in Unit Trust, Fund Manager will always b ready buyer. You sell they must buy.

But u hv to wait minimum 10 days to get back your money (at least this is PM policy). Mutual Gold, business 2 days only

redemption (by unitholders) = repurchase (by FM?) = sell (more laymen term/stocks term)

NO. 1
Usually, when you do switch all your units into a new fund is when the fund is not performing up to your expectation. Therefore, you switch to other funds that has more potential.

Full switching may oso be done (to bond/mmf) when the market is down to preserve your capital. and will switch back into equity once the market is more stable.

NO. 2
This kind of switching is what we call profit taking. Once your fund perform to a certain target that u set, then you switch out some of your units to lock-in your profit. (i.e. take out your capital and leave your profit in there)

NO. 3
Mayb by leaving some low-cost units in your fund, when you buy in the fund again, it can helps to lower your cost per units.
Average cost means your average NAV cost/unit (include service charges +/- switching fees). Anyhting above this value is your profit.

as usual, do always take into the account of RM25 switching fees that is imposed as this will be included into your unit cost.

Pro and Cons?? If you switch too many times, in the end, you incur more loss than profit. Switching do save you the service charges for reentering the market. It oso useful in doing your asset allocation.

I would say, determine why you want to switch and when to switch.
not performing? preserve capital? market drop? profit taking?

This post has been edited by kingkong81: Oct 19 2007, 03:47 PM

yep

Profit taking can mean 2 things
1st...u take out all
2nd...u take back your capital...left your profit there to grow some more. So if losses occurs, it is on ur profit, coz u ady take back your capital, so u wont feel the pain. If it grows higher...better, coz ur 'profit' are making more 'profit'.

Swicthing fees (PMutual) are based on number of transaction made, not based on your units. Everytime time you switch, RM25 transaction fees r needed. (there are few exceptions, pls look back a few pages where i hv posted the fees of switching)

(a)
ok...let say initially u bought your fund at RM0.25/unit. assume you put in RM10, 000
No. of units = Rm10k / 0.25 = 40000units

(b)
Your units price shoot up until RM0.30/unit....then market starts to go down, u manage to switch 35,000 units out at the price of RM0.30.

( c)
So, units left in account is 5000 units (with cost price of 25 cents each)

(d)
Price drop until 0.27...then u switch in to buy back. Let say u only switch in RM5000
no of units = Rm5000 / 0.27 = 18518.5 units

(e) Total units you have = 5000 units (previous) + 18518.5 units (new switch in) = 23,518.5 units

Total capital pumped in = (5000 units X RM0.25) + RM5000 = RM6250

Average cost per unit = RM6250 / 23, 518.5 units = RM 0.2657/units

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If u switched out all...then buy back in at 0.27...your cost price will be 0.27/units lor.
So, it does helps to average down cost/unit if your initial buy is at low price.

Keep in mind that this is just simple calculation, I did not includes service charges & switching fees into the calculation.

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If anyone have better and easier way to explain this please share with us

This post has been edited by kingkong81: Oct 19 2007, 07:40 PM

Have you heard of buy Low sell High??? The concept is almost the same, we try to buy at low price (accumulate more units at lower price), i.e. and try to lower our cost per unit as much as possible, so when the price go up, our profit margin will be high.

I would not say you are totally wrong in your calculation...it you are considering the total net worth of your cash + investment mayb you have a point there.

But, what we are looking at is not the money/net worth at that time only...we aim at gaining more in longer term

you see...in scenario 1, your average cost price is at 0.2657...Scenario 2, avg cost price is 0.27

then consider this scenario...after switching in back at 0.27, the market soar, and the price go up to RM0.35/unit

wat is the simple return for scenario 1 and 2?

Scenario 1 = [(0.35-0.2657)/0.2657 ] x 100%= 31.73%

Scenario 2 = [(0.35-0.27)/0.27 ] x 100%= 29.63%

Difference = 2.1%

so, u see the difference? so, scenario 1 will be more profitable than scenario 2

then again, these are juz examples, remember u hv to take into account of service charge & switching fees

You are learning fast

To me, leaving some low-priced (low-cost) units behind is more to lower my average cost during 2nd buy in...this is in order to maximize my return when the markets rebound. The risk is still there, if market continues to drop lower than my cost price, the units left behind are actually making losses now...so, it is still a bit risky.

So, both methods have its pro & cons...depends on which you prefer more...

There still lots of things to learn...i'm still learning everyday as well...

(P/S: Yep...Max Fact Ignis is the first PVC figurine that i bought...really a nice figurine. Adding Yamato Non-non to my collection soon... )

Under the current EPF requirement for Unit Trust Investment:

20% of the excess amount of RM50k in your Account 1,

i.e. if your Account 1 got 100K, amount u can take to invest is (100k-50k)X20% = RM10k

withdrawal can only be done every 3months

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The recent paper announcement oso make me blur ady...minimum 9k in Account 1????????

This post has been edited by kingkong81: Oct 24 2007, 02:40 PM

Well Unit Trust Fund for one is aim for medium to long-term investment. So mayb you should get to know wat is your goal and how much risk to take before hand.

To me, for really long...long term investment, where u wan to keep until old 1, high risk fund will b an option. For long-term capital growth...else, a moderate-risk, Income fund is oso a good one...which 1? then u hv to hv a look lor.

Thats interesting...now almost everyone can invest with their EPF money liao!

Limiting local funds really narrow down the option and make EPF money to invest in UT less attractive.

Hope EPF will relax the rule a bit

Yup...it makes the EPF investment look less attractive, with juz a handful of fund to choose from.

For PM....

PIX, PRSF, PIDF, PIBF, PSBF, PMMF, PIMMF

Nothing is 100% guaranteed.

If you are seeking something that can give you 30-50% return, the thing you can do, is to invest in a higher return investment instruments, be it Unit Trust, Shares, Property, etc.

You have to take the risk in order to gain the return. Even those capital-protection scheme/funds/investment have their risk. Imagine, your money is stuck there for 5 years and in the end, they tell you u r earning nothing. So this is the risk.

Putting your money in EPF or FD is safe, but its return is low, may not even able to offset the inflation.

So, investment is not about how much you want to get in profit. It is more to how much risk you can take in order to get the profit you wanted. If we know wat risk we are taking in wat type of investment, we are taking more to a calculated risk.

The choice is still yours.
Save in EPF with low returns but very low risk, or invest your money, take the risk, get the chance to earn more.
As long as you are comfortable with wat you do with your money

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Added on November 6, 2007, 12:51 amInformation with regards to 2 NEW PUBLIC MUTUAL funds,

1) Public Sector Select Fund (PSSF)

2) Public Islamic Sector Select Fund (PISSF)


Launching on 13 November 2007 with issue price/NAV is at RM0.25 per unit during offer period (13 Nov ~ 3rd Dec, 2007).
In addition, promotional service charge of 5.45% of NAV per unit during offer period!.
Limited fund size of only RM 100Million for each of both funds.
Eligible for EPF investment as well!

Fund objective:
To achieve long term capital growth over the medium to long term period by identifying & investing in market sectors with strong earnings growth prospects & attractive valuations.

Investment Policy
Equity Exposure: Generally range from 75% to 90% of its NAV
Will invest in maximum of 6 sectors while will maintain investment in a minimum of 3 sectors.


Investors' Profile
o Aggressive risk-reward temperament
o Medium to long-term investor
o Can withstand extended periods of market highs and lows in pursuit of capital growth

Distribution policy
o Incidental

This post has been edited by kingkong81: Nov 6 2007, 12:51 AM

Open for both Cash & EPF

This is only the 2nd time Public Mutual came out with a sectorial fund.

The 1st one is Public Regional Sector Fund (PRSEC) launched 1.5 yrs ago. It invest in regional market.

The 2 new ones (PISSF, PSSF) are oso sectorial fund, but it will be domestic fund (i.e. Malaysia market only) and bcoz of this, it is eligible for EPF investment. Basically this new funds mainly target at giving EPF investor some new choices after KWSP implement the new ruling on investment using EPF $$.
The difference between the two, one is conventional fund (PSSF), the other is Islamic fund (PISSF), but both have similar investment strategy.

Hope this helps

Latest news.

Both new funds PISSF & PSSF have been APRROVED BY EPF. Therefore, as Jordy said, for cash investment, the first of of launching is the day u can purchase...coz if response is overwhelming, subsequent day will only for EPF

No.1
You should be looking at Balanced Funds then. Balanced fund profile usually is 60% in Equity & 40% in fixed income securities. The fund manager, depends on market condition, can shift the investment in between the equity & fixed income securities part.

eg. PIABF, PFEBF


No.2
The price seems to be too high for me to go in. But i do believe that PCSF can still go more than RM0.30/unit. So, do u wan to take the risk?

Latest News Update from PUBLIC MUTUAL


PIBF Fund size increased from 2 billion units to 3 billion units

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Added on November 16, 2007, 3:33 pmClosure of Public Sector Select Fund and Public Islamic Sector Select Fund

Please be informed that Public Sector Select Fund (PSSF) and Public Islamic Sector Select Fund (PISSF) will be closed for all sales with effect from 16 November 2007.

This post has been edited by kingkong81: Nov 16 2007, 03:33 PM

The fund size for both funds are only 100 million each, very small only...it has been informed that this fund will sold out fast, and it did. And in actual fact, cash investment is only accepted on the 1st day, 2nd & 3rd day for EPF only.

HOT!!

For the time being, there is no news that the fund size will be increased.

It was informed to all agents...no public announcement being made yet...

So lets see what is PM next plan for this fund.

Fund closure on the 1st day offer has happened before...Focus Select Fund is one example. Sold on the morning of the 1st launching day....

This post has been edited by kingkong81: Nov 16 2007, 10:55 PM