Guys, need some opinion. 

I'm rearranging my investment. Currently my savings roughly consist of;

40 pc - equity fund
30 pc - asb
30 pc- cash

I'm thinking of;

40 pc - equity,40 pc - dividend/balance fund, 20 pc - asb. I'm maintaining asb because it much easier to take cash out in case if I need them.

Is this a good combination? 

may i know how how much is the ASB return? my return from Public Dividend select fund is around 25%-30% within 1 and half year.....

Hi dreamer101 uncle, can US or any oversea funds last for 10 to 20 years one?! I mean,... like their performance in 20 years time period?

As I know, Some Malaysia funds can have over 10 years if me not mistaken. But the encouraging time for people to keep the fund is only for 1 to 5 years. As for me, i would only do that for 1 to 3 years. 

3) Well, I have to disagree here. Dun you think it's too fast jumping into conclusion?! Given that one just said,

-my fund makes 20% to 30% in 1 1/2 years(a reality and real life experience. Full stop here)
Just an real life experience sharing.

-my fund would make 20% to 30% in 1 1/2 years(not real yet)
Perhaps a n00b, perhaps not...

Besides, take me as example. I never admitting myself not a n00b, irregardless if anyone calling me?! or I myself denying that I'm always a n00b. Being n00b always need to learn something new! 

Edited: for the example you gave. It's really making sense. Thank you very much for the sharing. I would keep that in mind. Pin it up... to memorise them...

If stock market went up 30%, the fund is doing 20%  -> This is bad
If the stock market went down 10%, the fund is doing -5% -> This is great.
The fund has to do better than the market.  Or else, we should just invest on an index fund.

Just want to ask, how to invest in Vanguard Wellington fund for us malaysian here?

That's the thing I want to mention here. Unit trust is different from share in terms of the price movement. Since unit trust is widely diversified, the price won't go up and down as much as share.

I understand this, but we can't do anything for this. Most of the listed companies in Msia is hold by the government. We're not able to invest oversea market, so still have to struggle in domestic market. The diversification here is in terms of Msia market.

UT is not safer than individual blue chip stock??? This is a good point that I should think about.

Dreamer, how about some UT that invest in foreign market? I mean global funds or far east funds, so forth. These funds have diversification?

Anybody also can open US stock account? Anyway, is US market really good compared to others?

I myself with all my "saving" in unit trust. Starting this practice since grad and after I get to know that the return from Unit trust is much higher than FD and safer if compare to stock market.

Yes, don't put all eggs in one basket, diversify... and Depend on how much risk that you can take.

But then we have so many fund management companies & if they are launching "almost similiar" fund.. how can we decide? Based on the proven track record they have? Or should we stick to the current funds that we invest regularly, instead of buying new fund?

Diversification not necessary unable to achieve with local market. Diversify can be in term of Bonds vs Equity ratio, or different categories of industries. Rules of diversify = not put everything in the same basket, m i right?

I see, thanks for the information. I'm still new in UT and investing either. What i'm trying to say in economic downturn, the diversification is work in UT assume government didn't make significant impact on KLSE. M i right?

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Dreamers: Personally, i think funds in SG is doing quite well. 1st. They're international trade market, the funds participate in international market and they have more experience in investing overseas compare to Malaysia's UT. M i right?

No. I understand that the fund itself is regulating by SC and trustee. What i'm trying to tell is the fund have a better/knowledgable person who managed it. Or in order word there's a professional team managing your money. So, in a normal circumstances, when the market is not doing well, the fund will allocate fund to shares with higher dividend payout (i think they'll have some sort of defensive strategy in equity fund to prevent too much losing out). Else what's the point of paying Mgmt fees to the fund who cannot manage for you? Like what dreamer said, if the fund is performing worst than KLCI, then why pay for it? I myself can be a fund manager to choose stock in KLCI. What a fund doing is actually minimizing the risk, and maximizing potential return to the unit trust holder.

Another point is that something you guyz seems never notice, the return you see 200%-300% is just something you can see for now. If you liquidate your investment, you get 300%. However, if the timing is incorrect, or you sold after the market crashes, there goes your 300% or sometimes even worst. This is call volatile. UT have better/smaller volatility compare to Share Market.

That's why choosing a good fund manager is very important in the first place. Everything there's a pros and cons, just make sure you benefit the pros most and minimize the cons as much as you could. Then you're happy with it.

Yup this is very true. However, the market is random. No ones know what price is low. You might say $1.00 of XYZ Bhd is worth to buy. But not for other investor. Different perception i think.

Other than those points i've posted, I do think UT manager they have the economic of scale, don't they? They deal directly with those securities company and they can buy large quantities of blue chip stock in a significant volume, therefore, they might get better return than ordinary investor?

Any comments?

Is that means actually funds got no benefits from the economic of scale they held?

Dreamer, I just studied about the Renong, UEM Case. But then I couldn't related much that to the diversify of unit trust. What I could think off is just this is policital risk which exist at any country, and Malaysia share market lack of liquidity. Would you mind to explain a little bit more?

Since there is no real diversification in local market, it's better for us to buy global funds...

How about bond funds?

Emmm... Who said no real diversification in local market?! Ain't that recent news said out of 50% of the local fund can be invested in oversea?!
Last time was only 30%, but now already 50%... 

global funds not really good in general. My personal preference, perhaps... ?!
Bond Funds can be good but low return, lower risk...

For me, I prefer combination of bond funds and equity funds in my portfolio. Bond funds advantage is its low service charge, and normally a bit higher return than FD. It's better than we put our money into FD.

Global funds not performing well? I think this depends...currently msia stock market is going up and up, so maybe the equity funds are performing well currently. Anyway, KLCI won't stay at 1300 forever, and no one knows how long it can stay at this level.

As I understand there're 2 types of global funds. As said by cherroy, normally global funds feed into some foreign funds. As I know, there are also funds that direct invest into foreign stock market. I think we can know this by reading its prospectus.

Dreamer, since bond is something like fixed return, why we need diversification within bonds?

Personally thinking that, local fund managers are still inexperience in foreign markets. It's not easy to invest in several foreign markets, as they need a lot of analysts to study and analyze the markets.

So far, I prefer global funds that invest on other foreign funds...until they're experience enough and have sufficient resources. Anyway, invest direct on Asia market like China, Korea...should performs quite well, as these markets are going up like crazy...

6) Local market I also can't understand well. Therefore, not really a good timing for me to go oversea yet. ^^

7) NO DIVERSIFICATION in LOCAL STOCK MARKET. hmm, i dun know in more details of this. Almost all BANKS people telling me funds can have DIVERSIFICATION. However, have or not to me is not important. What me really know is, the FUNDS in LOCAL STOCK MARKET is making a little money for me!  Public Mutual, OSK-UOB and Prudential funds perhaps my main interest. 

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.