i want to share my unit trust experience, not public bank but with CIMB which i think everyone should know and be aware
i start put into unit trust at 2015 and i waiting exactly 5 years or more to provide this review

my conclusion is unit trust is only fund manager make money (short version)

ok here comes the long version
so 5 years ago May 2015 i go meet up with an agent and open account, sign some form, do some thumb print and only invested RM10,000 from my EPF.

I buy into Fund Principal Titans Growth & Income Fund (one of the hot hot fund that time)


Now after 5 years my hard earn RM10,000 only got a total of 13.50% profit

Then i ask myself why only 13.50% of profit since every year annual report show earn money most of the time except for 1 of the year where it is -10%
Below chart show from May when i buy in till now in July



If 5 years ago i did not make such decision to put money into unit trust, you know how much the RM10,000 will become?
The answer is RM13457.39 which is a 34% profit instead of now 13.5% profit



So i further investigate and dig deeper with FSM tool and the tool say i should earn around 16.5% so where the 3% go to?


Here is the answer, last time 5 years ago invest with EPF they will charge sales fee of around 3% so 16.5% - 3% become 13.5%
Again all this is just estimate

My conclusion is we take our money to let fund manager earn more money than we do
only invest in UT if u have a good and reliable agent who can help u to manage

Well, if u know how to self invest through FSM or even havr experience investing in the stock market, why would u even need an agent to begin with? I never use any agent while investing through epf-mis scheme and i have double(paper gain) my 2019 epf dividend thus far since the crash in march all the while controling my exposure and risk by limiting the amount invested and switching funds from equity to bond and back.

Some might need agent but only for those who have no idea in investing as you know a lot of agent are just salesman. As for me i have been investing in stock market since 2008 and unit trust starting from this year, the only reason for me investing in unit trust is  that the one allowed for epf-mis and because of the 0 to 0.5% fee prior to june 2020. Now it is even better at 0%, just for the record fsm sales charge is already at 0% prior to that

I thought fsm is 0.5% cash scheme?
I know epf is zero

Lol 8% is easy, some can even go up to 10-20%.

The thing is, is it guaranteed?

EPF is good is because it guarantees a minimum return of 2.5%, so it will never go below zero.

8% return is totally doable.. Some even get it higher.

With two condition ;

1. The agent must be PROACTIVE.
2. The RIGHT fund are selected.

If the agent are passive one, then it's better to just leave it in EP£ account.

Mind you, EP£ are outperforming their promise in term of dividend/return, which is they must give at least 2.5% return annually.

(Spoiler : EP£ are government Bond Fund. Bond fund can promise minimum return.)

Promising return of xx% to the client is wrong. For example, somebody said "I guarantee you 10% return p.a".

But if he/she said, "I will do my best to get up to 10% return", then technically it doesn't break the rules.

i want to share my unit trust experience, not public bank but with CIMB which i think everyone should know and be aware
i start put into unit trust at 2015 and i waiting exactly 5 years or more to provide this review

my conclusion is unit trust is only fund manager make money (short version)

ok here comes the long version
so 5 years ago May 2015 i go meet up with an agent and open account, sign some form, do some thumb print and only invested RM10,000 from my EPF.

I buy into Fund Principal Titans Growth & Income Fund (one of the hot hot fund that time)


Now after 5 years my hard earn RM10,000 only got a total of 13.50% profit

Then i ask myself why only 13.50% of profit since every year annual report show earn money most of the time except for 1 of the year where it is -10%
Below chart show from May when i buy in till now in July



If 5 years ago i did not make such decision to put money into unit trust, you know how much the RM10,000 will become?
The answer is RM13457.39 which is a 34% profit instead of now 13.5% profit



So i further investigate and dig deeper with FSM tool and the tool say i should earn around 16.5% so where the 3% go to?


Here is the answer, last time 5 years ago invest with EPF they will charge sales fee of around 3% so 16.5% - 3% become 13.5%
Again all this is just estimate

My conclusion is we take our money to let fund manager earn more money than we do
only invest in UT if u have a good and reliable agent who can help u to manage

Lol 8% is easy, some can even go up to 10-20%.

The thing is, is it guaranteed?

EPF is good is because it guarantees a minimum return of 2.5%, so it will never go below zero.

Epf return is never guaranted.they are not obliged to reveal where they invest their money.there is no guarantee in investment.u win some ,u lose some.just manage your risk wisely

Epf return is never guaranted.they are not obliged to reveal where they invest their money.there is no guarantee in investment.u win some ,u lose some.just manage your risk wisely

er.. EPF is contractually guaranteed minimum 2.5%pa returns.
thus, in what context U mean "no guarantee"? note - the post U replied to already stated the 2.5%

https://www.kwsp.gov.my/dividend#DividendRate
For all your contributions, the government guarantees a minimum paid dividend rate of 2.50% for Simpanan Konvensional.

Oops sorry.wat i mean is they can never guarantee a fixed return.if 2.5% i would suggest to put into money market.no charge and it is as good as putting in fd

Oops sorry.wat i mean is they can never guarantee a fixed return.if 2.5% i would suggest to put into money market.no charge and it is as good as putting in fd

Lol you are talking as if EPF has ever given out 2.5% interest. (1952~1959...per link above)

Do you even know what is minimum 2.5% guaranteed interest?

You are derailing so hard from the original discussion

abt 70 years ago,

I means he’s seriously comparing the minimum guaranteed rate of EPF vs putting it in FD.

Really...

Agree bro.buy in unit trust and leave it there for 10 years.unit trust never works that way.it need close monitoring too.set a % to take profit and % to cut loss.

So guys, would appreciate some opinion regarding UT.

I moved my EPF funds to Public Asia Ittikal Fund (recommended by agent back then) early 2018. The returns have been hovering around 0% and even in negative up till recently. Today checked and saw 16% return.

So my questions :
1) For those who have long term experience in UT, is it worth to redeem via EMIS with current returns? i calculated for similar compounded returns by EPF its around 14%.

2) Should i top up into the same fund instead of redeem (i.e. buying more as it goes higher)? or switch to other higher returns fund from other banks (HLB and kenanga growth funds are having much better performance)

Thanks

which UT fund(s) do you think will have a high prospect of hitting at least 6%pa returns for the next 3 yrs?
every year it misses, this losses will accumulates into your opportunity cost of leaving it in EPF.

to be frank, i know UT has been under-performing the market and even losses. In the bad market conditions last year the only funds going up are gold investment funds (up to 100% 6 months in some funds, cant remember which). So in bad times, i thought i will switch to gold linked funds or bond/fixed income funds (hedge), and switch back to equity once market recovering.

Is that a fair strategy?

it is only a fair strategy if you know when to go it and when to exit, and selected to do it with the "right" fund(s) ...

some wait for too long to react, then will hesitate to enter when they reviewed that the NAV had gone up by xx% thinking that it is already too high or still scared to enter when the NAV had dropped by xx% for thinking that more blood will be spilled yet....

will you have that emotional factor in play when the situation arises?