growth fund equities

you should buy it consistently (top up once every year) and not invest per lump sum

5.5% sales charge and 1.8% annual fee

If put 3 years would be 5.5+1.8+1.8+1.8 = 10.9% fee

which means it is more than 1.8% annual fee due to compounding effect on daily basis

Net return minus off sales charge to be exact.

Annual fee is already factored inside. means it has annual fee. statement is there. no matter how someone twist it, one still cannot deny the fact that the management fee is 1.8% per annum.

to make it more clearly, if annual management fee is 1.8%, it also means that they charge their customer 0.00493% daily

say, if you have invested RM10k (take off sales charge of 5.5% will leave you RM9.45K. everyday they will minus off 46 sen (assuming the NAV stays constant).

so if the UT consultant say, our fund can perform an average of 8% per annum. you will have to expect the investment return is 10% in order to offset the management cost to give you 8% return per annum

Any cat that can catch rats is a good rat
If you spend rm5 on charges but get back rm50 in return is also considered as good investment
Is just that if you want to buy Conservative fund or reits fund than better avoid fund that charges high management fee

The benchmark is beating the inflation rate and maintaining future spending and purchasing power

If you're thinking of maximising your returns of investment, the only way is to invest yourself in equities market

For me, unit trust is the platform I go into incase my judgement is wrong in equities market.
Investing, not day trading. However it's a very fine line between investing and long term trading.
By investing in equities alone, you already take off the management fee.

Yes. We are greedy. We want to max our return
This is solely my perspective
But at the same time we need to diversify our risk. So we allow some money to parked in these fund, especially the moment we start having kids and plan for their education that's where fixed income and managed portfolio kicks in. Most of the fund does promise in the brochure of protecting your savings for your next generations etc etc
If you want to get rich, unit trust is not the way to go bro

Back to the statement on a good cat and a good managed fund
Fund A. Charge you a cumulative 2 percent per annum for managed and sales fees but you get 6 percent returns nett
Fund B. Charge you a cumulative 1.6 percent per annum but you get 6.2 percent returns nett
The difference is there and I would say... People will always compare woah fund A so ripped off. But if your purpose is to protect your savings... Can you say fund A is a lousy fund?


This post has been edited by squarepilot: Apr 17 2021, 11:53 AM

Added my comments on my previous post

Fund is not about maximising returns
It's a tools for risk mitigation for the savvy investor
And a lazy man method for those who don't care about growing their money outside of their working field.

Wealth is never meant to be build on mutual fund at the first place
But if fund failed to even protect our capital, yes it deserved to be bashed. The management salary should be even be forfeited to show that hard work must be done to protect the interest of the unit holder

I meant if want to invest in Conservative fund. Yes. In history and record shows that most Conservative fund barely beat the market and with public bank charging so high sales fees. It's like buy an expensive cat that doesn't know how to kill a rat

Generally. Those who opt for public mutual still prefer investment that still provide human touch. Their agent is willing to drive to your house or nearby cafe to review your investment with them. Of cause these comes with a higher fee.
People here who like to get best returns and know how to use Internet to manage their money via fund will probably buy through FSM

If you are comfortable on your returns, you wouldn't have kira so much on their high sales charge. Just saying

I buy also because of friends doing Public mutual. But I pick those riskier fund. Pay so high management fees of cause must go for high risk one 😀

Gold etf by hwang expense ratio is around 0.6 percent if include all management and custody fees

Public mutual e-emas is more suitable for those to invest lil by lil Eg rm100 per month

You don't pay rm10 for brokage to buy rm 100 worth of gold right?

yes. but the society does function like this. if you are rich and can put in more money your fees are cheap, if you have only a few hundred t invest then the fees is expensive

hellogold is not yet established and hence people will favor public mutual for it's reputation

you can check the annual fund report from Public mutual online

or just message your unit trust consultant to send you the pdf file