Hi,
Thanks for posting. I start to understand a little. Few questions.
1. What about dividends? Usually they are given out how many times a year?
2. The eg given above increases because of dividends in units or increase in value of the fund?
3. Say eg if the fund value increase by 20% but not the no of units, sell or just hold?
4. How often should one monitor the funds?
5. If it turn red, I should buy some more right?

Sorry for asking so many questions. Really noob

for intra switching, if i switched from Affin Hwang Select Asia Quantum fund to Affin Hwang Bond Fund, the sales charge will be 0% and i earned credit point too right?

Answer to:

Q1: F3CK dividend. I don't give a F3ck abt it!

Q2: Who cares? As long as increase who give a f3ck?

Q3: Hold. You sell when you need to use the money to purchase something.

Q4: Red or green, you rebalance to make it the same percentage holding.

Xuzen

1. So you rebalancing is based on value or no of units?
2. But how to rebalanced without selling anything?
(eg. Fund A and fund B 50:50 (rm10k each). After 6 months fund A increases become rm12000 while fund B only increase become rm10500. To rebalanced we need to sell some of fund A to rebalance fund B right?)

Yes. This is one of the ways I earned money in FSM. Minimize costs when we rebalance our portfolio. Later we can switch back for free into equity funds using the credit points.

But how to save if you are trying to rebalance say ponzi 2.0, titans, smallest and kgf?

Extremely possible. But you need a big capital layout. Around RM500k. All in high risk equity funds. The RM15k profit a month is not guaranteed and will fluctuate every month. Some months you may suffer a loss.

Is it worth the risk? Depends on the individual.

FSM, agent, bank - they are all INTERMEDIARIES, i.e. agents, i.e. salesmen

Whether u buy Fund ABC thru FSM, agent or bank, the SAME Fund Manager is taking care of your investment.

To put it in a simplistic view:
Investor pass money to agent, tell the agent he want to invest in Fund ABC, Fund XYZ, Fund 003 etc
Agent pass money to Fund Manager of Fund ABC, Fund XYZ, Fund 003 etc
Fund ABC, Fund XYZ, Fund 003 etc invests the money in stocks, bonds or park in cash as they see fit

IF u have a good agent, he will monitor your investment account/portfolio, alert u of any major changes, major economic news that might affect your portfolio etc. Take note of the BIG "if"...

In exchange for that, u will paying more sales charge i.e. commission compared to if u DIY thru platforms like FSM, eUT or CIMB Clicks

I also started out investing in UT thru bank...

But as I started to learn more, I found that I don't really need the "advice" of the bank officer...I basically know more than her.

That is when I moved to FSM...

In fact, FSM has a very good customer service that can help u on transaction issues and a very helpful Client Investment Specialists that can offer u investment advice...and they are free and available at a click/phone call/e-mail away.

Different types of UT funds got different risk profile...

If u invest in the "normal" funds that most of us here invest in, the swing in +/- won't be too great...
Of course, there are also some "sexy"/"exciting" funds available...if u want some "excitement"

To give u a taste of it...

In recent times, my experience are
Biggest 1 month gain: +4.3%
Biggest 1 month loss: -2.4%
Lowest 12 months gain: +2.8%
Biggest 12 months gain: +17.4%

FYI, my portfolio are properly structured and quite "balanced".

This post has been edited by Pink Spider: Oct 24 2015, 04:37 PM

Please read Post #1 THOROUGHLY to understand dividends/distributions and units in the context of unit trusts.

Intra switching between equity funds from the same fund houses are usually free except for certain fund houses like RHB. For switching between different fund houses, you can utilize the credit points.

This post has been edited by Vanguard 2015: Oct 24 2015, 04:49 PM

I agree. I moved on from bank to FSM because one of the many reason which is convinient. I can do my purchase/sell transaction online instead of moving to the bank.

Throughout my years of investing in FSM, I haven't really use their investment specialists help for any advice. Stay in this forum long enough, participate in discussions and you can learn way more and make the necessary decisions.

This has work well for me, at least getting way better rates than FD

it is worth to invest since the response is good here ?

This post has been edited by dummies: Oct 24 2015, 05:14 PM

Already read. But kind of confusing.

Isn't it by buying after a dividend is is given, we get more units/RM? Yes the NAV will drop. But won't the NAV increases again say after 6 months? Then after that you have this statement

So lke that how can one get profit from UT? How can it gained?

What is UT? It is basically a collective investment scheme. The Fund Manager pool all the unit holder's money and buy into assets. Let's take CIMB Global Titan Fund for example, the fund manager use the money to buy Apple stock in NYSE. Apple stock declare dividend and pay to the fund's bank account. The fund appreciate in value because its bank account increase in money, hence you see the rise in NAV ( for lay person just call it fund price).

Let's say the price of Apple stock also increase due to stock rally in NYSE, the fund price also rise because the underlying asset ( i.e., Apple stock) has appreciated in value.

This is how the fund gain profit. Hence whether it is dividend or gain in underlying asset price, it does not matter, the price of the fund also increase. We let the fund manager worry about the dividend and what's not. The unit holders just see whether the price goes up or down.

Xuzen

Ok thanks for explanation. Is a bit clearer now. You said don't sell. Just hold. If one does not sell, how to rebalance? (refering to my previous rm10k example or we pumped in more?)

Also any increase in fund price can be wiped out by a decreased in the fund price right? So like that, isn't it better to cash out the profit before it is being wiped out?

This post has been edited by Ramjade: Oct 24 2015, 06:03 PM

rebalance will depends on the percentages u set for certain region/sectors and it does not mean selling off the entire holdings but to partially switch the gains into the area of loss .

I know. But Xuzen said don't sell. If don't sell, how is one going to rebalance? Unless one pumps more money inside?

In my simple understanding. As I do not yet know about fsm credit thing.

Fund A 5k. Fund B 5k.

6 months later.
Fund A 5.5k. Fund B 5.1k.

Most direct.
Sell Fund A 200 bucks. Buy Fund B 200 bucks.
Now it becomes
Fund A 5.3k. Fund B 5.3k.

Now. There are some conditions.
When we sell. And then buy again. We incur 2% sales charge.
Sometimes. If both are same company fund. Such as both also CIMB punya. They waive that. So it becomes intra switch. Either it has no switching fee. Or it has a reduced switching fee.

Either way. We are selling then buying into the other fund to re balance. Or we are switching into the other fund to re balance


Xuxen recommends not selling. He means it by.

Let's say. Fund A now is 6k. You got a whopping 1k profit.
Then you go cash out. Either 1k or all of it. And didn't invest back. This is the condition of cashing out.

thanks Xuzen for the illustration. that s how it works.

This post has been edited by prince_mk: Oct 24 2015, 06:40 PM

Let's say someone invested 500k in UT. One month later the fund goes up 3%. If he takes profit, he earns 15k.

If you invest through agent, I suppose he/she does not tell you to take quick profit. Your money will stay invested for 10 years or more.

BTW, when someone tells you how much he earns in very short time, be very skeptical.
1. He does not tell you how much his initial capital was.
2. He does not tell you the instances when he lost the gamble.