(Disclaimer: There is not a recommendation on the examples being discussed in this particular thread(OR mentioned in any posts here) and I am (or anyone is) not responsible if any loss is suffered by any person due to this thread. As we all knew, Investments are with risks.)

-Information displayed might be obsoleted by the time you reading here. Hence, please keep yourself updated from time till time.

-I'm not any Public Mutual funds agent at all. Nor I got any employment relationship to Public Bank(and any banks globally). Some members who reading this thread might got an WRONG impression that I'm promoting Public Mutual funds. As a matter of fact, I'm an investor out of millions in the market. I responsible for what i saying here. Notwithstanding the aforesaid, I'm not guarantee myself to anyone here that, one day I could not be a Public Mutual fund agent in the future. Personally I invested quite a lot of funds. Since Public Mutual fund quite reliable, may be there is why me or anyone keep mentioning that. The fact is simple as that. Believe or not, is up to individuals here.

Guess, I would need to spend much time in this section. I do play some investment. Problem is I doing that by agent. Thus, still many stuffs I'm unaware of. Just listening to the agent/unit trust. Recently I got some $ invested in Public Savings Fund. Was quite a big amount. Therefore,... what is this actually. I'm still quite blur. However yesterday I receive a RM 180 cheque already. Is this fund good?

I was told by the agent. It's 40% for saving. 60% for investment only. I was given two choice that time. One is Public Savings Fund, the other is Public Islamic Dividend Fund. He said that Islamic Dividend Fund is much more safer than Saving. As the value only at 0.2585(buy) 0.2752(sell). While Public Savings Fund is 0.6715(sell) and 0.7151(buy). I invested at about 0.68(if not mistaken)

Anyone got funds investment?! Please share your opinions...


Tomorrow would get back here again. Thanks for viewing.


edited:
Layman's notes:
I like to make my own notes while reading. In this way, it's more efficient than just reading it. Of course, I'm just a beginner.

-The 3.75% charges make me hold the bond as long as possible. Thus, once and before any fund or bond to buy. Think carefully first. Once invest, then must wait for a long time for it to recover.

-Investment is better than fixed term deposits because of the factor of inflation. Nonetheless, as we knew, investments itself got Market risks, Particular Stock Risk, Liquidity Risk, Interest Rate Risk, credit Risk, Manager's risk, Loan financing risk, Risk of non-Compliance, Risk of Non-Compliance with Syariah Requirements, Currency risk and country risk.
Never list down, i also dun know got so many risks...

-Some people who working might need to buy a car, or a house. Everyone needs that. But these stuffs not cheap. That is why Fund and bond exist for people to plan saving in a period of time, say 3 or 5 years with HIGH interest rate yet lower risked. In a way, it indeed much better than the ordinary Fixed term deposit in our bank. Bond, Fund investment method could be 2 types, one can invest in one big amount and wait for 3 or 5 years to get high interest(this normally are just extra money). Another one is by investing monthly, it's actually a type of saving. For us to fulfill our dream.

-For the first time I heard that mutual fund/unit trust is more risk than market shares. If and when anyone listen or read this stuff. Be more careful to those people who said above. Perhaps they never buy any shares and do funding yet.

-Experiences hunt,... please refer to
Post# 65 by vincecyc
Post# 107 by stmu
Most posts by khoong25
Post# 705, 712, 713, 721 by rexis
Post# 962 by low yat 82
Post# 963 by Geminist

-Some words to keep in mind when me playing with fire(shares? Fund? Forex?)
*Risk no more than you can afford to lose, and also risk enough so that a win is meaningful. If there is no such amount, don't play. by Ed Seykota

-Basically, when you investing in Funds or so called Mutual Funds. The first day launching is the best day for hunting. As normally there will be 1% of free bonus units to be offered or some sort of other offers. Thus, please pay attention to the newspaper. or talk to your bank friends closely. It's where and how to put you at a more beneficial stage. Early birds always got something to eat.

-
edifgrto: "I just make phone call to the Fund agent, being told that, as for the charging is only one time for purchasing only. While reinvesting, there is no charges at all. I'm a bit puzzled on this, what to do now is, to wait for the Fund Statement arrived. Currently I do got one fund having this case..."

-Indeed, why me so interested in these Mutual fund also known as Unit Trust(You might ask this?). Because share market is for someone much more clever than me. I made a huge lost that enough to be a lesson for me to stick with what suitable for myself(Simple as that). Just let those soldiers go to the battle field. Me more interested in lower risk, lower profits only... if any...

-Reading people make money from Share market is so easy, but people playing share market seems no one never make any lost before. My first investment made my RM 16,000.00 went down to drain. Nothing gain back,... not even one cent!

-For general information of market, economic of Malaysia
http://www.pwc.com/pdf/my/eng/publications/mamy.pdf
http://siteresources.worldbank.org/INTEAPH...sia-March06.pdf
Post #1175 by whtrader in Investment thread regarding Forex scams

-Some related websites that I might need to dig out information. Indeed, somehow... case like we went KFC for fried Chicken but we seldom(or never) visited KFC website perhaps. Therefore, same case here. Does not mean I always do reading from the sites. Then, I(or anyone) would surely make money. Just for reference, perhaps...(more to be added...) Some mutual agents inside the spoiler. Since it keeps growing. I decided to put them in Spoiler, for better viewing.

-Added some Fund Pricing attachments, collected from bank websites for pricing references. I'm not so sure if this fine?! If it's not permitted, I would take it out. Please let me know if it's not appropriate.

-dreamer101: What people did not tell you is in stock trading, if you do not do margin and stock option, you only lose the money that you invested in. In Forex, because of leverage and you must do levarage to make real money in forex, you can lose up to 20 times the money you put in.
Post# 1227 in Investment thread.

-louislim2: before you invest,make sure you can save your money like coins,that is the hardest part,and the most important part!!do you believe i can buy a motor cycle by cash just only i save my coins??i save until full of a big long bottle.when i count is around 6000.omg...i save for 4years,everyday throw in all my coins that if have.that it,this is the started point.you want to invest,just invest your attitude!!
Post# 1340 in Investment thread.

-luqmanz: It depends on how much return you expect to get. If your are hoping to get 25-30% ... that's almost impossible. ...
A good performing mutual fund can give return up to 15-18%.
Post# 1419 in Investment thread.

-pidah: when the Composite Index going higher, the Fund Manager will switch the Equity fund to Bond fund/Money Market Fund (Fixed Deposit) where as here you will gain more RM. But when the KLCI going down, the FM will switch back the fund frm Bond Fund to Equity Fund. (here u gain more units). As i mention before, source of U.Trust - Rise of Unit Price (Capital appreciation).
Post# 1432 in Investment thread.
edifgrto: I think I seriously would have to call my agent to ask about this switching stuff.

-pidah: and also you must remember that there are 3 type of source of return from UT which are:

1. The rise in unit price (We call it capital appreciation)
2. The annual dividend/distribution/bonus declared
3. The unit split declared.
Post# 1423 in Investment thread.

-Post# 1457 by Drian was something about Fund. However, he has not read pidah's post in 1423(which was in his previous page). Hence, his calculation becoming not accurate. To thoroughly get the calculation... you just need to throw RM 1000(probably) since the first year. Then, you would know how much income generated over the period. Drian did his work without invested real money in. And the most important thing is, not all funds are good. As luqmanz stated, not all funds are bad either. Else, there is no risk. Money would just fall from the sky. And, I won't create this thread here.

-To check the latest fund prices. It's to go to the each fund manager website to check. Alternatively, we can use The Star or OSK188. Which they allowing the public to check freely. Though me got the account with OSK188. But it's quite convenient for me to know the price without logging in. The advantages of OSK188, perhaps it allowing me to put all my invested funds in my favorite. Please note the price dated.

-For whom might interested in funding, getting high profit yield like 25% per month is impossible. However, by picking the right ones, the ranges for return on investment(ROI) for 4 weeks(1 month) are,

For selected best equity funds, higher risk
ROI, 1.13% to 3.29%

For selected best Mixed Asset funds, moderated risk
ROI, 0.55% to 3.88%

For selected best bond funds, lower risk
ROI, 1.31% to 3.50%

-Thanks to Oriental Daily News that giving me this set of information of Capital Guaranteed Funds performance as at year 2006. I have attached it for members that might interested in full capital protection fund type. Please pay attention to their average yield in 1 year. At least 6.27% annually is higher than our saving in banks.

-27th Feb 2007 is an interesting day. As when the CI dropped over 50pts what gonna happen to the funds I invested?! I better note this down for my reference here.


-to be continued later,...

Source: Note ideas from prospectus, and also some of my own opinions.

Some off-topic stuff in the SPOILER


This post has been edited by edifgrto: Apr 29 2007, 08:36 PM


Attached thumbnail(s)

Public Saving is categorised under Equity Income. It is a leader in this category. You can track its performance compared with others at this website http://www.btimes.com.my/mdata_html
Look under Lipper Fund Table

As an investor, you will get yearly performance report on the fund you invested from PBMutual. Ask your agent to explain to you how to interpret the contents if you are not familiar with it.

This post has been edited by cuebiz: Nov 16 2006, 10:32 AM

I currently invested in 2 public mutual funds.
PDSF - Medium risk
PGSF - High risk

Not much movement in PGSF these days. haih

Every month I put some money into them using standing order. Just look at them as long term saving

Gonna get a bond fund from them later. Just incase equity market turn bad so I could shift the money away.

*edit: spelling error. ha ha ha

This post has been edited by yushin: Nov 17 2006, 10:19 AM

Thanks for the link. Now loading the pages. Take quite some time... when it's in PDF stuff?! i think my pc got some problem. Would try again later.

Yeah,... was shown a booklet. Saying that Public got its outstanding performance in the past few years. Though, i myself not so sure what is going there. Initial, the money is a Hong Leung Fixed Deposit. But I took it out to Public. As the interest rate of funding is much more higher. About 12% for 3 years right? In the booklet,... other Mutual Funds hit on average at 13% or 14% for 5 years. Looks pretty good if this is correct.

edited:
Page downloaded and printed. Good information, now studying it(and the website as well)... Must do some homework...


PDSF is... Public Dividend Select Fund (now sell is 0.2893).
PGSP perhaps a typo.... ?!
Should it be PGSF - Public Global Select Fund?! Or is it a new Fund?!

Yeah,... treat it as a saving plan is good too. Much better than those Fixed Deposit, eh?

This post has been edited by edifgrto: Nov 16 2006, 05:58 PM

edifgrto, regarding the PB investment, do i need to go to the office to start an account? or can i just fill up a form and mail it to them?

PB Mutual always got people inside shopping center. Just approach one of them.
You can also call their office, they will assign someone to meet you too, I think.

Now the agent just arrived. I need to listen to her first... Got so many questions to ask her.

cheers,



I dun really like those in the shopping center. But true that, the bank would arrange agent to come to our place.

Yup... or just go to any Public Mutual branch and ask them, they will assign an agent for you.

I'm investing in Great Eastern Life Dana Restu & Growth Fund. Its insurance - investment linked so i get insurance protection and unit trust investment at the same time.

I also have the GE stuff. Don't you think it's pretty slow?

yeah......... its kinda underperforming when compared to the others

dats y i'm talking to prudential now. Might consider getting another policy that makes my money work harder & earn higher.

Hi all, I noticed this Predential Commodity Plus Strucured Fund closed(no selling and buying one). Was told that it's something like called 100% capital Protection Fund. Means, they use the money as a some purpose(dun know what they did actually?) But comfirming make money one. Anyway, since it's like such. Low risk, gain less.

What do you guys think about this type of fund?

edited:

Other examples are like
-Hwang Capital Guaranteed Fund I 1.1564(about-valued)
-Hwang Capital Guaranteed Fund II 1.0489(about-valued)
-Hwang Capital Guaranteed Fund III 1.0537(about-valued)


This post has been edited by edifgrto: Nov 17 2006, 02:57 PM

yes my friend, I heard of that as well.

Its something like 'capital guarantee' fund or something. At the end of the fund, you are sort of guaranteed the amount u purchased even if there's a shortfall of funds.

I didnt pay much attention to it because back then I very kering. The musim kemarau just sets in so no spare cash to buy.

Investments 101...

The Higher The Risk... The Higher The Returns...

If you find anything that works opposite to this ppls inform me...

Whole world luking for this...

Please also be careful of the Fine Prints..

"Past Performance is NOT an indicator of FUTURE PERFORMANCE"..

Agents always sell on PAST... doesn't mean past it does well means that FUTURE it will...

Know what ur getting into...

My 2 cents...

For info

Thank you for bring up this piece of information. I nearly missed it.

I make it a habbit of requesting the Agent to show me the portfolio of top 20 or 30 stocks which a unit trust is buying into.

I've come across agents who are reluctant to do so, so I simply walked away.

Remember, it is your money you are investing so you have the right to vouch & audit which counters the unit trust is holding. There's once I've come across a fund which buys into counters like Ftec, Autoair, Iris etc ........ I lost interest immediately coz the counter are speculative ones.

On the contraty, an agent showed me (HL unit trust) their unit trust hold companies like Maybank, Nestle, MISC, IJM etc ...... I felt more comfortable and confident of the unit trust.

My advice is, request for the top 20 / 30 stocks which the fund buys because its the right of the investor to see the info.

Those capital guarantee fund usually start at initial of RM5000.

Since the interest rate would be stable for the time being.

Bond funds is a good alternative to FD for those who wants stability but higher than FD returns.

PruBond & HDBS SBF don't have service charge for buying & selling.

This piece of info is compulsory in their interim report, annual final report & quarterly newsletter.

I thought it should be the other way round? buy bond fund when the equities market is going downwards n vise-versa?

yeah but normally i dont trust those too much coz they can simply buy good stocks just b4 the closing report to make it look good.

Normally if you go to their investment manager or unit manager, he definitely have access to the most up to date investment portfolio (even if its only top 10)

Yo Ppl Ppl ....so wat portfolio investment fund is the most hot in town nowadays??....or any unit trust fund or capital guaranteed fund that is just started and performing quite stabil??

Info info dude ...seeing u all debate in here n like this make me quite interested...
I heard from my part of town that the portfolio investment offered by banks are slightly more better than the others...comment comment??...

thanks..will get back to this post...so interested

Yeah i agree with you, some agents always sell on Past; even me. But how could you tell that certain fund really perform and will give higher returns in the future without looking back on its past records and its performance?

The Past Performance just a reference on how well the funds goes thru the market conditions at that particular time. Eventho we cannot take Past Performance as an indicator of Future Performance; as a unit trust consultant we are professionally trained on how to minimize all the risks thru diversification of your portfolio/investment and do some proper switching method.

With this past records performance, its also an advantage to investors to choose where should they put their money to invest in and expand their wealth.


my 2 cents,
pidah

bro, why dont u ask your unit trust consultant or agent to switch all your equity funds to bond fund. Currently the composite index is very high lorh.. better park your investment in bond fund for awhile until the CI going down abit. When the CI down, the price of bond will increase. It quite risky to put ur money in equity for these moment.

This post has been edited by pidah: Nov 22 2006, 01:27 AM

I'm not sure about the percentage you are giving.

When you say 12% for 3 years, isn't it better to put in FD? FD gives 4% per annum, that's 12% for 3 years. It's the same, so why put in Mutual Fund?

When they said want to increase fund size, is it good or bad news? How it will affect the current fund holder?

nowadays alot of unit trust customer convert into capital guaranteed investment.

most of them from rural are changing dramatically into those capital guaranteed stuff.

I always heard they say 'unit trust cannot be trusted 1 ~'

Some information link about Public Mutual fund performance and Total Returns
http://www.publicmutual.com.my/application...erformance.aspx

When they said, they want to increase fund size actually its a good news, Normally that fund potentially can give higher returns to the investors and at the same time can attract more new investors to invest. As the fund size increase, it also can minimized the assets iquidity risks involved.

This post has been edited by pidah: Nov 22 2006, 01:15 AM

dont just listen without do any research or smthing... if unit trust cannot be trusted 1, why unit trust is approved by the government and regulate by the Securities Commision (SC) & Federation of Malaysian Unit Trust Managers (FMUTM)?

This post has been edited by pidah: Nov 22 2006, 07:32 AM

capital guaranteed funds are strong challengers of unit trust.

Capital guaranteed funds are unit trusts.

I know. I'm just referring to the new breed of such funds.

Sorry for the inaccurate statement.

Edit, you are one rich man to be investing in Trust Fund and Equity Market... Normally for me, trust fund is something I will put my EPF funds in. No point keeping them in EPF and getting 4.5% or so from it. So, I will park it in Trust Fund.

Putting money in trust fund depends on your Risk profile. Under bull run conditions I am sure the Index and Equity funds will fly with the CI, so if the Agent tells you monthly savings, I have only this to say, I wont do that as you need to switch funds in order to maximize returns. There is no such thing as park it for 5 years and you get xx% returns.

I was under that mindset but 1993/4 changed them all. See 1992 was the year of the Super Bull Run, and all fund agents were happily sharing 5 year fund growth in access of 100%. Mind you, I feel for those flers who park in their funds hoping to hedge against market downturn. There are many of them still caught in 1993/4 funds that just managed to break even 12-13 years after.

Hence, you need to switch funds according to the season. Bond funds low returns but stable. Mix funds, its like staying near the equator. I normally stay away from mix funds. For me its either Bond or Equity depending on season. It has been good hunting over the last 30 months.. I hope it continues but with 1992/3 in mind... the good times wont last forever so make hay while the sun shines..

my 1st investment on fund = 5% profit after just 5 months. the profit will roll bigger and bigger as the unit price increase + next year dividen.

Sorry mate, was busy doing some calculation last 2 days ago. That is just a rough figure... and if I said, unit trust/mutual fund for sure making money. and like sky high margin. I might be in troubles later.

Let's see one example here, for studying purposes only. While data collected are real time. And it's really that price at that moment. You could check from Share Website for genuinity... if you interested.

PB ASIA EQUITY FUND as at 22th Nov 2006
Initial Unit Price as at 5th July 2006 0.2500 RM
Amount invested 12,000.00 RM
Free bonus units 480.00 Units
No.of Units held i.e (Amount/Initial Unit Price)+Free units, 48,480.00 Units in total.

Current unit selling price 0.2811 RM
Current Total value 13,627.73 RM
Value increased as at now 1,627.73 RM

As you can see above... it yield at about 13.56% from July 2006 to Nov 2006, in lesser than 6 month time. Personally, I like Unit Trust much more Shares... Lesser headaches. If mate the person above... will you sell it?! but I think it's better to keep loh. A long term investment... keep it for 1 or 2 years.


edited: typos

This post has been edited by edifgrto: Nov 22 2006, 03:49 PM

Depending ah... Edit.. Under current market conditions... you can get 15% - 20% in 2 trading days.... while you earn a puny 0.8% on Unit Trust... over 2 days as well...

Agree 100%. I also got some shares. But not as easy as Mutual Funds. About 3pm today, I just bought 10000 units of one of them. Dropping now,


edited: mistake.

This post has been edited by edifgrto: Nov 22 2006, 06:06 PM

whoa... 10,000... rich man! I went in intra day 5000 shares oso legs shaking like uncontrollably.. kekekeke..

Edit, mutual funds have its pitfalls too... as a matter of greed, I lost out on the last cycle of switch... so I endured 4%-5% of downturn only for it to be recovered after 3 mths or so.. phew... but happy to report as at today I am making on average 16% annualized return p.a over the last 2 years. If this goes on for the next 10 years... I think my EPF funds will pale in comparison with the funds I have in mutual fund..

maybe it's 0.2 per unit only.

This post has been edited by ky_khor: Nov 22 2006, 06:18 PM

Some additional info - current fund returns within 6 months alrdy covered the 6.5% service charged and the investment starting to generate profits. But then why ppl still complaining about high s/charge imposed whereas they earns lot more than that.

Better keep the investment at least 3 years, cuz sometimes the fund cannot really perform within that 1-2 yrs time.
Just a reminder - not all unit trust funds could give u that higher returns and some can give u loses, so as an advice; you must know where should you put your money with cuz in U.Trust, its all about investment and risks.

pidah

but you dun always get 15-20% consistently wo

Recently, equity mutual fund local or especially global one all should perform quite well due to recent surge in worldwide stock market, should be at leat double digit gain, if not consider quite poor already. But you can't expect every year the stock market will perform like this for consecutively non-stop.

If the world economy is not well managed or unforseen event happens then might enter into recession then stock market will plunge also. Bare in mind, as previous forumer said, there is no such thing of park your fund into it for 3 or 5 years then expect xx% return from it -> wrong mindset in investing in mutual fund or stock market. Market/company condition can change drastically from time to time as well as its fund. Just like previously, year 2000, everyone said technology stock is the future, then everyone rush into tech company, but dotcom bubble burst afterwards which still not recovered until now.

The return rate might xxx% after few years, might also mean -xx% (negative, losing) after few years, so there is no certainty, don't be fooled by previous track record said that xx% return since past track record does mean or guarantee future return rate. But past track record has its usage to show how well the manager is managing the fund.

I think must have some bank industry people in the forum.


Public and Prudential performing quite well. But, keep in mind that, Public leads majority. You can start do some researches from there. I think it's quite logical to say that, banks got more advantages over this issue.


Good news, one of my fund units got increased in this coming December. It's time to buy(for other investors), but not recommended to sell(for current owner, as unit price would dropped). That is why the fund increased by time goes...

Correct me if I'm wrong...


hehehe, you just heard what the clients said. but if I dun trust them. Then, why would I bother the funds then? Anyway, I knew I gonna be careful myself too. As if me dun understand. I would ask him/her whenever if necessary. Decision is mutually in the owner's hand. Unit trust giving their more professional services and advices.



That's right! Not much money indeed.
Once I saw one of them, just 1 unit 52 RM. Buy 1 in 1 day, is enough man. XD


So nice to have this EPF Members' Investment Scheme!
Yeah, I did read from newspaper before too. Public Funds performing quite well. 15 and 16% margin on average. Just let it rolls and accumulating.



Thank you so much for your valuable advice here. Appreciated.


That is why some people got lost too. I mainly would play safe. Too risky or not familiar ones, I dare not touch at all.


Unpredicted outcomes, plus some excitements like dun know when it drops or raise. Sometime making people in Share market so nervous. I just played a little bit. Not big enough to push me into corner. No worries...

This post has been edited by edifgrto: Nov 22 2006, 08:14 PM

TRue.. but I was drawing to the comparison of mutual funds where if switching is done correctly you may get 15% or so per annum max.. but in the equity market itself, you may get 15% in 1 or maybe 2 working days.... so is the risk factor. That is why back to my first post, it is always depending on your risk profile.

Fund size increase merely means, they have sold out existing units and because there are demand for the fund, they need to apply to increase its size hence a bigger pot to invest. Good or bad, it depends on which share the fund managers buy into.... this can be seen in their prospectus. Fund with a lot of dead stocks... AVOID at all cost...

For equities funds, how we can know who will decide which stock to buy and what stock they have bought? I know all the funds provide annual report and interim report, but how frequent they will trade the stock? Are them change the portfolio once when publish interim report? Or they are changing their portfolio everyday?

Reputable funds do not switch that easily.. you can even obtain their previous prospectus to check for yourselves. Fund performance over the last 2 years would be a good indicator. Moreover those fund managers hunt for jobs based on their portfolio of funds managed in the past. They will not want to kill their career. At the end of the day, it depends on your risk profile. Small cap shares? Index linked shares? Equity? Bond? Mixed? Balanced? Income? All gives different band of returns. Of course the high risks ones you may run the risk of loss. This matter however was conveniently forgotten by most agents when they present their available funds to you.

Is the Fund Manager decide which stock to buy? Or there is a committee in the Fund House to decide which stock and how much to buy?

Hi mate, I dun think so. The investor the one that decide which to buy based on what were suggested/recommended by the Fund Manager. They are funds, Bonds, Balanced, Umbrella categories in this issue. Not really that the share as you mentioned. Basically we are not discussing shares, but Unit Trust/Mutual Funds.

About how much to buy,... I think the minimum allowed always affordable by public. Thus, how much to buy is really depends on how much you got. Not necessary 1 fixed amount. Any figures like 1234.56 RM, or 5643.21 RM. Then, the number of units bought by you can be calculated.

About shares, today my agent advised me not to sell anything yet. So, I just chose to listen to what he suggested. Noted, I won't blame him if it's a wrong decision. Perhaps we could talk about shares over the Stock Market in Malaysia thread(or that everything investment thread, got 78 pages). I has yet really joining there. Was just busy reading first...

This post has been edited by edifgrto: Nov 23 2006, 01:57 PM

edifgrto,

I think you misunderstand what I'm saying. I'm talking about equities funds here, not stock. I wish to know how equities fund manager decide to buy which stocks for the funds. Is it himself alone deciding on that, or there is a committee deciding. The amount of stock I mentioned here, is not the amount we buy the unit. I mean is it the fund manager decide how much of a particular stock being bought for the fund. I'm talking about the operation of mutual funds.

Is it? sorry if me misunderstood. So, Funding is stock too?! Me a very newbie to this stuff too.



edited: initially you said,... talking about equities funds, not stock. but then,... you said how equities fund manager decide to buy which stocks for the funds. I'm confused now. >_<

This post has been edited by edifgrto: Nov 23 2006, 04:53 PM

There are a lot of mutual funds here, such as equities funds, bond funds, balanced funds, income funds, capital guaranteed funds, and so forth.

Mutual Funds is an investment mode for those small investors who wish to gain more return from the investment but do not know how to play share. So, mutual funds will collect money from public, then assign a fund manager to invest for you. So, the fund manager will use the money to invest in stock market, bonds or other fixed income securities according to the type of funds and the agreed portfolio. For equities funds, fund manager will invest most of the funds in KLSE.

Here, I wish to know how the funds choose and buy stocks in KLSE. Is the decision made by fund manager alone? Or there is a committee decide on it?


edifgrto,

After the explanation, are you clear about what I'm talking? Mutual Funds is an investment mode that we can use to buy share indirectly. If we do not know about share, better we invest in mutual funds. How mutual funds make money and pay you? They will invest the money in KLSE.... There are differences between mutual funds and stocks. I'm talking about how mutual funds buy stock but not we buy stock directly.

This post has been edited by leekk8: Nov 23 2006, 05:02 PM

Oh... hohoho... like that. Thank you so much for the explanation. Normally I dun care much one. I just care if the funds got increased not?

The funds increase or not also depends on how the funds buy and sell stocks.
Another thing is, if you know that the fund manager is good, we may refer to the annual report, to check which stocks he is buying, so that you also can buy those stock in KLSE...

Well, my thought is very simple only. Just let the professionals monitoring our funds is much better than me go into the battle field. There are quite a few categories me not so sure yet. How is this Balanced type all about? I can guess something about equity, Money Market, Bond funds doing. But Balanced funds... ? Mate got any ideas?!

edited:
I think I found your answer already. As to those Funds, you could check the Funds Prospectus. Inside got explanation on everything you asked. Like the Organisation Structure of the Investment Department for the particular fund. yeah,... a team of professionals, as I seeing here. Practically, I have no idea. Let me give you one example, like got Investment committee, CEO, Deputy CEO, GM-Investment, Deputy GM, then under Deputy GM got 2 groups. One Fixed Income, another one is Equities.

Under Fixed Income got 1 Assistant GM, 1 Senior Portfolio Manager, 1 Portfolio Manager, 1 Deputy manager, 4 executives and 1 Senior Assistant.

Under Equities got 1 Senior Porfolio Manager, 4 portfolio managers, 1 manager, 1 assistant manager, 3 senior executives and 10 Executives.

Arr,... actually documentation AND implementation might not be same. And if mate making phone call to those bank people. They would tell the same thing too. As to give you more security insurance, i think.

How much they would buy stock?! Private and confidential to them?!

This post has been edited by edifgrto: Nov 23 2006, 05:35 PM

sorry, newbie here, 15% here u mean gross return? or nett return(deducted the service charge) ??

Hi there, im new here. Wanna ask wat is the difference between this thread and the investment thread?

Another thing to ask, for UT/MF, the lowest dividen per year is how much? The highest?

we cannot give exact return like 15% perannum, normally we take average of 10% return per yr. but with Public Mutual we got funds which can give you more than 12% peryr.


PUBLIC MUTUAL FUND PERFORMANCE FROM 28 May, 2003 To 13 October, 2006 (NET PROFIT)
FUND 1 - PUBLIC ITTIKAL FUND (65.80%)
FUND 2 - PUBLIC EQUITY FUND (62.35%)
FUND 3 - PUBLIC SMALL CAP FUND (58.15%)
FUND 4 - PUBLIC ISLAMIC EQUITY FUND (52.32%)
FUND 5 - PUBLIC GROWTH FUND (51.65%)

I wont put my life to say that you can get 15% return pa. Lets say x% pa. It is the capital growth of your unit in terms of price.. in UT terms its always measured at NAV which is your selling price.

One can only achieve 15%-20% if you invest in the right fund and perform switches at the right time.

Unit trust funds are not for short term. Putting in and taking out can cost you up to 10% of cost. So its a matter of medium to long term investment with switching at the opportune time I believe you can see your growth oustrips FD rates and EPF rates.

Pidah,

I know u are a UT agent. I think you should put in more effort to study of Focus Select Fund. I think that fund has got great potential. PEF this year is a bit of a ho-hum. I am planning a switch already, but it will be to a bond fund first to cushion the downturn in Q2.

Its the fund committee, but today I guess the UT market is maturing and we do not have that many rogue fund managers around to screw around with our cash unlike way back in the 80s when UT was new and funds were invested in risky counters. Pick up any prospectus today, you could see that these flers invest in blue chip counters. Probably they are suckered in to one or two MESDAQ counters which are suffering losses beyond imagination.

You are right. UT is quite mature nowadays as is govern by Securities Commission. My only wish is that the front loading fees be lower than the average 6.5% that they are charging right now.

Oh yeah... takes a friggin long time to recover that 6.5% for the initial year.

Thanks for your info.

About balanced funds, the portfolio depends on the fund. You can get the portfolio allocation in the fund prospectus. Normally, balanced funds invest 70% in equities when they feel that equities market is good, 30% in bonds and fixed income securities. When they feel that the equities market is not good, then change to 70% in bonds and fixed income securities and 30% in equities. This type of funds are called balanced funds.

~5ive~,
Investment thread is the old thread in Job/Career subforum last time. Now we move to new subforum, can discuss in more specific topics. This thread is purely discussing about UT/MF.
About the dividend, it depends on fund manager. It's not mandatory for them to distribute dividend. You may get low dividend when fund performance is not good, and sure high dividend when performance is good...Sometime, you may not get any dividend for some funds...

10x for ur reply. I was juz curious. Btw, im new here and no idea wat is the difference between UT and MF..Any difference?

UT and MF maybe different in foreign countries, but in Malaysia, UT is same as MF.

but some said UT no nid management urself, but MF will need the management urself. So it mean still got the difference?

btw, i seemed like not understand. seems normaly the UT/MF dividen is higher than FD, y ppl will choose FD then? for shorter period?

UT or MT goes together with stock market (for those equity one) so if stock market go higher then it will generate handsome return to you but if stock market doing poorly then your UT or MT will lose money as well, there is no guarantee return rate.
For advertising or promote UT, they always based on past track record but it does not mean future will generate the same result (might be better or poorer).

Previous 2-3 years, stock market is on the way up and recovered from low during 2002 which Sars virus has plunged the market, so base point is low, that's why you see quite good return rate 10-20%. But if you compared back to about 9-10 years time when market booming before financial crisis, it will not surprise me if a fund just breakeven or perform as same as FD rate, it depends how to make comparison and you base point. I am not saying UT is not a good investment tool but invest in UT is not as same as FD, it carries its risk.

Btw, it is better investment to those not familiar with stock market and want to participate in it since it is much better to invest in UT rather buy those chapalang penny stock or 'goreng' stock/warrant which has no fundamental at all.

Seems like a lot of people don't understand how UT works.

Both are 100% the same. I asked the agent about this too. Funny answer I got. Because the public still not really aware of how to manage their $. When mentioned unit trust, they lack of confidence. As a matter of fact, it needs time to learn something. Then, it needs courage to put some $ into other people's hand. Again, economic status bad like such(referring to the past, still recovering now). Not many people interested in taking risks.

Edited:
For one of the new funds, i'm still making a lost... No choice, the transaction fee is there... Thus, pick the right one. Then only hentam dia kuat-kuat with patience...


Well, i think... I'm catching up a little bit day by day.

This post has been edited by edifgrto: Nov 24 2006, 05:18 PM

Okay, they are the same. Then method to choose the right to invest?

The methods?! That is why I'm here...

Got people said, read the background information. As you need to know who the boss behind?! Who would doing investment for you? RHB bank? Public bank? OCBC bank? Also, like some basic stuffs... If it's a new fund, what gonna do with it? How would it grow normally? It's 50.0001% correctly to say that for new fund, you hit it early. You could earn more.

Then, for existing funds. Normally the agent would advise people to do regular investments. Means, paying monthly but not one lump sum.

Fund categories also important. Like how the fund being categorised? Like one equity Fund for example...
20% for Kuala Lumpur Composite Index
20% for Tokyo Stock Price Index
20% for Korea Composite Stock Price Index
40% for MSCI Golden Dragon Index...

Then, Bond typs Funds are majority or all for Fixed term deposit. I'm not so sure about this already...


Stuffs like that. It's like little seashells on the beach. It's there, we are just picking it up.



PS: my comments is very conservative, huh? Just remembers, there are risks somewhere around...

This post has been edited by edifgrto: Nov 24 2006, 06:34 PM

Ok...then wat will u recommend?

whoa.. regular savings? absolute no no... unless it is into a Bond Fund hence earning FD rates without having to put up a lump sum. But if you are looking at equity funds, I trust you would really want to smell the whisp of the wind in KLSE before you plunk your money in long term. Timing is everything. Whether you will make 15% pa of 0% pa for the 1st year.

so wat u advise? How do we know the investment will be profitable. Mind to share out ur experience?

My recommendation is awesome!!! Please refer to the first paragraph of the first post in this thread. It's marked in red for easy attention. After you read it, then only click the spoiler below. Thanks.


cheers,







So,... in fact Equity Fund quite risky. And also more profitable... eh?

Today really something... man... closing at 1060...

According to that agent,... For existing Funds, doing that could minimize some risks. As the funds might vary. Slowly changing... I used that for long term investment. Thus, I dun mind if it drop for a while... slowly climbing up, it's more my style.

edited:
could it because of, if regular investments. Then, when investing that time. If the price is low. Then, the owner get more profits during the process?

This post has been edited by edifgrto: Nov 24 2006, 06:56 PM

That was really funny. Aha

so equity bond is moderate risk? generally, taking overall, the moderate risk, high risk and low risk UT is how many % dividen? Generally....

I mean your agent has his/her own ideas but I personally do not subscribe to those as I believe even if its for long term, I bet you this, today you try putting in money to unit trust and do a computation 5 years from today. I can almost bet my last dollar that you will not see even 10% pa. You will be lucky if you dont lose money at the end of 5 years. That is if you do not switch at the right time. If you put it monthly, it only means that you could put in $$$ when the price is at its peak. Just imagine under market conditions would you buy high and sell low? Can we see the agent's agenda here? Monthly investment = monthly income for them.. no matter how small, sikit sikit lama lama jadi bukit...

so u mean dont manage the UT ourself if dont know well the rules?
So lets say if im that one that look to a bank agent, how would i know he is good or bad?

btw, talking bout UT/MF, which bank is the best to invest mayb in terms of safety and also profit?

Sorry double post from other threads "Investment Fund both locally & international"

If all of you would like to know more about Unit Trust investment from scratch or meant for rookies, I would strongly recommend this book for everyone.

Author: Jeffrey Gan.
ISBN: 983-2431-88-3
Title: Know Your Unit Trust Investment.
Price: RM27.90.

Description: It's about UT investment locally. My advice is, try not to get any foreign books regarding UT because some of the rules might not applicable locally. This book tells you from A-Z especially the basics. It covers some calculation and examples on which deeply helps you to understand further. Jargons and their explanations. Most important of all, the hidden charges you will incur per transaction. Your rights.

What I like about this book is, they gave lots of example for some theories.

Hope it will englighten all of you.

Trust me on this, after reading this book, you will know what question to ask the UT agent, the pro & cons and etc. laugh.gif

Ops....again?
well, u too like the book or u r the write?
so hardworking promote the book.
10x to u too if u is purely want to share good thing with us. Can take up jokes, right?

Aiyeah I am not Jeffrey Gan ! Before this, I was very curious about UT, couldn't get any reliable nor easily understandable books. After reading this, I felt like turning into a new leaf . Thus, hoping to share this with everyone .

This post has been edited by countdown: Nov 24 2006, 09:31 PM

No... that one is really a CiFu. I'm still reading that thread now. Still not reaching the page he mentioned. I'm just in page 19 of total pages of 78...


Mate do have points here. Personally I'm still very new to Funds. I would take your advice seriously here. As some of my money is really there. Would consider switching when I got enough knowledge on when to switch, what to switch. In actual fact, I'm learning... Thank you very much.

Back to discussion, for some people. They won't get much money every month. And the way they invest also different. Your way for sure is quite dynamic, as you got experiences. However, some people are not. Their case might not be the same as yours. They treat it as a type of saving plan only with higher risk than Fixed term deposit. Thus, higher return in their book. True that, monthly investment got charges. But for some people, they are really doing it.

For your information,
One is 16.74% and another one is 14.78% now... Should I take out the money now? Both also in one year. What is your recommendation... ? mate...


edited: post #59 in this thread very attractive to me. Think I got to see some newspaper report or validated news. Then, would make decision on that...



cheers,



Thank you so much for the tip. Would try to see if can buy this book for reference.

This post has been edited by edifgrto: Nov 24 2006, 08:57 PM

respect respect
anyway, im noob here. will start revise....Haha.....
learn the concept of making money using money...

Do you mean that we should not invest in mutual funds every month? I think the agents always recommend us to do this, can't really remember the name, something like Cost Averaging something....It is initial investment some amount, then every month put in same amount of money to the funds.

Can anybody discuss about the pros and cons of this strategy.

i hope to know the right way to invest too....any1 mind to elaborate?

Unit trust its all about units.

Fluctuating Market

Average unit Cost for Unitholder A - RM6.40 (RM32000 / 5000)
Average unit Cost for Unitholder B - RM4.72 (RM30000 / 6350) ->DCA

pros
1. solve timing problem (when is the right time to invest - lumpsump investment)
2. earn more units at lower price
3. average cost of investment wil be lower in the long run, in order to maximise its benefits

cons
1.dollar cost averaging concept helps (but does not guarantee) an investor obtain favourable long-term investment results where the trend in unit prices is upwards. (unit price keep on increasing la never come down or does not fluctuate)

The rationale for investing in this way is that it is dificult, if not impossible, to invest at the bottom of the market, and most investors (particularly small investors) are likely to be better off investing on a regular basis throughout all stages of a market cycle rather than investing all their capital at one time.

By using the concept, it is said that investors can turn fluctuating prices to their advantage; especially if prices are moving down, they can purchase more units and reduce the average cost of their entire investment portfolio. By buying more units when prices are low and fewer when they are high, investors give themselves an advantage over other investors who try to time their investment decision - and get it wrong!

GIven that most investors in a UTS invest for the long term, the concept of dollar cost averaging works well - although there are no guarantees of investment performance! Its real value lies in a commitment to regular investment, irrespective fo market fluctuations. It avoids the need to decide to invest when the market appears to be too high, or to be hitting new lows. Investors buy more units at market lows when fear is greatest. As the market recovers, such purchases will prove timely.


my 1% of u.trust knowledge.... if you got more.. mind to share with us.

cheers

Actually, monthly contibution to buy UT is sometimes not worth but it depends on market situation.

Example,
Recently, market is on the way up for last 3 years, so UT price (equity) become higher and higher, so if you apply monthly contribution then your buying price become higher and your average cost become expensive. If market plunged then high probably your UT will suffer loses unless market keep on rising non-stop for years, is it possible? No one knows. If you believe it will, might as well throw whole lump sum together at the first place.

However, if the market is on bearish mode, become lower and lower each day, then monthly strategy might be good to bring down your average price since no one can guess correctly when is the lowest point.

Don't blindly believe the aganets sometimes, monthly contribution mean that monthly steady income for them only. Sometimes I feel those agents (but not all) are irresponsinble and what they are more concern is their commission rather than assist customer in investing.

Buying equity UT is almost as same as share since you are indirectly buying shares also, so the most important is timing. If buying at a too high price when stock market is bubbling then your UT might struggle to give your a good return, worst still might as well losing money.
But one doesn't need to buy the lowest point and sell at highest point since it is almost impossible to do so. Just when it is low then it might be a good opportunity to buy and when market is unreasonably high then it is time to sell. If after you sell then it goes higher, (often happen) let it be, at least it has generated you handsome return rate already. When market is expensive, it can't stay long, it will correct itself, after all valuation of stock market can't run away its most fundamental factor.

Bare in mind, buying equity UT is same as buying share! Just indirectly, there is no guanrantee return!

This post has been edited by cherroy: Nov 26 2006, 10:32 AM