I am not sure.

But as YK Looi puts it, no opportunity for the existing investors to get "revenge" anymore by using DCA or VA once the fund house stop accepting new investments.

This post has been edited by Vanguard 2015: Jan 21 2016, 02:35 PM

Maybe not kaput yet. But this is Boleh-land. Never say never.

This post has been edited by Vanguard 2015: Jan 21 2016, 02:37 PM

I like this portion of the FSM article,

I wish I have sufficient ammo to do VA every month. Alas, I am not a money printing machine. Therefore the next best thing is to do quarterly VA.

I require a huge capital layout to do VA in April 2016. If any forumers here are prepared to give me a friendly loan, please let me know.

or Courts Mammoth Malaysia?


What do you mean bro? The RHB gold fund is not moving in tandem with the gold price?

I think we get confused sometimes between investing in physical gold and a precious metals fund.

As I understand it, a precious metals fund invest in the securities of mining companies. The mining activities are not limited to gold. Therefore the performance of the precious metals fund will be affected by the skills of the fund managers in picking the right companies and also the management skills of the directors managing the mining companies.

The price of gold alone may not the sole determining factor of how the fund will perform.

Does this make sense?

This post has been edited by Vanguard 2015: Jan 22 2016, 04:14 PM

Bro, I am sorry to hear about your losses. But something is wrong somewhere if you cannot beat the FD benchmark after 5 years. I suspect the problem lies in your asset allocation. Do you mind posting it here so that we can offer some constructive analysis?

Bro, Monday is a public holiday. You can ask CIS on Tuesday. Please share their advice here if possible. Would they advise that:-

1. You have deworsified?
2. Over traded?
3. Did not follow VA or RSP?

Without knowing your investor profile, I suspect the main problem is No. 1 above. This means you are buying too many funds which have a high degree of correlation. My own definition of high is 0.85 positive correlation and above.

An e.g. of deworsification is when Fund A is selling Maybank at RM8 because he thinks it is too expensive. Fund B is buying Maybank at RM8 because he thinks it is cheap.

As an investor, you are holding both Fund A and Fund B in your portfolio and paying the transaction costs for this Maybank deal. So what do you get at the end of the day? 1-1 = 0

Never ask never know. Thus far I have only dealt with Alfred from FSM. I truly think he is the gold standard in his services.

Doesn't FSM design or recommend a portfolio for high value investors after assessing their risk profile? I dunno know. I am just guessing.

Lukenn, I agree 100% with your view. Unfortunately a public forum like this will attract the good, the bad and the ugly.

For some forumers here to expect 100% accurate FREE special tailored advice from a professional financial adviser in a public forum to enhance their portfolio? Wow. I am just dumbstruck.

I hope you will not be put off by this and will continue to contribute to this forum. I think the forumers here including myself have benefitted from your insight. Based on my calculation, we have less than 5 real sifus in this forum. We could benefit by having more sifus.

Sorry I just assume high value because I thought you posted before that your current loss now is equivalent to the price of a Proton Saga. That's a lot of money in terms of paper loss.


I see. So if ordinary investors ask the CIS for their advice, would they just say please follow one of the FSM Recommmeded Portfolios, do RSP and have a long term investing horizon of 5 years and above?

Well if it is any consolation to you, my current paper loss is about RM30k but I still ZZZ at night like a baby.

My approach to life? Don't worry be happy. This too shall pass.

Eh? Apa cakap? I thought we are not supposed to monitor our investments for unit trusts? That's why we have fund managers to do the job? Daily monitoring is only if we are buying shares directly? Therefore only quarterly, half yearly or annual rebalancing is necessary for unit trusts?

Hi thanks Dasecret. Maybe I will ask them to look at my portfolio

Noted with thanks YK Looi.

Maybe because it is paper loss and not realized loss?

Anyway, I always try to look at the bigger picture in life. Once I had a client who sold his shares in a business. He received something like RM30 million. Unfortunately he had liver cancer and passed away. All the best doctors could not save him. Another rich client passed away suddenly a few years ago from dengue.

So why I should get stressed up from unit trust investing? I still have my life, my health and my family. That is all that matters.

Sorry everyone. I think I was not very clear in my early post. What I meant to say is that all my previous paper gain of RM30k has been wiped out. Therefore my current ROI is about +0.67%.

This post has been edited by Vanguard 2015: Jan 24 2016, 11:59 PM

Psychological effect mah. I didn't sell. Therefore I didn't suffer any loss.

Well I guess it depends on the degree of positive correlation. We can use the Morningstar Asia X-Ray portfolio to find out. If the positive correlation is 0.80 and above between 2 funds, then I think it will have some effect on the long run performance of our portfolio.

I find it quite entertaining reading the posts from last night. Especially the debate between stock investing and unit trust investing and which is more superior. Duh???

My 2 cents view being a layman investor. I assume we are investing with a mid to long term horizon (i.e. 3 years and above) and not doing day trading. In the long run, we will make money in a falling market and not in a rising market. It is more dangerous to invest in a rising market rather than investing in a falling market. Does this make sense to you?

IMHO, the key here is staying power, investing consistently and doing at least annual portfolio re-balancing. If we need the money which we had invested into FSM within one year to pay for our wedding dinner, down payment for our house, etc. then we should yank out ALL the money now. This is because we are using the wrong investment tool.

As one author wrote, "If we are investing in unit trusts without having any emergency fund, then our investment decision will depend on the weather. If it rains heavily and our roof is leaking, we will take the money out from our unit trust investment to repair the roof".

Wow, I thought the author was only drawing an analogy between roof repair and investing. I didn't know it could really happen in real life.

What I do in a falling market? Keep on buying either using RSP or VA. If no money to buy, then just stay put and do nothing. But hey, I am talking about investing for the long run. Thus far, it works for me. So I don't see the need to change it.

Why I do this? Because nobody can time the market. Even if someone claims that they can time the market using technical analysis or fundamental analysis, etc. I bet my bottom dollar that they cannot do it consistently over the long run.

I think the phrase "don't catch a falling knife" is sometimes misunderstood. In the context of FSM, IMHO, it can be used for Am Commodities and Am Precious Metals. Just my 2 cents worth la.

Hahaha. I dunno how to do trend trading like some investors here. All I have are my titanium balls and spare ammos. I have no fear. Come, come, come. The markets can fall some more. Then I will gain more in the long run.

Ahh....now I understand where you are coming from. IMHO, the problem lies not in using VCA/DCA in a rising or falling market but in the investor's asset allocation. As I have said before (as repeated in many investment books), the long term success of unit trust investment lies in the investor's asset allocation.

E.g. an investor has 8 different funds. He thinks he is diversified. He buys CIMB Asia Pacific Dynamic (Ponzi 2), he buys Am REIT, he buys CIMB Greater China fund, RHB Asian Financial Fund, etc. Lo and behold. When we use the Morningstar x-ray, we discover that his allocation in China is 65% and 35% lain-lain. So he fails the asset allocation test. In the current market, all I can say is....good luck. He will need it.

So I thought it is logical that we buy the whole farm. As I have said before, buy the chicken, the sheep, the cow, the goat, buy a bit of everything. If an investor taruh everything or a majority of his investment into a country specific or sector specific fund, then he has nobody to blame but himself. VA or DCA may or may not save him. Remember the lost decade for Japan and US?

God willing, I will not run out of ammo. Why? Because I am working. So? I have savings. Because? I spend less than I earn. Therefore there will always be a source of income for fresh injection. We shall see whether the 3% signal principle works or not for me

This post has been edited by Vanguard 2015: Jan 26 2016, 09:46 PM

Welcome to the FSM club.

While waiting for the sifus to reply, please allow a small fry like me to reply first. Your portfolio looks great but you may want to consider increasing your bond portfolio. The waters are choppy this year and some investors are already vomiting or bailing out.

So I suggest adding the RHB Asian Total Return Fund and the Eastspring Bond Fund into your portfolio to stabilise it. Reduce your Titans and Ponzi 2.0 to RM100 each per month. Use the extra RM200 for RSP by dividing it into RM100 each for RHB ATRF and EBF.

You may say, "But I am young and I am an aggressive investor. I can take the risk...". Yeah, yeah. I have heard that line before. That's what most investor think. But they have been proven wrong again and again. You can always switch back to become an aggressive investor next year once you get used to seeing red in your portfolio.

At the end of the day, it is your money, your choice. Good luck!