Guy3288, I am quoting from FSM's reply below to my e-mail. I hope this helps.

This means that if you invest RM100k, the sales fees is RM2000K. You have to calculate the opportunity costs of not investing the RM2000k for the next 5 years. Your actual investment is only RM98K.

The fund is currently about 50% subscribed. Therefore they may close it before the expiry date of the IPO on 18th November 2015.

Let's look at the track record of RHB's previous IPO fund. I am quoting from FSM's reply below.

So is the RHB PRE-IPO & SPECIAL SITUATION FUND 3 worth buying?

Strictly speaking, it is a private equity fund and NOT a unit trust. It is more like Warren Buffet's style of investing.

IMHO, it is suitable for "qualified investors" who are prepared to risk it all, i.e. suffer a 100% loss of capital. Therefore this means that it should only form 5% to 10% of our total portfolio.

A risk rating of 10 is not sufficient.

Yes, previous RHB fund series obtained good results. Some brief insights:-

Pros

1. We cannot redeem within 5 years. Therefore no such thing as panic selling or making emotional decision. We cannot even check the NAV price every day if I am not mistaken.

2. Superior return and less volatile as compared to stocks and hedge funds?

Cons / Risks

1. Generally all the risks are stated in the Product Highlight Sheet.
2. Cannot redeem within 5 years. Therefore we have to make sure that we have emergency fund for medical expenses, etc.
3. It is a closed ended fund and not a unit trust. Therefore there is no such thing as using DCA or Value Averaging to average down the costs of the NAV.
4. It is NOT capital guaranteed. The returns are also not guaranteed.
5. The fund is incorporated in the Cayman Islands. If things go south, I don't think even Securities Commission can help the investors.

Comparison with other products

1. EPF - Self contribution maximum up to RM60K per year. Minimum statutory annual dividend of 2.5% per annum. Capital guaranteed.

2. Insurance endowment policy. Minimum lock in period of 10 years? Interest rate and bonus of about 5% (my wild guess). Capital guaranteed.

3. Fixed deposit. Current return of about 4.05% for 12 months (Maybank). Minimum deposit RM30K. Capital guaranteed.


Conclusion

The RHB fund aims to double its investment in 5 years. This works out to a return of about 14.87 % per annum. Roughly you expect to see about RM14,870.00 return per year for a RM100k investment.

Yes, I believe it is the same management team as the previous RHB Fund. The fund managers are based in Singapore.

I agree that unlikely that it will suffer 100% loss. The only downside is the 5 years lock in period without any capital guaranteed. But this is how private equity funds work apparently.

So is the fund worth buying? I am not sure. See more info at
http://www.fundsupermart.com.my/main/resea...te-Equity--6375

I took profit today from the following funds:-

(1) KGF
(2) Eastspring Small Cap
(3) Ta European Equity Fund
(4) RHB Asian Total Return Fund

I intra switched all the profits into their equivalent bond houses. I agree that we should not overtrade on UTs....but my fingers are just too itchy sometimes.

Sorry ar. I am not really setting a good example in investing in unit trusts.

Other forumers, please don't follow Vanguard's footstep. He will lead you to Holland.

Note : (1) My profit for the TA European Fund was only 6.73%. I think it fell from an initial profit of more than 10% within 1 week.

(2) My definition of "taking profits" is just my layman understanding. For e.g. if I put RM10K in KGF fund and it grew 10%, I took out the RM1000 profit and parked in into the Kenanga Bond Fund. When the NAV of KGF falls later, I switched back the RM1000 into KGF again (usually quarterly). Strictly speaking, not Value Averaging. Like this OK ar, Pink Spider?

This post has been edited by Vanguard 2015: Oct 15 2015, 06:14 PM

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.

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

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

Yeah..my previous portfolio was too exciting. That's why I rebalanced my portfolio. My heart cannot take it already.

Buat manual-lah bro. You can still pay by logging in on M2U and select:-

1. Bill Payment
2. Make a one off payment
3. Unit trust and investment
4. I-Fast Capital Sdn Bhd

Hi YK Looi,

Based on my personal experience, Point No. 1 is possible, i.e. earning the 1st million by the age of 37. I am only using standard 6 maths. Assuming that a person starts working at the age of 23, his salary, increments, bonuses, EPF, may add up to RM1 million by the time he is 37 (excluding expenses).

But if the article is referring to accumulating a net amount of RM1 million at the age of 37 (after deducting expenses), this is not easy unless one is self employed or a savvy investor.

For Point No. 2, earning the first RM1 million through unit trusts investment by the age of 37, I think this is highly unlikely. Assuming that a person start investing at the age of 23 until the age of 37 (i.e. an investment period of 14 years), I calculated that roughly he will need an initial capital layout of RM200K and a monthly investment of RM1000K and a return of 10% per annum to get RM1 million in 14 years. My calculation EXCLUDES the sales fees and the annual management expenses.

Thus far I have not met a person who invested RM200K in unit trusts at the age of 23. Of course he could have invested RM20K at the age of 23 and then increase his monthly investment to RM3000K but again, this is unlikely.

Therefore IMHO, although the article maybe well intentioned, it is not entirely correct.

P/S: I am just wondering what is the source of the article.

Ahh....that explains a lot. Ok thanks.

Why not just intra switch the excess profit and keep the principal sum invested in EISC, KGF and Hwang Select Asia Jap?

You have no plans to stay invested over the next 5 years?

I agree. BTW, I am also over 37 years old. Therefore (cough, cough) I can speak with some experience about what is realistic and what is not.

For forumers here, I don't mean to pour cold water over unit trust investments including FSM. I am also invested in it. But due to the high costs of unit trust investment in Malaysia including the killer annual management fees, trustee fees, etc, IMHO, it should only form one basket of our investment.

We need to move beyond unit trusts to accumulate wealth.

This post has been edited by Vanguard 2015: Oct 21 2015, 02:52 PM

Bro, selling it into CMF is NOT intra switch. It is considered as selling the funds.

Intra switch means:-

(1) Switching the profits from EISC into Eastspring Bond; and
(2) Switching the profits from KGF into Kenanga Bond.

In this way, you can accumulate credit points. Later you can intra switch back from the bond funds above into the equivalent equity funds within the same fund houses for FREE with zero sales fee.

If you wish, you can also switch later from Eastspring Bond or Kenanga Bond into CMF after getting the credit points.

You are most welcome bro. I am happy to share my limited knowledge and also to learn from the other forumers here.

Yes, next time you can intra switch from equity funds into bond funds for the same fund houses and get free credit points. I think it applies for equity purchases bought at 0% fee as well. This means that if you intra switch a profit of RM10k, you will SAVE RM150 on your next purchase of the equity fund (assuming a sales fee of 1.5%).

This credit points can be utilised for the purchase of any equity fund houses which is NOT limited to the original equity fund which you switched out from earlier.

One note of caution. Please make sure that you switch into a low risk bond fund, i.e. risk rating of 1 to 2.

P/S: I think you have earned enough profit to cover the sales fee of RM2K for the RHB IPO No. 3, i.e., you can now buy in for free.

There is no time limit to stay in the bond funds to get the credit points. Once you have switched into the bond fund and it is reflected in your account, you can sell it into CMF immediately.