I remember it has to be posted. But I could be wrong

I have a SG bank account but I'm pretty sure any malaysian bank can TT to Singapore

Sifu, how to tag YCK1987? ... told you I'm hopeless
FSM MY thread so hot and no activity here

prince, dasecret and yck,... Thank you for your inputs.

In essence, what I gathered from the inputs is that dividend payouts are actually 'left-pocket-to-right-pocket' moves, and these moves are damaging to the nav. So, it is better to buy funds which do not give out dividends.

If we intend to diversify our investments by including funds which give out dividends for our cashflow, what can we do ? Or are we saying here that this is actually a bad idea, and that there is no such thing as a fund (or a unit trust) that gives out dividends, and still to continue to perform well in the long run ?

Edited by adding to the third para to make the statement clearer and more precise.

Or, if you like a fund that does not do distribution, you can DIY dividends by selling some units on a periodic basis to simulate the dividend payout

The following reply would be most relevant to my current research :-

Then what's the point of dividend distribution since units and NAV price has negative correlation?

Distribution is very relevant especially to retiree investors who want a source of income. For this type of investors, basically what they can do is to invest in a fund that has a distribution policy, and elect to receive distributions in the form of CASH. To an investor who elect to receive distributions in cash, distributions are a form of income, a cash inflow; gains in NAV price are capital growth.

E.g. upon retirement you have RM1mil which you invest in a fund. The fund that you invested in made a return of 10% and declares 8% as dividend for the financial year, that's RM80,000 of cash inflow for you! Of course, when a distribution is declared and paid, the NAV price will drop proportionately. The balance of 2% that are not declared as distribution will be reinvested for future growth.

I would like to mention a HY Fund which I have invested in since 2007. It pays out a monthly dividend.

I bought the fund at an average price of EUR11.04 back in 2007/2008. The price as of today is at : EUR11.24.

Throughout the years, I have been receiving dividends every month without fail, though the amount given out goes up and down. I received the dividend amount for October 2015 two weeks back, which came to EUR 0.0390 for the month of Oct, 2015.

Annualised for EUR 0.0390 came to EUR 0.468. Hence, yield = 4.23%.

I have cap gain as well as monthly dividend for this HY fund. This fund has done well over the European Crisis too, not to mention other crises that came about in the past 7 - 8 years.

Would you agree that this should be the type of fund that we should hunt for ? Alternatively,...should we rather look at it as : if this fund does not pay out dividends, the nav price could have reached EUR 13.00 today ?

I get it - let me add this,... a fund can be made up of equities (an equity fund), or bonds (a bond fund) or a mixture of equities and bonds (a balanced fund).

Let's take an equity fund as eg. The nav would be the total book value of all the equity counters in the fund divided by the number of counters in the fund.

Pinky, I appreciated your reply... so, an equity fund is not equal to a mutual fund ? What are the underlyings of a mutual fund ?

Edited by adding : did not see your immediate previous post when I replied to this. Okay,..I'll take it from here. You don't have to answer the above. Anyway, I am into Bond Funds,.. so I'll focus into bond funds, specifically High Yield Bond Funds.

The 'images are very clear now'.

I was advised by CIS that choose one of them coz they are having same mandate.

What i understand frm FSM Msia thread, sky high price means u get lesser units. when choosing a unit, u should see its performance instead of its price correct me if wrong.

TQ boss to help explain 

Wont consider putting some money into Singapore? SG REITs I was told is not bad too...

Bonds are tradeable, when the price of a bond goes up or down, the annualised coupon payout of the bond when divided by the current mkt price of the same bond goes up or down too. This in turn, gives rise to the yield of the bond.

This is called the : yield-to-maturity = YTM.

The YTM amortised cost of the same bond is related to this movement as the bond undergoes buying and selling in the marketplace where it is traded upon as it apprached its maturity date day-by-day, if it is not a perpetual bond.

But be careful of a bond that is redeemable, where it can be called back by the issuer at the pre-agreed terms of the issuer. We must understand the terms.