For the benefit of blur blur Ramjade and other similar noobs:

To me selling means cashing out of the fund and the proceeds goes into your pocket (or bank account).

What I actually mean when I say rebalance is not selling; it is more properly termed switching. The money goes from one fund to another without getting into your pocket.

This is technically not selling, and you do not get whacked with another sales charge.

Understand now?

The money is still in the fund system and is still money make money. Or some would say, let's ride the profit.....

What selling means, you completely take the money out of the system to buy something and don't intend to invest that portion anymore.

Xuzen

The illustrations in Post #1 is the most layman I can go...if u still don't get it, just listen to xuzen...

E.g.
U invested RM10K in Fund ABC one year ago
How much is your investment worth today?
That's all u need to know. Full stop.

Don't bother with the mechanics of NAV pricing and unit numbers if u can't get it.

That sounds so like that cocky cat. I think most of us knows who I'm referring to

This post has been edited by Pink Spider: Oct 24 2015, 07:15 PM

Alternatively, save 400 and buy Fund B.
Now you have: Fund A 5.5k, Fund B 5.5k.

Person A if capital is RM 1.5Milliom, in one mth fund price naik 1% only (very likely to happen) means profit RM 15k!

Person B if capital is RM 15,000, fund naik even 50% in one mth (very unlikely to happen) still less than person A.

That is why the rich can continue to be rich easily.... it is mathematical logic!

Xuzen

Let me show u my rebalancing.

My unit trust investments are meant to be my "supplement" to my EPF, i.e. meant for retirement, not savings for marriage or for home downpayment. Hence, I don't "cash out".

Every month I got some savings (salary less expenses)
I park all my savings in CMF

Let's say I have funds A, B, C, X, Y and Z
I designed my portfolio in such way that each fund makes up 1/6 of the portfolio
When my UT portfolio is doing well as a whole (i.e. all funds go up almost in tandem), I do nothing
When funds A, B and C do well but funds X, Y and Z underperformed, I top up funds X, Y and Z to "rebalance" my portfolio
When all the funds screwed up due to market weakness, I top up all the funds

^
This

This post has been edited by Pink Spider: Oct 24 2015, 07:30 PM

But you hold the temptation to cash out when it goes up say 20%?

How about can increase in fund price be wipe out by loss of that fund? Can that happen?

No.

Apa bahasa lu cakap???

alright. after i get pay for this mth, I will follow this rebalancing way.

Eg, original fund rm10k. After 6 months become rm12k. After another 6 months become Rm90.

Is the above possible? Any way you take to minimise that from happening?

from an article for RHB-OSK Pre-IPO & Special Situation Fund 2 from FSM......I think it should be similar.....

Conclusion

In short, private equity investments could enhance the returns of investors’ portfolios and diversify overall portfolio risk with its unique approach of investing in unlisted assets. Investors should take note that the RHB-OSK Pre-IPO & Special Situation Fund 2 is illiquid in nature with its investments in off-market securities and its lock in period of 5 years, indicating that investors will need to stay invested throughout the period and are not being able to liquidate their investments during the lifespan of the fund. Nevertheless, the fund intends to distribute income received or realized profits (on a quarterly basis) during the investment period and distribute both the profit and principal of exited investments over the subsequent two years, which could be a mitigating factor for the illiquidity that investors faced. Thus, the key deciding factor here will be illiquidity and we strongly suggest investors who are interested in this fund to take this factor into serious consideration before making the decision of investing in this fund. .

http://www.fundsupermart.com.my/main/resea...?articleNo=4845

RM10K > RM12K > RM90

???

Read the news.
Know what is happening to the world.
Compare the fund(s) that u invest in to its benchmark and its peers.

Awesome way of explaining the rebalancing of profile alternatively to switching funds

Why cash out haha , let it grow !!! into a tree !!

What Is Rebalancing? Does it works?

https://secure.fundsupermart.com/main/resea...?articleNo=2215

https://secure.fundsupermart.com/main/resea...?articleNo=4721

https://secure.fundsupermart.com/main/resea...?articleNo=3896

https://secure.fundsupermart.com/main/resea...?articleNo=1849

Sorry. Typo. Rm9k

the fund must be a farkup one to tumble liddat

My answer remains the same.

Investing is in a way a gamble, though a calculated one.

U cannot win all the time.

As long as IN THE LONG RUN u win, don't fret too much about the losses along the way.

This post has been edited by Pink Spider: Oct 24 2015, 08:23 PM

Do a Dollar Cost Averaging , instead of 12K , u put 1 k each month to minimize exposure to volatility

below posts shows good illustrations of relativity....did the blogger said how much he invested?

btw,
FSM frequently updates the lists of top 5 best performers.....see how much returns it has.....if you managed to get into that......lump sum....HUAT-lah.....
http://www.fundsupermart.com.my/main/fundi...formed=topFunds

FSM frequently updates the lists of top 5 worst performers......see how much returns it has.....if you managed to get into that ...lump sum....POK KAI-lah....
http://www.fundsupermart.com.my/main/fundi...orst_Funds.svdo


This post has been edited by yklooi: Oct 24 2015, 08:34 PM

But if say you deposit rm1k/month and it didn't make loss, then at the end of 12 months, you will have >rm12k. Like that, it could fall to Rm9k right?

Then top up 3K at month 13 lor

I repeat - TAKE A LONG TERM VIEW

And adopt a portfolio approach

Chances are that when that happens, apalanjiau fund also made a loss, it could be a market crash.

If u cannot take a loss at all, UT or any investments are not for u.

Rewind back to 2008...is there any funds that are spared?
And have they recovered since then?

This post has been edited by Pink Spider: Oct 24 2015, 08:42 PM