what is the benchmark for all these funds?

these figures are meaningless without comparing them to the appropiate benchmark

CAGR or IRR much touted by investors only form part of the equation in our assessment of investment return,the other metric sorely missing in most discussion in this board is risk/volatility-
CAGR is a smoothed return over a defined period which is a poor reflection of the actual dispersion of return in that period

in addition i would just ignore ROI which is a general metric not suitable for measuring the return of mutual fund

Anal level rising

Haha

Now only I know

I think is wrong Anal...causing some shits to be stuck.
did not see clearly the actual reason why the data are presented?.
must have assumed to be for comparing apple to apple.
must have assumed that the data shown was showing which fruits was "best/worst" based from the IRR and ROI
not realising the data is JUST for showing the movement of IRR and ROI each of the fruits that one had in the basket and the overall IRR and ROI of the whole basket of fruits one is holding over a period of time in the data shown.
each of the fruits could be have been purchased not at the same time, or lump sum purchased or purchased at DCA over a period of time, or some fruits may be held longer than others or time of buying and etc, can have an impact on the IRR and ROI ....and yes...risk/volatility numbers too
my anal and assumption can be wrong too....

Suadrif is funny

Yes, I had a small gambling portfolio previously and I "invested" in AmPrecious. It was a stomach churning ride. I made some money and lost some money. So for the time being I am staying out.

You mean the profit taking I did yesterday is not real??? I thought I made a profit of RM14,515.71 transferring the profits from my equity funds into the bond funds.

So all this time I have wasted my time investing in unit trusts since ROI doesn't matter? Sheesh...what a scam.

Benchmark is bullsh*t. Period.

U want your investments to generate returns for u.

U want your investments to generate returns that are ACCEPTABLE to u.

Who cares about benchmarks?

Comparing the figures adele123 posted vs a benchmark is meaningless because the point in posting them is to see how her funds performed from her initial investment amount.

We don't talk about it because risk/volatility is a measurement that we consider before we invest into a fund. Additionally, the risk/volatility measurement of a fund does not reflect the performance of our investment (i.e. the thing we're talking about most of the time), rather it reflects the potential future performance of the fund we're investing in.

The Compound Annual Growth Rate (CAGR) is never meant to measure dispersion/deviation.

It's not about "suitability". ROI, CAGR, and IRR are all general metrics that tell you the return of your investment in different ways.

This post has been edited by idyllrain: Oct 16 2015, 12:24 PM

Academician vs practitioners
Cicak vs labah labah

Just like some flers spouting this / that Act (section this, subsection that)
BUT does not share the impact + options/solutions
VS
practical
BUT your mileage may vary

i prefer the later's approach - "action-able", rather than lalaland ivory tower stuff

This post has been edited by wongmunkeong: Oct 16 2015, 11:34 AM

I benchmark my investment PORTFOLIO against
(1) FD
(2) EPF dividend rate
(3) Index i.e. FBMKLCI-EA

Why?

If I don't invest in UTs, I can
(1) put my money in FD,
(2) put in EPF, or
(3) invest in index fund and close eyes receive dividends

This is MY benchmark.

The funds' benchmark is meaningless to u, unless u could buy/invest in the benchmark yourself.

To give an example...

Let's say u invest in ABC Fund
ABC Fund invests in Malaysian stocks plus a bit of Asia ex Japan stocks
And that big-headed fund manager says his target is to"maximise unitholders' returns", and selects Berkshire Hathaway as its benchmark
Well, naturally, he would lose by 9 streets
YET he outperforms FBMKLCI and Kenanga Growth Fund

So, u praise him or pijak him?

This post has been edited by Pink Spider: Oct 16 2015, 12:36 PM

Let's go back to basics of investing, FV = PV x (1+ ROI)^(t)

ROI = rate of return
t = time

Chasing return by trading is inferior strategy compared to being invested all the time. Even a lower ROI of say 6% consistent return over time will beat a one off 200% ROI.

Look at the equation again... ROI is linearly related to the gains, but if you have a consistent moderate return but your time invested is long, the gain is exponential! That is why looking at the risk / volatility is very important also. It is not just an academic exercise.

Better still if you can calculate a portfolio that just sits optimally at an inflection point where the risk adjusted return ratio is most optimum = Awesome. Say for example you all may have known perhaps a certain powerful self programed macro algorithm available to some awesome dude who calls it..
..
..
..

Xuzen

You foresee KGF And Eastspring Small Cap will drop?
My KGF profit 13.2% and Small Cap 11.8%, if you foresee they will drop i want to sell also.
My highest profit now is 21.7% CIMB Asia Pac Dynamic, frens in here say can buy more.

CIMB Global Titans also they all recommended - i added 3k today.

Hi thanks for the explanation Xuzen. I was only trying to stir up sh*t with my earlier remark. Adding more fuel to the fire.

I am just a layman investor. As long as my profit and loss column is green and looks OK, I am happy. I don't really follow up about IRR, CAGR, etc. Of course if possible my profit should be higher than FD rate.

Hi Guy3288, I can't really foresee what will happen to KGF and Eastspring Small Cap in the future. Sometimes I practise constant dollar investment for KGF and EISC because they already form close to 18% of my total portfolio.

This investment strategy works well for those investors who are somewhat risk adverse. But you won't earn as much profit as Value Averaging or a buy-and-hold strategy in a rising market.

Read more at http://www.finweb.com/investing/constant-d...l#axzz3oi81j7Gl

Now you have 3 methods to choose from depending on your investment strategy, either DCA, Value Averaging or Constant Dollar Investment.

Happy Investing bro.

Note: I only intra switched the profits from my KGF and EISC funds into the Kenanga Bond Fund and Eastspring Bond Fund. But my principal sum remains invested in KGF and EISC.

This post has been edited by Vanguard 2015: Oct 16 2015, 03:12 PM

LOL noted.

But I am sharing this just as how I share to my client; trading will increase your ROI and may boost your ego. However, if you look it from mathematical point of view, no matter how strong your ROI is, it still lose out to time,t since time is an exponential function, whereas ROI is just a linear function. I hope reader here can see the awesomeness of time!

Hence, it is logical if one is to minimize risk by creating a minimally risky portfolio I,e., and stay the course, time will exponentially increase your Future Value. You don't have to scratch your head about thinking about buying or selling. This is a mathematical truth and is not based on sentiments nor emotion.

Xuzen

Thanks for sharing Xuzen. As they say, investing should be boring.

but yours is...exciting