Is it worth it to invest using epf? My colleague told me that now is a good time to invest in pm..

read post# 980 page#49
just posted by forumer today

Hi, hard to digest in this topic but I make it a simple question

Open 1000 for an account but every month add 300.

The question is, it is easy to add fund maybe like m2u transfer without agen? Gonna invest for a long time > 20 years. I don't want auto deduction on my bank account.

Not sure about PMO but FSM do have such feature with lower SC

But you need to ensure what fund you invest

For PMO i can invest fund like Public SmallCap and for FSM like Kenanga Growth right? Minimum for FSM is 100?

Normally rm1000 to start and rm100 to top up, however you can start with 100 by subscribing to RSP (monthly regular saving) in FSM

You are right, but is better to compare the same sector region and class between peers to see which fund house provides the best return or risk return ratio

Any PM fund in foreign currency? Did a simple google but can't get any useful info.

You can check from here https://iportfolio.com.my/screen

If dont have means there is no FCY mutual fund by PM

tqvm

My friends said now will be a good time to buy unit from PM since the price is lower than before..

Now is a good time to buy, but not necessary from PM

To give you an idea, compare top 7 MY funds from PM vs top 7 MY funds in Malaysia


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I see..
Actually which part in the column is the most important one that I should take note? The YTD?

There are a lot of ways to look, each column provides different meaning

For example, the 3 year risk return ratio is the 3 year annualized return generated per unit of risk being taken.
Generally, the higher the number, it means that within the same class of fund (equity / fixed income), it generate better return given the risk it took
Lower number generally means the risk you need to bear doesnt worth the return it generated.

the other cumulative performance data with different dates tell you about how each fund perform for different period, whether some funds perform better or worse recent or long term wise, which can generate better or certain returns than others

for more comparison on your research, refer to iportfolio.com.my or fundsupermart.com.my or bloomberg or morningstar, but the main idea is this:

PM is only on of the many fund houses in Malaysia, each fund houses had different strength in certain areas of performance, and as you will see, for each region/sector/class, they topped by different fund houses, therefore, it is important to research and compare before you decide which is better to invest, be open minded in exploring information

This post has been edited by AIYH: Jan 11 2017, 03:45 PM

Thanks for the insight...

and for the bold part, based on your example, what is the lowest number for return that is considered as worth the risk?

This post has been edited by eastwest: Jan 11 2017, 04:17 PM

IMO is hard to interpret it as a standalone value

For example, money market tend to have high RRR due to low volatility/ nil fluctuation, however that return may not be what you desire

RRR is best to compare with several funds

For example, within malayisa region equity fund, you can compare which fund has higher RRR compare to its peer, it will generally means that given the risk it takes, it can generate better return than its peers

Its best to compare it in conjunction with their return within the same period the RRR were measured

The picture I attached previously were sorted by RRR descending, so the top one usually can be intepreted as the better fund that can generate high return for its volatility

That is the basic way to choose a good fund, if you want to go deeper, you proceed to study each fund's FFS, PHS and annual report to understand what they invest and why such a difference between funds

This post has been edited by AIYH: Jan 11 2017, 04:36 PM

Thanks for the great guides, @AIYH do you mind to share your thought on smallcap fund either public or eastspring, these fund is it consider high risks if we consider mid term investment like 3-5 yrs from now?

There are so many terms in this topic that I don't know yet... So many things to learn..

Thank you again.

PM SmallCap is a OK fund, but it has got a much better peer in the same class - the Eastspring Investments Small Cap Fund. Be it over 1, 3, 5 or 10 years, the Eastspring Small Cap Fund outperforms the PM Small Cap fund.

Edit: Of course it goes without saying that Small Cap funds have a high volatility, so it should never be a short term investment (1-2 years). It should ideally be a long term investment for 5+ years. This is because it could swing from +30% to -20% to +10% to -5% to +40% in a five year period for example due to the volatile nature of the small cap market. But once you annualize it over a long term, you get very respectable return rates per year.

This post has been edited by contestchris: Jan 11 2017, 10:15 PM

Personally I choose eastspring small cap for 4 reasons:

1) Sales Charge :

Public Mutual charge SC about 5% to 5.5% per investment, which may not seem much if you invest once, but to me who advocate to DCA every month by income, that will be costly to me

For Eastspring, I can buy from FSM from 0.5% to 2% SC per investment, lower cost to DCA for me

2) Performance :

From the performance data and chart that I posted previously along with the website you can check, EI small cap beat Public small cap by some margin

3) Flexibility :

Staying invested in an isolated fund house platform, I find it hard to switch around and compare between peers if the market doesnt turn well or you want to diversify into something different

In FSM, I can compare and switch between fund houses if I forsee another fund house having a better fund that what I own now, invest EI small cap in FSM allows me to switch to different fund houses in the future within the platform

4) Documents :

PM hardly publish FFS publicly to update their investors about the fund update, whereas other fund house they provide FFS on their website by monthly, easier to study and compare within FSM

That is just my opinion, I haven't have the knowledge to read in depth in the fundamentals of what they invest, what difference do they make and their future potential prospect, so I just provide my basic reasoning

As far as I know, small cap in Malaysia is still an inefficient market, therefore investors or fund manager can try to compete for information, insight and careful selection to outperform the market.

Though it is less risky compare to sector specific like property funds, it is still riskier than large cap funds, so it is advisable not to put what you cant afford to lose into this segment

Unless you are lucky or very rich to have a very good agent or financial planner that will update you promptly and advise you accordingly, chances that you will need to self study and understand your investment to prevent being cheated and misguided by own sentiment and peer influence

I have been through that, and still learning

Just wish to spread this awareness in some self study on your own investment

Yeah, I know and ready for the long term investment but I don't want auto deduction from my bank. Can I just manually transfer but using m2u/cimbclick/ etc etc? If auto deduction I cannot stop it when got emergency cases, if manually I can manage to add funds for 6 months straight or hold 6 months for emergency cases.