Dividend fund is just a type of equity fund. Just they are more concentrate investing in high dividend yield stock. While normal equity fund may opt to invest into some high growth stock that might has low or no dividend yield.

Locally, typical dividend stock would be like BAT, Guiness etc while high growth stock would be like Airasia, Astro which has no dividend yield or little only but growth prospect is bright.

So in term of ROI, dividend fund might have a higher return?

Not necessary, if high growth stock perform well.

In bull market and high economy growth situation, high growth stock generally (not 100% though depends on company to company) do better than dividend stock. But when market poor time, dividend stock has much strong footing to withstand the downturn.

But based on historical data in long term, dividend stock did outperform high growth stock.

Normally high dividend companies are performing well and more stable. So, in long run, I believe high dividend yield share should give high return.

You guys are highlighting dividend shares while I'm more interested in dividend funds ... should the same concept applies?

In theory, yes...as dividend funds are investing into high dividend yield counters. However, if you are able to choose good high dividend yield share, it's better you invest in stock market directly, as the service charge of mutual funds are 5-7%, and diversification in mutual funds might decrease your returns.
Anyway, you can lower the risk by investing into mutual funds instead of stock.

Thank you, leekk8 but from you posted; there's no win-win solution.

David83,

He had given you a winning solution but you have choose to ignore it.

<<if you are able to choose good high dividend yield share, it's better you invest in stock market directly, >>

There are less than 5 counters worth investing in KLSE. So, why it is so hard?? You just need to find out what those 5 are.

Dreamer

David83,

If you know about share, sure better you find out which 5 stocks mentioned by dreamer and invest in stock directly.
Only for those who has no single idea about stock, if they want to invest in mutual funds, they can invest in dividend funds.

Realty Agents,
According to your signature, it states dealers wanted. How you can say dealers are sleeping partner?
How you can guarantee 25% return per month?

regards dividend fund and growth fund, generally around this 3 years the roi for growth fund is better than dividend fund.we can have a simple comparison by visit site like public mutual,see the difference of their dividend fund and growth fund perform.

please note above statement is only mean to growth vs dividend fund in unit trust.not about growth type share vs dividend high type share.

This post has been edited by athlon 11: May 14 2007, 11:24 PM

In a bull market, most probably growth fund is better than dividend fund. The market have been going up for this 3 years from 800++ to 1300++.

If the market is going down, I believe dividend fund give better return than growth fund. Every types of funds have their own characteristic and purpose. It's the hardest thing that we need to choose a right fund in a right time.

ING had launched its first Foreign Islamic Capital protected fund. Worth investing if you could put in your money there for 3 years. Projected returns is 19% per annum. Go to their website for details

But remember, it is 'projected' based on historical performance, not guaranteed, bare in mind. A lot of people still don't understand the 'projected' term. It is just based on equity performance last few year which sometimes personal think it is a bit misleading especially for those not familar and fully understand how mutual fund works.

For dividend fund and growth fund, in bull market 90% growth fund will outperform dividend fund. But when market has a hard time, dividend fund or dividend stock is more resilience. But in general, over decades, dividend stock performance is better than growth stock, if you total up all the stock or as ETF like.

For Public Mutual unitholders, take note on Determination of Prices



http://www.publicmutual.com.my/page.aspx?name=notify_prices

leekk8,

<<Realty Agents,
According to your signature, it states dealers wanted. How you can say dealers are sleeping partner?
How you can guarantee 25% return per month?>>

If it is TOO GOOD to be true, it is NOT TRUE. If someone can get 25% per month, why does he/she needs you?? He/she will borrow money from whoever and whatever to make more than enough for himself/herself. Why share?

Dreamer

If it is guaranteed return, I guess none of us will have a chance to invest as it will be snapped up as soon as it is available. Anyhow, capital guaranteed fund is good if you are in the low risk investor category. Besides, the entry fee is only 1.5% and it is managed by SocGen.

As many newbie think that mutual fund is something like FD, has fixed and guaranteed return. So, when we post message here, good for us to state that the return is not guaranteed, everything depends on the market.

yala..

there is no such things as guaranteed return in mutual fund/unit trust..
everything depends on the market condition..

saying it is guaranteed is an unethical practice..

even ASN/ASB has no guaranteed return..
they only has guarantee on the capital.. not guaranteed return...

hi to all sifus,

would like to ask is its not a good time to invest in equity fund.. globally equity is on the hifh side..

osk juz launched a new golden dragon fund..
which invest in china market and malaysia bond market.
overall i would like to know more abt invest on the market high side..thz

Even the market is high now, nobody know that when is the peak of the market. The market might go higher for another year.
As Golden Dragon fund can invest in 30-70% of china market, and 30-70% in local bond market, the fund manager might invest fully in china market when china stock market still going up, and invest fully in local bond market when china stock market going down.
For yourself, maybe you can invest in equity funds now, and switch your fund to bond funds when market is not good.