Did u call CIMB CS to clarify?

Sure or not? Can withdraw any amount during office hours. Money available on the spot. Want 6 digit also no problem as long as got bank account.

Any UT can match that? Yeah not as liquid as eGIA-i as not available on weekends but it is as liquid as FDs. For FDs you still need to visit banks.

Yes. That's why I keep about 100-150 units left inside there.

1.06 charged for per tried? What online banking you're using?
What amount is "logical" input for each try?

Some banks allow uplift of expired FD via online

If your money >rm30-50k, how to uplift transfer it out online? Still need to visit bank

U can transfer via IBFT function

guys, what is the biggest sum u guys succesfully top up online via cimbclick?

You need to understand that dividend declared will reduce the asset of the fund, hence NAV will drop.

Since fixed price fund had their NAV fixed at RM1, performance of the fund is irrelevant, and the dividend declare will not bring down the NAV, hence the reinvested unit into your holding will increase the value of your fund

Contrast to ASNB variable price fund (ASn/ASG) and UT in general, dividend declared will bring down the NAV value by the dividend declare. Should you choose to reinvest the unit at the latest NAV, your fund value will remain the same. However, if you choose to cash out the divdend by cash/cheque, your fund value will decrease by the amount of dividend you cash out.

Hence for UT in general (except FP Asx), the fund value will be determine by the amount of unit you hold and the NAV aka return of the fund, dividend declared wont affect you fund value as a whole.

So, RHB Islamic Bond fund, being a UT, performance will be determined by the growth of the NAV. But being a fixed income UT, the fund is generally low risk, hence less volatile to achieve steadily rising performance and have an annualized return about 7% in 10 years historical performance.

Of course, past performance is not a representation for future performance, likewise for dividend declared for FP Asx, but it is a benchmark that it can deliver consistent performance. Moreover, compared to its peers, RHB islamic bond fund was proved to be the pioneer in sukuk (islamic bond) UT fund (it just shariah compliant investment, everyone can invest into it)

Should you sell your holding for RHB islamic bond fund, you will sell according to the current NAV, but I will recommend to put the amount you invested at least a year to prevent redemption charge of 1% of the amount you withdraw (if the amount you invested stay in the fund at least a year, the redemption charge is not applicable)

I will recommend the following strategy:

Highest level emergency fund : eGIA as you can uplift everyday (including weekend and PH) from 6am to 10pm
Comment : Very liquid

Medium level emergency fund : FP Asx as they gave high dividend but only can sell during working days and office hour at the moment (unless online platform change the landscape :lol)
Comment : Traditional liquid (OTC withdrawal)

Lowest level emergency fund : RHB islamic bond fund as they provide consistent higher return (historical) than Asx FP dividend, provided you can take a bit risk and can forgo the FD's PIDM capital guarantee concept.
Comment : Need few days to receive the fund, and the amount invested need to be put at least a year to avoid redemption charge

Yes, banks will imposed RM1.06 per try regardless of whether your application is successful or not

Yeah, RM1.06 charged per attempt regardless successful or not, that's the worst part of trying online.

I'm using CIMB clicks.
I dunno what is the best logical input. I know it's a difficult process since many people are trying so I might suggest to start with a small amount.

Thanks for such informative feedbacks and advised

I need to read more about the concept of vp funds, but now I starting understand why dividends of vp funds need to reinvested into the fund again. To "hold" the current NAV value?

I don't get it about asx fp,
For example, I uplift/sold units of ASM (fp fund) before 6 months of dividends declaration. Am I eligible to receive 6/12 months of dividends? But how it's calculated? Since the coming dividends not yet declared.

Do I get pro rated dividends like how I surrender in certain fd?

Ya lo.. charges incurred no matter success of top up or not. I think it's hard to top up online because I have no idea how much shd I try.. 1k? 5k? 10k? Few hundreds?

I think can get 5 figures post dividends declared.

To maintain the fund value, that is before dividend = after dividend reinvested to be exact

Regarding to Asx FP, think of it like normal saving accounts which intesrest are calculated daily and credited halfyearly, even though you withdraw some of your savings from it, as long as your account is not closed, you will still get the pro-rated interest at the time of interest crediting

Similarly, Asx dividend is calculated monthly minimum balance and credit yearly

Say for a hypothetical FP which has a dividend distribution date of 30/6/2016

From 1/7/2015, you have 3000 unit in it.

Then on 11/10/2015, you top up 1000 unit into it.

Then on 1/3/2016 you top up another 500 unit into it.

Then on 4/4/2016, you withdraw 700 unit from it.

The dividend is calculated by monthly minimum balance illustrated below:
note: X = dividend distribution yet to known until distribution date

July 2015 to September 2015 : 3000 * 3 / 12 * X

October 2015 to February 2016 : 4000 * 5 / 12 * X

March 2016 : 4500 * 1 / 12 * X

April 2016 to June 2016 : 3800 * 3 / 12 * X

Say on 30/6/2016, they declared 6 sen per unit (which is X)

As long as you still have minimum balance in the fund (much like saving account) by the distribution date, you are entitled the sum of pro-rated dividend calculated as above

This is unlike premature withdrawal of FD (more tahn 3 months) where you get the pro-rated interest upon uplift

Asx FP follows mechanism similar to saving account

This post has been edited by AIYH: Oct 14 2016, 01:10 AM

Of course, I am comparing between eGIA and Asx FP, UT liquidity confirm lose 9 roads compared to either of them

This post has been edited by AIYH: Oct 14 2016, 01:20 AM

very very well explanations with given example, I feel like listening to financial classes during University era

Many thanks bro, I've learnt some useful thing!


So the total dividends I would received as at 30/6/2016: (6sen) equally as "total amounts" of below calculations?

July 2015 to September 2015 : 3000 * 3 / 12 * X

October 2015 to February 2016 : 4000 * 5 / 12 * X

March 2016 : 4500 * 1 / 12 * X

April 2016 to June 2016 : 3800 * 3 / 12 * X

guys I've some off question about "Full flexi mortgage loan" vs Asx fp,

Is it wise to park money into current account of full flexi mortgage loan (to reduce interest payable) instead of Asx fp?

I simply think it's better to invest those money into Asx fp because of the return of fp/vp funds is out run the interest charges of mortgage loan... (let's say 4.6%)

Am I right? Or I've neglected necessary parts that should take consideration?

Hmmm.........

Forgive me for having such a long conversational explanation

Just a recent graduate style of talking to prevent miscommunication

Yes

Never have a mortgage before, but roughly understanding its feature, depends on your priority.

If you want to be debt free as soon as possible, dump all into full flexi loan account can reduce your interest charged and overall loan amount. In case anything happen that affect your income, you won't need to pay back as much. Liquidity should be about he same as Asx FP and eGIA..

But if you want to take advantage of return, i suggest don't depend only on Asx FP, understand more about other investment options and diversify it to achieve potentially higher return However it will not be as liquid, so make sure you know what you are doing

This post has been edited by AIYH: Oct 14 2016, 07:37 AM

AIYH

Morning, man don't apologize, I've learn a lot from your explanation
Yeah, you're right about diversification. I'm learning to know more about reit and vp funds.


Actually I don't understand this statement "To maintain the fund value, that is before dividend = after dividend reinvested to be exact". Do you mind to show me some example with figures? (Whenever you're in leisure)

I would like to know "the impacts" of taking out dividends from vp funds, and why it's "better/suggested" to reinvest into the funds.

Have a good day

Case Study:

You interested to invest in Fund A.

Currently Fund A having NAV @ RM0.50

Assume the fund does not have sales charge (for simplicity )

You decide to invest RM 1,000.00 into it, which grants you 2000 unit.

One year later, the NAV is @ RM0.60, with your unit holding, your current fund value is RM 1,200.00, 20% return (again, imgainary )

Scenario 1:
The fund manager decided to declare distribution of 5 sen per unit (arbitrary), which in turn, you current holding will entitled you RM 100.00, and right after the distribution, the NAV dropped to RM 0.55 due to distribution.

Choice 1:
So, if you decide to cash out the dividend, you will get RM 100.00 in cash/cheque.
Your unit holding will still be 2000 unit, however now NAV @ RM0.55, so you fund value is RM 1,100.00
Fund RM 1,100 + Cash RM 100 = RM1,200

Choice 2:
If you instead opt for reinvestment (which is the default option for most UT in Malaysia), your RM 100 will be reinvested @ NAV RM 0.55, which granted you 181.82 unit (rounding), so your holding will have 2181.82 unit.
Your fund value = 2181.82 unit * NAV @ Rm 0.55 = RM 1,200.00

Scenario 2:
The fund manager decided not to declare distribution and everything BAU (business as usual), NAV remained @ RM 0.60

Another year later, the fund has a return of 10% for that year (again, imgainary ), assume no distribution occur yet.

Scenario 1 Choice 1:
NAV rose to RM 0.55 * 1.1 = RM 0.605
You will have fund value of 2000 unit * NAV @ RM 0.605 = RM 1,210.00
Along with the cash distribution of RM 100 you have last year (assumed you didnt touch it or you spend it)
Total value = Fund value RM 1,210.00 + RM 100 = RM 1,310.00

Scenario 1 Choice 2:
NAV rose to RM 0.55 * 1.1 = RM 0.605
You will have fund value of 2181.82 unit * NAV @ RM 0.605 = RM 1,320.00
Total value = Fund value = RM 1,320.00

Scenario 2:
NAV rose to RM 0.60 * 1.1 = RM 0.66
You will have fund value of 2000 unit * NAV @ RM 0.66 = RM 1,320.00
Total value = Fund value = RM 1,320.00


As you can see, Scenario 1 Choice 2 and Scenario 2 showed that distribution is irrelevant as they will result in the same value whether regardless of distribution.

However, Scenario 1 Choice 1 showed that if you do not utilize the RM 100 by reinvestment or other better investment, you will end up losing compared to reinvestment choice

The problem is quite some UT agents intentionally/unintentionally decided to use dividend (distribution) as the means of describing the performance of the fund to misleads customers, who they thought the meaning of dividend in UT is the same as stocks and reits, which is not