How is the IRR like after the 8 years investment?

I have several portfolio. Last year all increase in IRR but early this year I saw a drop in a couple of them. Need to check with my agent again on the latest report. Over the years I do make profit though amount is not as high as I would like it to be. I am just wondering if I should risk maintaining it or selling it off and just relying n EPF dividend rate.

Well... this year most Malaysia focus funds are not doing that great, that is why you seeing IRR drop...

In fact, some UT(s) r performing better than EPF

Hmm, suddenly so many people want to withdraw from PM. Can I claim credit for tarnishing their reputation?

Well, if the top management of Public Mutual thinks the comments in forum and fintech means nothing... let them lor; I firmly believe in market forces in a free market
The ones who don't adapt to the new norm would be the one to be left behind, no matter how big and important you are

Haha I think the older generation usually won't get affected. Only the younger one will be more opened to different opinion.

What is your opinion on this scenario...Total NAV - RM124K (combo of 8 portfolio ranging from 6%-60% return over a course of 8 years). Total Return to date is RM40k, down from RM46k in Dec.

Is this consider reasonably ok or should I consider putting a plug on PM and let the $ stay in EPF, considering that there was no new top up since 2014? Please advise. My agent as usual tells me unit trust is for the long term.

This post has been edited by honkkydorry: Sep 9 2016, 05:46 PM

Did u (i) calculate the IRR for each Fund plus (ii) compare the performance with its peers?

If switch back to EPF, you lose the average unit price. UT is you buying units, it gives return in form of distribution and CG, can't compare apple with EPF.

1k in UT gives you 4000 units (assume unit price is 0.25)
1k in EPF is 1k or less, inflation counts

Peace

Very WRONG & MISLEADING info & theory

Yeah, I saw the post and was like
It's so wrong until don't even know where to start

Nvm la, we go back to our usual playground for our higher level discussion

If the money left in EPF then will it growth better than this? The growth that you quote is based on today value over amount invested initially?

If the return of 60% is derive from the fund invested for 8 years then the max return is just at about compounding of 6% after inclusive the service charge. If the said amount left in epf then might be get about the same return, but after average with other funds that did not perform then the overall return might be not as good as epf return.

Do not under estimate the epf return because I frequently heard those agents claim if let money grow in fd or epf will erode by inflation, but some investor end up lose money, and many end up take risk to let their money grow slower.

The world rewards the diligent, leave the "others" alone.

kradun is absolutely correct -60% annualised over 8 years- the nominal return is 6% not dissimilar to epf over the same time horizon-nothing to brag about in cocktail parties anyway
kradun has also avoided using more complex maths to calculate the actual return of your investment assuming that you are contributing regularly to the slew of funds in ur portfolio. in fact he has overestimated the return
however to be fair, we also need to compare the risk vs return portfolio of epf vs pb held by the investor to determine which is a more superior investment

Trying to brag about UTF return at cocktail party is like going to a black tie event to show of your dad's 20 year old Mercedes Benz 200E. Yeah, Benz 200E, those iconic classic automobile that some old Ah Pek still use as taxi in Yong Peng or Menglembu.

UTF is akin to those Merz 200E for they are darn durable, does not break down easily, is a dependable workhorse unlike the Stallion Marque (Ferrari), breaks down easily, all show but no go. Sometimes can catch fire somemore!

Xuzen

Footnote:

I) Stallion Marque refers to some exotic derivative or commodity trading type scheme such as gold or oil.
II) Breaks down easily means they can give negative return by a lot; in another word, extremely volatile.
III) Catch fire means these schemes can just go bust and worse of all, they do not have regulator oversight to provide recourse!

This post has been edited by xuzen: Sep 12 2016, 10:01 AM

opening up, i am a agent public mutual, but i do very much different from other agent they are doing.
first thing first in public mutual those fund manager are very conservative, to add on depend which fund are you buying.

ask back your agent should I go for 100% equity? they will tell you unit accumulation , this and that. ended up epf 3% service charge or 5.5 % service charge. like this sure die very fast for the investor and make the unit trust consultant happy only.

for me most of the time i am doing a range 70% in bond which up to date giving around 5.15% from jan to August, then 30% equity. with this I am very comfortable my client will able to cover their service charge very fast. which good amount of bullet when come to a roller coaster ride.
type of equity i love most now is mix assets, up to jan to august giving about 7% but for cash only. inside the mix assets has about 50+% in bond and the rest you guess. consistence return from last year about 11%

normal, is educated around the agency, non would want to use asset allocation

correct loh, whoch agent want to have double work, keep want to find money ma....

i am really sorry to hear that, if have chance contact me, i make sure you get better then fd at the end of the day. but i guess you had lost confident.

well i have a lot of big client who dont mind to loose about 1 to 2 % year from epf, they are waiting for opportunity while they transfer from their epf to unit trust in bond , of of small percentage of equity. market we cannot predict, but we can take precaution

When I read your reply, my heart skipped a beat and thought, wow, finally someone with potential show up?
But not so fast.... gotta show some proof la

Glad you said asset allocation
So... what is your 'default' recommended portfolio? Don't give us the boring 'depends on client's risk profile bla bla'. What is the backtested volatility and annualised returns for the past 3-5 years? Note: I'm very specific, I'm not interest in year 6-10 returns because the trend has changed so significantly that I didn't think it's meaningful anymore

Part 2 - enough of standing out amongst the PM agents. How does your portfolio of funds compared to others out there? Could be CWA, or the bunch of DIY investors in this subsection

p/s: How long have you been a PM agent? why not consider selling for a FA firm or something where you are not restricted by a bunch of boring funds and bad reputation (not yet, but just a matter of time)

i know is a bit boring recently in here, 70% i place in PIINFBF at the moment is around 5+% up to date. i notice this fund since Jan and moving great in may. 30% can be either small cap or big cap. it will not really going to hurt the portfolio (EPF), but for cash i am going after PSMACF were doing 11% last year notice this fund around feb, this fund has 28% equity, 58% in bond and balance MM. earlier when i saw PEsMAGF this fund were doing 18% last year, this year were not doing well.
my fund generally help me to stay up positive after a few month due to the bond. ( my main thing is to keep bullet, when market in fear I will enter around 10-15% of your bond money)

to be true (i broke omy own rice bow) bond fund in RHB consistence giving about 7% annually return.

I had been with public mutual in 2013, but when looking at my earlier batch client loosing money already got slap on my face. looking for solution for them and new client. but now i got slap by my manager who i doing this.
but well i make sure my client make money first.

FA firm can only take in Licensed Financial Planner with Sec-Com's CMSRL license holder, not FIMM's UTC licence. Cannot simply-simply join punya.

No need to break own rice bowl, people around here are pretty well versed of the non public mutual fund returns.
Why bother to stay with the Titanic and try to do things differently when no one else want to change to the better. Surely there are better avenues out there to sell better products with better asset allocation strategies.

Go to the FSM thread for some competitor intelligence. The folks commenting there are mostly retail non-pro investors, and yet you would see better asset allocation strategies than most PM UTCs

Oops I didn't know that... soli soli
In that case right, how do they sell since the LFP supposed to only give independent advice and not distribute the funds? Is there any conflict of interest there?

p/s: LFP license shouldn't be that hard to get also right? Just ask the fella to go take la