Thanks for the information.....

hmmm, planning to invest 2k in public mutual tomorrow.

anyones got any tips as to which unit trusts i should invest in?

i was thinking of investing1k in Public China Select Fund and another 1k into Public Global Select Fund.

what do you guys think?



This post has been edited by satish87: Jul 1 2007, 07:51 PM

PCSF is a good choice in fact, but need to switch it to other funds when China, HK and Taiwan market is going down, as the market now are quite high.

PGSF performance is not very good so far...think twice before you invest in it.
Probably you can consider PFEDF.

PFEDF, PDSF also not bad. PCSF is good but it is an aggressive fund. If you think can make a go, then go ahead. 1k still a good starting amount.

PGSF is not a good fund to consider but in long term wise, it may reach the expectation or beyond that.

Are there any similar type of investments like FD whereby you don't have to do anything just to let it grow (based on interest rates)?

You mean, I could literally put money in it and wait for 20 years for it to grow, without me doing anything at all?

Bond yield is fixed but bond price isn't so you still can lose money in investing bond. Becareful about it. Investing in bond still need right timing to achieve good yield otherwise if getting bond yield of 5% then lose 2% in the capital depreciation due to decreasing bond price then doesn't seem so wise.

Just like previously week, a lot of gov bond price decreasing because of high interest rate expectation.

Generally the better time in investing in bond when interest rate is peak and forseeable future it will be lower down.

There are high-risk, low-risk, government backed and many fancy fancy bonds. Yes, it's possible to lose money with bonds when going after high risk bonds. Generally if your conservative bond fund strategy is going after shorter term bonds, the yield is almost guaranteed higher than FD and the variance would be much smaller as the risk exposed is less as well. If you have checked the record of the local islamic bonds, they are very safe (but not 100% safe) and provide a consistent return of higher than FD rate.

Oh gosh.. So many new terms..

<<the yield is almost guaranteed higher than FD and the variance would be much smaller as the risk exposed is less as well. >>

Yes, short term bond has lower interest rate. But, the key word here is "almost".

If you invest on your short term bond today and Bank Negara announces an interest rate hike tomorrow, you still lose money on the principal of your bond.

The key here is risk adjusted return. Do you get compensated enough in the term of return for taking this kind of risk??

If FD is 3.7% and the bond bond is 5%, is it worthwhile for you to take that kind of risk for 1.3% per year more?

You have to answer this kind of question for yourself.

We are at a historical low in term of interest rate. IMHO, interest rate will only goes up or stay at current level. So, the bond fund will not be doing well.

Dreamer

Agreed with dreamer. Nothing is guaranteed, an investment company never guarantee returns on their products.

Please take note that, there are risks associating with investing in FD as well. If you have placed your money in a 12-month 3.7% FD rate, and the bank revise the rate upward (say to 4%) a few months later, you will still be stuck with your 3.7% rate till maturity.

And the inflation risk is always there for investing in FD. Is the rate really enough to hedge the inflation rate ? For the year 2007 = Yes likely, but the coming years is not guaranteed as the fuel price is hiking !!!

Dremer and ejleemy, both of you stated some important points there. However, I wonder if I would really want to invest some money in anything now... what would you recommened in such volatile market?
IT should be equity fund, bond fund, growth stocks or simply keep the money in FD? the sum wont be great (a few Ks?)
Thank you!