Hi ... i'm newbie and would like to start unit trust investment ... looking for PM agent ... pls contact me, Bernard @ 012-6508234 or email me @ bernardlcn@yhoo.com, prefer chinese speaking and can meet up around Kepong area.

Thanks

This post has been edited by bernardlcn: Feb 19 2008, 11:27 AM

I had a question tat i couldn't think of the answer. "How to lose ur money in unit trust?"

Since when we start to invest in unit trust, all the money value will be shift into unit. Even the market up or down, it won't affect our money because in the account is only in unit. It only will affect us when we repurchase the unit out because the unit will turn into money value.

So if like this, then we only took out the money when the price go up n not during the time go down lor.. Then... how came ppl can lose money in unit trust? I still couldn't get it! We the one controlling the time of repurchase and not the market rite? So... whether the market up o down oso... Its none of our investor business oso. Am I rite?

Technically yes.....but when you need money, do you redeem your units?
Another complicated one which I simplified it:
Units or not, the money is invested in equities and bonds.....so if so unlucky even after all the diversification all the method still loose money as market is really bad, so where is the money to cash out the unit if they put it at high price? Thus they need to quote the unit's price at lower price and so happens you need money like I mentioned.....or the market never rebounded. There...you loose money.

Btw, you loose money once you signed up...that's the service charge.

No, you are not right because the re-purchased price (NAV value) is not controllable by fund managers or fund houses, it is dictated of the value of the fund portfolio aka their underlying stocks or bonds value in the market. If market goes down and its portfolio stocks goes down then the fund NAV goes down. This is not a pyramid or money game bare in mind. You can split out market with fund as fund invest money in the market.

You don't redeem your unit, yes, you won't realise your loss, just paper loss, not realised, but a loss still a loss, just you opt for long term and don't care about short term paper loss. It is more like Ostrich behaviour, hiding your head in the ground, don't want to see the truth.
Don't get me wrong on this, short term loss or any loss in investment is unavoidable as one never will buy the lowest, but if one choose the right investment, over long run, mostly make money one.

If invest in wrong time aka at market peak time like Nasdaq during 2000, when Nasdaq composite is 5,000+, if one invest in Nasdaq related fund then after 8 years time, your fund become 50% of the origin invested value only, although in future may be it will go beyond 5,000 again and your fund state to make a profit but who's know when, another 5 years, 10 years. By then those opt for FD one rather than invest in UT already see their money double while one invests in Nasdaq composite related fund only see their money breakeven. In this case, even after 10 years you make profit from it after Nasdaq manage to climb back to make some gain but your gain is significant lesser than if put in FD then it is already considered a 'loss' or more accurate word 'opportunities loss'.

So a little bit getting right on timing will help a lot, don't need to buy at the lowest or sell at highest, just avoiding to but when market seems to high or expensive will be good enough already. Different funds have different strategy, some do perform quite well, some also did poorly as well. Can't say all, it depends on nature of the fund as well as the fund house and managers managing it.

This post has been edited by cherroy: Feb 19 2008, 04:34 PM

hi im new here
how if i got 60k wan to invest in unit trust
but i planning to invest only for bout 1 and half year
do anyone have recommend fund?
i know its long term investment but how if i wan invest in 1.5year?

UGPM

You already lost around 8% during the first year when investing in UT. You pay for the service charge.

Just look at Lipper fund table in The Edge Weekly if you want to know which fund is performing well.

6.5% personally i recommended PCIF :-) time to buy now and make profit of it

That is really a high risk though, but you could try.
I wouldn't recommend anyone to invest if they can't part the money for at least 5 years.

What is the 6.5%?
Where did you get this number from?

PM agents fighting....

Every agent have their own opinion & perception towards investment, so it is important for investor to judge it on their own...which they think is good for them.

Yes, if you didnt repurchase, you only get paper loss or paper gain. It is not the real lose or real gain. That's why we're always recommended to invest in Unit Trust in long term, so that we can wait for the market in bull run, then only we switch it or sell it. Anyway, not everyone can hold the investment for long term. Some people might need the money for urgent purpose, or some people plan to invest for 2-3years then use the money for house downpayment. Bear in mind, when invest in anything, understand about ourself, how much risk we can take. There is no bad investment, important is we must choose a suitable investment for ourselves.


naix,

Since you only can invest for 1.5 year, I think it's better you put it in FD. If you really don't want FD, bond fund is the only choice in unit trust investment. Don't try to go for high risk equity funds, as it might lock your money for 3-5 years, or you will lose money if sell it when market is low.

Found my PM agent, thanks to those who contacted me

Hmm... I get it. Unit Trust is not a place for short gain. Its for long run. To make it safe, we still need to have FD for our alternative income need. In case, the market down n we need money, we still can redeem the FD without any lose.. ThanQ very much

may i know how much of the percentage of return for the bond fund?
how bout balanced fund?will it suitable for my case?

Tune Money Capital to offer unit trust products

KUALA LUMPUR: Tune Money Capital Sdn Bhd, a wholly owned subsidiary of Tune Money Sdn Bhd, plans to launch a few unit trust products by June this year, subject to Securities Commision (SC) approval.

Tune Money Sdn Bhd chief executive officer Tengku Zafrul Aziz, who is also a director of Tune Money Capital, said that the latter received its fund management licence from SC on Feb 6.

"The industry totalled RM169bil last year alone, of which private funds accounted for RM72bil.

"In addition, some RM71bil lay idle in savings accounts last year and the question is how to mobilise these funds. We think there is great potential for a new player with an innovative approach," he told a press conference yesterday.

Tune Money Capital, which boasts of a non-traditional business model, would be the first company to solely sell its unit trust products online via its own financial portal.

"We will not be using agents, thus reducing our upfront fees. Market upfront costs are about 3% to 5%. We intend to charge below this rate for our products," Tengku Zafrul said, adding that the company had spent RM10mil to develop the portal.

He declined, however, to give details on the products until it obtains SC approval.

The company, which has a paid-up capital of RM10.5mil, plans to manage some of the funds itself while outsourcing some to local fund managers.

"We would also consider investing the funds overseas, depending on its size. Furthermore, we are only allowed to invest 50% of the assets under management overseas as per the regulations," he added.

Tengku Zafrul said the target market for these products was those earning between RM3,000 and RM4,000 monthly, which are underserved financially.

"There are many people out there who want to invest but does not have the means under the present system," he said.

Tune Money, which has launched three insurance products to date, plans to roll out hospital, surgical and motor insurance products by June.

Its first life insurance product would be launched by the third quarter.

URL: http://biz.thestar.com.my/news/story.asp?f...98&sec=business

Bond fund generally in average can give about 5% p.a.

In balanced fund, there is still a 50-60% being exposed to equity market...so the risk is still there. When market tumbles, Balanced fund will have significant drop as well, but maybe less than Equity fund.

Generally in the 1st 6months - 1 year time is for you to recoup back your service charge. If market is good, the duration for breakeven is shorter.

For your case, if your are very confirmed to redeem your investment in 1.5 years...Bond Fund seems to be more suitable. But it will be better to save most of ur money in FD and consider taking a bit out to invest in bond fund.
You can also opt to put small amount in Balanced Fund, a portion into bond fund & another portion in FD.

So, here, you are taking a risk that the Bond/Balanced Fund performance will give you better return in 1.5 years compared to money u put in FD...but if you segregate it between UT & FD, it is less risky lor.

Generally, it is true when market is on the way up but not always true.

Just like, if enter wrong timing, like some properties fund last year or some China related funds, they are making loss of more tha 20-30% since last year end. Not to say recoup the serive charge, it is challenging for the fund to just breakeven in near term.
So it is much depends on market condition, can't use last few year performance (market bull run) to judge how future will be or as the standard comparison. Market won't have bull run every year one, in between there are difficulty period or bearish time, just over the long run (decades long), market mostly is always up one, but not a must. Typically example would be Nikkei 225 after about 15-20 years since its last boom, it has not recovered until now.

Just my 2 cents

are there any dividen or bonus when we invest in fund like public mutual ?

Invest in UT, you don't look for it, you look for the daily and long term increment in the fund NAV.
Any distribution/dividend are giving out are deducting from funds NAV, which is as same as unit split.