lol. yup master/sifu wong talked out VCA previously.

i following just using agak agak method to see which one top up more. HAHA.

+_+.. the calculation... Terlantar kat hospital.

Hmm... GTF fell to 0.8315 on 4 Dec...

Should I be glad that I topped up on 4 Dec for 1 account or kicking myself for not doing it for the other 2 account?

This is never ending is it

before the sifu say anything.... yayaya... no point trying to catch the lowest

Terlantar kat hospital? Who?

Depends on your risk tolerance, time horizon and investment goals.
FSM portfolio:
https://www.fundsupermart.com.my/main/inves...ntportfolio.tpl?

Diversified portfolio by Schwab:
http://www.schwab.com/public/schwab/invest...hwab_portfolios

I create a plan based on similar concept for my clients. Then I monitor, review and do portfolio balancing for my clients.

I usually talk abt it in FSM; stay a little while longer in FSM thread and you may get the flavour of it. Helps if you are financially trained.

Xuzen

Thanks for the links....
read this Disclaimer about Diversification in the link...and is still wondering how does "Going for diversified portfolio can Earn maximum returns with minimized risk".


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Thanks sifu

So I did look at the correlation between the funds I have, funny enough ponzi 2.0 has high correlation with even asian and malaysia bond funds

I supposed that's why boss is not into bonds

Asia equities are freefalling again... so tempting

What is Asset Allocation?:
http://boostcompanies.com/asset-allocation/

yes,...asset allocation will reduce risks...but "Earn Maximum Returns" with it? how?

Maximum return with minimum risk, i.e., The Holy Grail of Investing. Trying to steal a free lunch from capital market.

Here is how. I'll use real life example.

Take two fund;

i) RHB cash management fund at 3.7% p.a. with a standard deviation aka as volatility aka risk is 1% (Anything less than 1% can consider almost risk free liao for retail investors)

ii) CIMB - Global Titan Fund aka Titan at 21.00% p.a. with stan-dev of 8.29%

NB: I got these figures from their respective Fund Fact Sheet hence I am not using make belief values.

The rate of return is % of Titan + % in RHB-CMF = 100% or 1.00, or W(titan) + W(cmf) = 1.00

The combined volatility of both Titan + CMF is not linear but given by the formula:

= Std-dev(portfolio, p) = [(W(titan)^2 x W(cmf)^2) + (2 x W(titan) x W(cmf) x Std-dev of titan x Std-dev of cmf x corr-coeff btw Titan-cmf)] ^ 0.5

Now look at the formula again: we know that the std-dev of cmf is very small (negligible) and cmf correlation coefficient to Titan is zero.

The formula then simplified to Std-Dev, p = [W(titan) x std-dev of titan]

the risk to reward ratio of of Titan alone = 21 / 8.29 = 2.53

If you take a portfolio of half titan + half cmf; the return is 0.5 x ( 3.7 + 21 ) = 12.35% p.a

The std-dev is 0.5 x 8.29 = 4.145

Hence the portfolio risk to reward ratio now becomes = 12.35 / 4.145 = 2.98

This means that by sacrificing the return, our portfolio become more stable i.e, from 2.53 to 2.98.

This is a very simplified way of explaining modern portfolio theory. If real life, you will have more than two funds and their corr-coeff is not zero, you will need to use algorithm programming to do it.

Xuzen

Take home point: That is why when choosing a good portfolio, we want funds that have low std-dev or and their corr-coeff must be low.

Ha ha ha betul... kasi lu satu like!

Xuzen

NO diversification.....Returns 3 months, 1, 3, 5, 10 years
Disclaimer:..Past performance may not indicate possible future returns....


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boss xuzen can use morningstar to see std-dev & corr-coeff right?

looking at the chart...makes me recall "Pink's" mentioned about retained profits of ASx FP funds.
(looking at the average performance value of the chart and compare against ASx......ASx is just giving ave 6.5% pa. for the past many years.. )

Let me highlight what's in the article:

1. By dividing your assets between stocks and bonds, you can increase or decrease the risk you take.
2. In general, the more stocks you have in your portfolio the higher can be the return on investment
3. If you decide to take a lot of risk, it means that you expect high profits in return.
4. By creating a portfolio that runs on autopilot, investors can avoid spending much time on their investments.
5. Rebalance our asset allocation on a regular basis (quarter, semester, year). Indeed, our portfolio will change following the market.

Please have a look at various plan Returns(1970-2014):
http://www.schwab.com/public/schwab/invest...hwab_portfolios

Everyone want maximum returns, but investors should take into account about the risk of facing maximum losses as well and asset allocation helps in balancing the risk and reward.

thanks...i liked this phrase..."facing maximum losses as well"..

You're welcome. We need to be realistic in achieving our financial goals.

This post has been edited by sam@bpp: Dec 8 2015, 01:05 PM

therefore can i say...in conclusion...
asset allocation helps in balancing the risk and reward......there is no sure certainty that this asset allocation will earn maximum returns for the investors as there is also a possibility of facing maximum losses too?

I'm not sure how to place it in words in order not to create a misunderstanding here.

Here's a take from Forbes article, " They(Market) ARE ALWAYS uncertain and if anyone tells you otherwise he is either lying to you, lying to himself, and in reality it is probably both. You need diversification to protect your portfolio from market shocks, recessions and depressions."
http://www.forbes.com/sites/investor/2010/...llocation-work/

If investing in unit trust can make me lose money, why invest then? Back to basics. "If you keep your money in your back pocket instead of investing it, your money doesn't work for you and you will never have more money than what you save"
http://www.investopedia.com/ask/answers/153.asp

Tycoons on My Payroll. "What do I know? So, I invest in their companies!":
https://youtu.be/1g214QziAZs

Hi All. Good to see so many active fund investors here. But I'm not sure if its a good idea to be too active switching in and out too frequently. Here's an article by BlackRock, just to share some thoughts:

BlackRock: Weathering Uncertain Markets

I'm curious to know, you guys who invested through FSM, mostly did it with your own cash or through your EPF account 1?

I'm an Adviser with Kenanga. If any of you are interested to invest through your EPF OR Sign up for a PRS Account to claim your RM3,000 tax relief. Kindly PM me.

If you're located in Klang Valley, we are able to come to you and facilitate a hassle free application process with a better offer compared to FSM.

Sorry for the ad. Hope this can provide some value. Cheers!