True .. I'm a PM agent myself. The dividens reinvested are not subjected to the 6.5% service fee. So, if one choose to get the divendens in cash and plan to reinvest it manually later ... I dunno waht to say because its obviously a bad idea. If you reinvest manually you are going to be charged 6.5%.

To complete the picture ... dividens are fully taxed at 28% even if you auto-reinvest. But this tax can be reclaimed. Just fill up the forms.

Hahaha... I was searching through the funds to see which entry in oct still making losses today... then that fund is better off DEAD.

Reinvested dividends taxed at 28%? Then there must be a statement to state the gross and nett? Would it not? and The tax we get to deduct it against total tax payable for the YOA rite? And this I need to ask, coz I never get any statement from my UT co to state that is so... grrrrr.... overpaid TAX!

Yaa you can claim the amount of tax that you overpaid. The UT company are required by gov to pay the tax for dividens that they pay. The UT company sent you the dividens slip in your mailbox right ? That's all you need to do the claims.

When they pay dividen or distribution, it has less the tax, right? Correct me if I'm wrong ...

For everybody info.

This is the PM weekly update




Attached File(s)
 Market_Wrap_12_01_2006__MG__.pdf ( 91.47k ) Number of downloads: 22

Hi,
Can you explain more on the tax issue? If the dividen is taxed at 28%, why we can claim back the tax? Any terms and conditions here?

Yes, the dividen you received is already taxed...
You can claim it back only if your current income tax rate is less than 28%.
Example if your income tax is 10% ... you can claim back 18%.

If my current income is not applied to tax, means I can claim back 28%, is it? Is this applied to all unit trust companies? We just need to fill in a form to claim it?

Yes. You can claim back all of them if you arent eligible for tax. This applies across unit trust industry in Malaysia.

Since the market is good now. Should I take out huge amount from my UT and wait til the market low then reinvest again?

I don't think this is a good idea.
I have money in medium and high risk funds.
With the market condition now they are doing very well but they might go down too someday.
My plan is to buy minimal unit of bond fund and do a transfer from equity to bond fund if the market goes down.
Any PMutual ppl here know the charges if i do a transfer?

I'm not an agent. Anyway, this is call switching. From equity switch to bond, I think is using NAV and not sure there is RM25 fee or not.

There's always a switching fee of RM25.

When you switch from a equity fund to bond fund, it's to capture profit when the market goes down. You just pay RM25 switching fee instead of losing more money due to downward trend of the market.

This post has been edited by David83: Dec 7 2006, 11:27 PM

equity to bond at NAV
bond to equity at NAV + RM25
equity to equity at NAV + RM25
bond to bond at NAV

taken from PM prospectus

If this is the case, means that if we switch from equity to bond, there is no RM25 switching fee applied. Any Public Mutual agent can clarify this?

Anyway, can anybody explain how to claim back the divided tax?

But if you switch from equity to bond, isnt that the NAV for bond fund will drop too if market is low? And there is switching charges. Might as well sell off huge amount then buy back when the market is low.

I have planed to set aside some small amount monthly to fund for my next holiday trip to HK. , when i do my plan,some idea come to my mind, why not I do investment to generate more $.

Any product i should look for? Short term and low risk. Bond fund?

For low risk investment, you can consider bond fund and dividen fund. Anyway, mutual fund is not short term investment, at least you need to aside an amount for that for 3-5 years. If you plan to fund for holiday trip, maybe you should consider FD or stocks if you know about it. Anyway, you can also try to invest in bond fund, since bond funds' service charge normally is 0.25%. For other funds which have 5-7% service charge, you will definitely not getting much return in first year...

Thx for sharing, I understand it might hard to generate much $ short term. Since i decided to allocate some small amount to save for a trip, I just think is there a way to generate more interest as compare to saving account. FD cant let me contribute monthly. Any bond fund to recommend?

My financial planner asked me to buy a short term fund from PM. There's only short term bond fun in PM (pure; not mixed with equity fund). Check that out ...