Ponzi 2.0 holds 1/3 of total AUM in HK and China, so if Chinadolls perform, can also up up up.... I sacrifice awesomness in exchange for peace of mind, My bola kecut liao these days,,,,,

Xuzen

Wahai Labah-labah merah jambu,

AWESOME AVATAR! MOAR please!!?

Xuzen

Doing this is like locking the stable after the stallion has bolted!

That is why DCA and diversify is the long time WINNAR! It is boring, it is not sexy... but it works.

To be those mathematically inclined... Diversification has a measurement just like volatility aka risk has a measurement.

For risk aka volatility, the most widely accepted measurement is One Standard Deviation whereas the most widely accepted measurement for diversification is correlation coefficient, corr-coef.

Xuzen

My balls data are in... this mth sikit early wor...

Before I talk about Algozen™ recommendation, let me just say a few observation.

I) The risk-return of equities generally has gone done. Meaning, the equities are getting more risky. The days of easy buffet lunch is getting less. You want more gain, you need to take more risk. Simple as that....

II) Equities across different geographical zones are converging, the correlation-coefficients are increasing. This means that it is not easy to get good diversification.

Now, onwards to the recommendation:

Titanic is still floating, iceberg is nowhere in sight;
Titanic is still preferred, even though the Europeans are making headway,
Ponzi two is still game on, it is loved for its low volatility,
Don't ignore the small cap, she may surprise you yet, show her a little bit of love.
Titanic with Ponzi two with small dash of small cap is still the best diversified portfolio there is according to Algozen™...

Xuzen

This post has been edited by xuzen: Sep 22 2015, 01:03 PM

Money received from EPF will be in a separate account than the cash purchase.

Yang asalnya dari ia; kembalinya ke ia.

Xuzen

I know some of you are into bonds. But I found out something interesting as I was playing around with my Algozen™.

I used LibraAsnita Bond as a proxy for local bonds and I found that the correlation-coefficient is rather high with the equities. This means that it is not as diversified as we all thought it to be. The figures ranges from 0.5 and above.

Then I used RHB Asian Total Rtn as a proxy for Asia-Pac High Yield bond and again it is quite high correlation, up to 0.7 with Titanic and Ponzi 2.0.

Typical Bond yield is around 4 - 5% with standard deviation of +/- 1%. Money mkt is around 3.5 - 4% but its stan-dev is 0.1%. High yield bond may give you double digit ROI, but the risk you take is as high as a balanced fund... around 8 - 9% Standard Deviation.

My take home message is be cautious! Bond is not that diversify with equities anymore. Better to use money market as a volatility stabilizer compared to bond.

Xuzen

My point exactly... this so called bond does not behave like a typical bond. It has a risk rating that is compatible to that of a balanced fund with return lower than a balanced fund. Not optimum at all....

Better consider a balanced fund....

Xuzen

Like this difficult to comment:

List them down with percentages then able comment properly or else... it is k/tiam talk.

Xuzen

p/s My preferred diversify portfolio consist of Money Mkt (for almost risk free return), no bonds, CIMB Global Titans (Fund that feeds into Fortune 500 global large cap companies), Ponzi 2.0 (Fund that invest into Asia-Pac ex Jp dividend yielding stock) and Malaysia small cap (as the name suggest).

This post has been edited by xuzen: Sep 25 2015, 10:59 AM

Eastspring Islamic Income Fund initial investment RM 100k, additional top up RM 50k

On a serious note, RHB cash management 2 should be OK, difference with the above is 25 bps.

Eastspring is a wholesale money mkt fund, RHB is targeted at retail customers.

Xuzen

Aiyoh! It is money mkt fund we are talking about lar... it is not suppose to be exciting wan leh! Generally money mkt ROI is around 3.5 to 4.00% p.a. Also note that there aren't many choice of money mkt fund available under FSM platform.

Hop over to eunitrust by Phillip Mutual and you get more choices. But then again, those that give better return are mainly wholesale money mkt fund where the initial entry is min RM 100K, some need RM 250K (they are targeting corporate client) not retail investors like you or me. Those additional ROI are mainly around the region of extra 25bps to 50bps and that is because of the lower MER charged by these wholesale fund.

Hence choosing a money mkt fund is like trying to go Tesco and trying to choose the best butter... which is kinda silly coz all butter taste the same anyway.

Xuzen

tin kosong dare not enter here wan... tok kok only kena shot like nobody business here.

He will probably spout his nonsense at some easily impressed newbie somewhere else!

Xuzen

Both lebih kurang wan lar.....

I heard (rumour) FSM staff more seng-mook and more proactive and do stuff faster.... it is all rumours nia, no substantial evidence. Not sure is staff attitude or their system more faster?

Xuzen

I wrote the above on 22/9/2015. Today in starbiz (Mon, 28/9/2015), this article came out...Investing in Volatile Times by Haren Shah, Citi's CIO. Even the pro's are saying what I am saying.....

This post has been edited by xuzen: Sep 28 2015, 08:22 PM


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All I can say is that I am topping up on these three myself. It is your choice whether to follow or not.

Some background info:

When one is a follower of Markowitz Modern Portfolio Theory (MPT), there are a few parameters which the theory suggest to look at when buying a position in any risky asset. It does not teach one about expensive or cheap (that is another school of thought - namely the Fundamental Analysis School of Thought).

MPT always look at taking position in a risky asset based on how less risky it is compared to peer. It essentially teaches to take a position that gives the best return per unit of risk (i.e., the most optimum risk to reward position).

Let's say a fund is perceived to be expensive, but it has the least volatility. Another fund may be selling at bargain price, but its price fluctuate wildly. MPT will still advocate the "perceived" expensive fund. It favours stability.

Hope this helps explain the MPT rationale.

Xuzen

some buy because of dividend coming liao... like that labah-labah merah jambu feller!

Xuzeb

Buy UT A today at NAV RM 0.80 per unit for RM 1K. Total number of units (not share) bought = RM 1,000.00 / RM 0.80 = 1,250 units

If tomorrow UT A NAV drop to RM 0.60 per unit; the total value is RM 0.60 x 1,250.00 units = RM 750.00, i.e., you lost RM 250.00.

Xuzen