, thus incurring the lost permanently.

Thus the fear of losing money is understandable to the older investor. And if investing into unit trusts is something new to him, this fear is compounded.

He would probably make the same mistakes as a younger investor would also do, but the younger investor has time is on his side, and could patiently correct the mistakes by adjusting his selection of funds and/or the ratio of the funds in his overall investment.

With these 2 disadvantages in mind, it is not easy to make any suggestion towards a DIY of having unit trusts to fund the retirement. It would not be irresponsible to suggest getting professional help and advice if the older investor can afford it.

(If this direction of seeking a licensed financial advisor or planner is taken, please be aware of all the charges and any hidden motivation behind the recommendations.)

Before we get too far ahead with how to do a DIY investment, we should ask ourselves how much is enough to begin with. This will boils down to how much is needed to fund the retirement. It can be modest or very luxuriant, your call.

So decide first how much you need per month. Then multiply it by 12 to get the annual amount. Then multiply this annual amount by 25, to get the total amount that you will need to support the retirement without the danger of running out of money before you kick the bucket.

Why 25 times? Because by withdrawing a conservative 4% (or 1/25%) annually from the pool of retirement fund that you have, you will have a 99.99% chance of never ever running out of money. And the pool of retirement fund is still there to support your spouse and family when you’re no longer with them.

This 4% withdrawal principle is the basic base and principle to understand and built upon. Once this basic principle is clearly understood, you can have a variety of various alternatives and options to use and to modify to your own preferences and requirements.

One method in determining the retirement fund is dividing a blank piece of paper into 4 boxes; putting the basic and must-have needs in one box, the extra needs and nice-to-haves in the 2nd box.

In the 3rd box, the permanent 100% sure-have retirement income, for example pension, or interest/ dividend from Fixed Deposit or fixed-priced unit trusts. You may also decide to put in rental income and dividend from bond fund into this 3rd box. It is up to your own good judgement.

In the 4th box, the income that is not 100% guaranteed but can be expected.

(See this article for more details: http://www.marketwatch.com/story/retiremen...tegy-2012-11-08 )

In short, this 4-box method will help to guide how much we should have, and whether we are ready for retirement. It will also aid in deciding how much risk we can afford to take, as indicated by the 4th box and comparing it to the 2nd box.

In my view, the investments in 4th box should not be too conservative, but at the same time should not be overly aggressive and too risky, the right balance would be a 6% to 10% return, such that by withdrawing only 4%, there is still growth in the investment, and together with compounding effect, the 4% withdrawal rate is self-adjusted for inflation over the years.

And the 4% withdrawal rate is by no means a fixed rate. As mentioned, you can do a variation of it. Maybe withdrawing an extra percent or two when the market is fantastic in that particular year, and put the extra money aside (in cash or FD) for the next year.

Maybe withdrawing at a higher percentage as the years go by and drawing down the reserved pool of funds if the circumstances have changed to have a smaller reserve of money to leave behind.

(Please note that the compounding effect work both ways – when the return is negative, it will compound negatively too!)

Hopefully, when the balance between expenditure and income is even, and the mixture of conservative and aggressive funds is right, there is no necessary and needless adjustment and readjustments in the portfolio of funds. Just sit back and enjoy your retirement!

Cheers.

Next: the Restless Investor.

good read, but kinda long leh

Public Mutual declares RM178m distributions for 13 funds

URL: http://www.thestar.com.my/Business/Busines...unds/?style=biz

Public Mutual launched a new fund, PB Dividend Builder Equity Fund (PBDBEF). PBDBEF is an equity fund that seeks to provide income by investing in a portfolio of stocks which offer or have the potential to offer attractive dividend yields.

PBDBEF will invest 75% to 98% of its Net Asset Value (NAV) in equities focusing on stocks which offer or have the potential to offer attractive dividend yields to provide both regular income and capital appreciation. The Fund may invest up to 25% of its NAV in foreign markets, therefore offering investors wider diversification opportunities.

The initial issue price of PBDBEF is RM0.2500 per unit during the 21-day initial offer period from 30 June to 20 July2015. The minimum initial investment is RM1,000 and the minimum additional investment is RM100. During the offer period, special promotional sales charge as low as 5.00% of the initial issue price per unitis extended to the purchase of units of PBDBEF, terms and conditions apply.

Furthermore, during the period of 30 June to 20July2015, investors who opt for Direct Debit Instruction with PBDBEF
will enjoy a special promotional sales charge of 5.25% of NAV per unit for as long as the Direct Debit is active. Terms and conditions apply.

Hello Everyone,

I've been following this thread for awhile and been reading a little here and there about mutual funds, so wanted to ask you guys for some advice. =)

1) As a new investor, do you think I should approach the bank directly and request for an agent or try out on my own once I build enough knowledge?

2) I have a friend who tells me that Public Mutual's initial service charge is very high at 5.5%? Where as other banks are usually just at 3%? Is this true? I still do not understand how this works so...need to do more investigation.

3) Regarding the funds themselves, is it normal to have all your money in 1 fund or split your funds into different funds according to your wanted portfolio?

4) How frequent do you monitor the funds? - Monthly?

5) Can explain more on how the dividends work for stock portfolios?

Sorry for the noob questions. Thanks a lot for the help.

mine 2sen
1) must get agent that really can share you information; how the fund performance in the past, and what the fund invested.
Some agent have such information.
But Agent also not GOD; they cant predict the future which one better for customer ; UT also can loose money if dont understand well.

thru Bank - may deal different ppl handle your request ; need to go bank to do and follow bank time
Bank staff - also need knowledge of the fund.

2) Yes their service charge higher u need to find Fund House which is cheaper. Im not sure the bank sale charge - but i know BANK sometime come promotion for higher FD rate need to invest certain amount allocated in UT.

3) Best is diversify - but understand what the fund invested ; like geographical area; type of fund; the strategic/objective fund invested.
Like different fund but focus on CHINA only; then this not diversify. Equirty or growth or income; or bond type.


4) Up to you how u want to monitor - ur spirit good can monitor everyday after awhile lazy to see the movement very slow.
When start to topup u may want to decide which one to invest- every month want to toup sure u want to see the monthly fund performance

5) UT dont give divident but distribution - Dividend in stock is very wide - some dividend are special dividen; dividend from their cash flow; dividend % promise to given; cycle dividend ; dividend yield, substainibility divident, divident ex date etc...


U can go thru the stock exchange to read.

Thank you

What is the standard agent fees? 5%?

Any gains for these investment is considered as taxable income? Have to declare?

5.5%

UT MOSLTY single -Tier..once you receive the distribution automaticall will deduct the tax..therefore u dont need to do anyting.
SUmmary you get nett amount after deduct frm gov tax.

What if i sell and totally quit the fund? Automatic deduct tax?

only distribution has Tax.

While withdraw...dont have.

Im not sure GST,


Mine UT is for long term ...

I want to seek advise, if I can consistently do DDI monthly and will invest more than 10 years, which fund will give better return?

1. Public regular savings fund, has consistent dividend.
2. Public strategic small cap fund, new index fund and has potentially upside growth.

Need your 2 cent advise. Will consistent dividend or potential upside growth give better return?

while waiting for more value added responses.
I think it is good to have a look at
page 2, post 24

also, it is also good to google for the differences between dividend in stock vs dividend distribution in Unit trusts.....(a lot of different)

also it is good to be caution and do your own due diligent because that at times some part of this as in page 2, post 40 can happens
https://forum.lowyat.net/topic/3650451/+20

This post has been edited by T231H: Jul 17 2015, 01:45 PM

PM will launch new Fund on 22/7
Name - Public Select Treasures Equity Fund
Target - Mid n small cap stocks
Market - Bursa
IOP - 0.25
Period - 22/7 to 11/8

Public Mutual's latest fund to capitalise on Bursa mid, small-cap stocks
http://www.theedgemarkets.com/my/article/p...mall-cap-stocks

Gud timing?

Yup, good timing to Tan Sri to triple fold his income

Public Mutual declares RM424m distributions

KUALA LUMPUR: Public Mutual has declared distributions amounting to more than RM424mil for nine funds for the financial year ended July 31, 2015.

URL: http://www.thestar.com.my/Business/Busines...ions/?style=biz