assuming one holds a funds for 2 years
ROI is 40% (for easy calculation)ROI 40/2 yrs thus IRR is 20%
if now the ROI is 20% thus the IRR is 10%
thus ROI drops 20%?

is my calculation and assumption corrects?

yes 2 different things.....just a "queried" view that a regional funds is more risky than a single country focused one eventhough the drops this time is mainly from this country?

dun pagi pagi test my matematik lar

yup....that was what i'm thinking abt...since greater china suffers the biggest lose
topup that...when it rebound...it would cover back the loss

Sorry-lah...not much people in the workforce can helps....
"Nearly three-quarters of the local workforce are without any tertiary education, ...."
http://www.thestar.com.my/News/Nation/2015...ithout-degrees/

just that be careful.....(now pouring cold water)....sorry.
the last time China funds corrected in 2007/2008...the wait for rebound was till 2014

not yet..still thinking
68% huh
FSM also recommending to go in

This post has been edited by MR_alien: Jul 11 2015, 10:50 AM

FSM View on the Recent Market Sell-Off in China

Currently, FSM do not see any significant changes on the fundamentals of the Chinese market.
The headwinds are most from excessive margin lending and expensive valuation on the A shares of small- and mid-cap companies, deteriorating market sentiment.
Current market situation suggests that H shares see better investment values, showing more attractiveness to mainland investors who are after lower volatility.
Despite the fact that H shares were always the first to be affected when A shares’ bubble bursted in the past, H shares tended to demonstrate better resilience than A shares in a down market. Unlike A shares, the H-share market is mainly composed of institutional investors who focus more on value, and hence it is less likely to experience the same “herd effect” driven by individual investors.
As of 3 July, the 2015 and 2016 estimated PE of CSI 300, representing the A-share market, dropped from 20.42X at the beginning of June to only 14.8X and 13.0X, which are in fact close to the fair value; whereas H shares estimated PE for 2015 and 2016 are now trading at 10.8X and 9.7X against the 12X fair PE, showing a significant discount. Investors can consider capturing such upside potential using the dollar cost averaging strategy to invest in high-quality H-share funds.

http://www.fundsupermart.com.hk/hk/main/re...articleNo=10016

the flow of noises never seems to ends....
China and Greece is almost over,...now this....
High valuations weigh on U.S. stocks ahead of earnings
As companies in the benchmark Standard & Poor's 500 begin to release lackluster second quarter results, rich valuations threaten to keep the U.S. stock market spinning in place.
http://www.reuters.com/article/2015/07/11/...N0PK27O20150711

This post has been edited by yklooi: Jul 11 2015, 11:16 AM


Attached image(s)

Mine dropped to -3.51% with Ponzi 2.0 as major factor. Tempted to topup but want to hold on with DCA/DVA.

#china #h-share #grexitdoesntmatter #europe #ratehikeinseptember #malaysianotdoingood #india?

Hmmmm yummy simple fifth grade soalan kira-kira:

Let's put some numbers for illustration.

Initial capital = RM 10,000.00

After two years, portfolio = 14,000.00 = ROI 40%.

IRR or CAGR =/= 20% = 18.32% p.a.

Lets say it drops 20%; 14,000 - 20% = RM 11,200.00

Then IRR =/= 10% = 5.83% p.a.

Now you owe me coffee....

Xuzen

This post has been edited by xuzen: Jul 11 2015, 04:06 PM

let's say....(from the 1st part your illustration).

Initial capital = RM 10,000.00

After two years, portfolio = 14,000.00 = ROI 40%.

IRR or CAGR =/= 20% = 18.32% p.a.

If the IRR dropped by half (18.32/2=9.16%), what is the % of ROI drops?

Kopi Tarik on the way....

if IRR = 9.16% p.a., then the corresponding end period value is RM 11,915.00

the drop is from RM 14,000 to RM 11,915 i.e., a 14.89% drop in simple arimethic calculation.

Hence if the IRR is halved from 18.32 to 9.16, then the corresponding ROI drop is 14.89% and is not 20%.

You need to appreciate that arimethic is a simple straight line calculation whereas IRR is compounded return and uses geometric calculation (exponential and logarithmic function)

....
Clear your porch...a big cup of coffee coming up

(for the blue one..... ) have to get another cup too...


Attached thumbnail(s)

China fear factor

Markets in the regions likely to suffer more because the largest economy in Asia is on a spiral downwards

GREECE spooks investors, but China terrifies us.

Just when sentiment is already dented as Greece’s future hangs in the balance, the world wakes up to yet another – and potentially bigger – risk due to China’s recent stock-market meltdown.

The concern is palpable, for in less than one month – between mid-June and early this week – China’s stock markets had lost about 32%, wiping out US$3.9 trillion (RM14.8 trillion) in value – that’s equivalent to the size of Germany’s entire economy, or about 17 times that of Malaysia.

Read more: http://www.thestar.com.my/Business/Busines...ctor/?style=biz

Talk of $3 trillion of lost wealth also ignores the fact that only about 40 percent of China’s stock market value can be freely bought and sold. The rest is held by controlling shareholders, which are mostly state entities. Shares account for just 9.4 percent of China’s household wealth, according to Credit Suisse: bank deposits and real estate are much more important.

What was lost in China’s stock market slide
http://blogs.reuters.com/breakingviews/201...k-market-slide/

Who went to today's event at Penang?

Any tips to share?

Yklooi tried to go but failed as in page 19, post 372

Why failed?

Any reason? Uncle got privileged membership!