Look doesn't matter but performance counts

me approved

me following

so far the performance is doing well. AmReits

it is the time of the year again..... last year was in Nov.
(just like the usual time of the month for the opposite sex)....
time for reflections after the few days of holiday break....

just noticed that my investment ROI is about 12%
just did a mental calculation.....if my investment portfolio were to increase 10% pa consecutively uninterrupted for another 6 1/2 years.....
my investment ROI is about 65 + 12 = 77%
which would mean a 10 yrs investment period...... an approximate IRR of about 6.5%??
realized that "dasecret" was right when he said, "mathematically" impossible to achieve my dream IRR of 8%

if I were to insist on IRR as a mean to see how my investment performed.....then I guess no amount of "GOOD" basket of diversified funds can help to get that......thus not fair / right / correct way of judging how my selected funds performed.

if I dun't look at IRR as a whole, should I look at M-O-M or Y-O-Y to see how my selections of funds in my portfolio performed?

You may want to consider mr guy way. Watch the nav for low value. Buy in. Once it exceeded a certain threshold, sell. He make 7+% with that method. No DCA what so ever.

a timely article......for thinking of buying low and sell high or buying high and selling higher

Can you time the market?...... November 18, 2009
When the market has moved to high levels, predicting its future direction is tricky. Investors are often tempted to time the market - whether it will have further upside or will it consolidate. However, is this the best strategy?
Author : IFAST Research Team

https://www.fundsupermart.com.my/main/resea...the-market--431

how about just seeing when i reach 7% on the fsm account and then i sell it? am i making 7% already? this ROI and wat nots are hard to calculate for a simpleton like me.

sell those that achieved 7%?
if those the stay at 6% then you wait?, eventhough it took them years to reach 6%?

if after selling those that reached 7%?
get out and not invest in? or
buy another fund(s)?
if buy again (another fund(s)) at what criteria?

more info please

say for 3 years scope, that means 21% at the end of 3 years. I sell and not invest? just one scenario.

thanks for responding...
what if it stayed at 15~20% after 3 yrs?
also sell?

"after sell no invest"...exit UT investment after gained 21%?

good question. that's why i'm not too sure and coming here to ask questions. seeing a lot of ppl " taking profit" every now and then. so wondering if it somehow applies to UTs as well.

When To Take Profits?

When should an investor consider taking profits? This article sheds light.

https://secure.fundsupermart.com/main/artic...e-Profits--1783

For those not familiar with the maths behind it, do use the excel provided on post #1. it will help.

And personally, i really think taking profit is not the right thing to be applied on unit trust.

Yes, some of the ones here do do that. but taking profit kinda means one knows the timing of the market and in reality, nobody knows.

How about if one set a personal target say 10% profit (doesn't matter if it goes up higher), sell the whole thing, then look at a fund which is considered low price then buy into that (using the money principal + profit) and wait for another 10%. Doable?

How do you determine a fund is low price? Low could be due to many things like overall market is no good, sector is no doing well, fund is not doing well due to not so good fund manager etc. And also how do you determine which fund is going up. Lots of unknown to trade it like stock.

This post has been edited by kimyee73: Sep 20 2016, 10:50 PM

When to take profit?

When to enter?

Perennial questions that bother UTF investors.

Rather than worry about it and remain clueless and continue to worry because you have no plan.

Rather, have a plan and remain wise and composed and hence less worry!

Try this method:

Let's say you have RM 100K to invest and you have determined to be a moderate risk taker (assuming you have done the risk profile questionnaire that is available from most UT Companies).

So you have decided to split 50% Libra Asnita Bond, 25% Kenanga Growth Fund and 25% Manulife US Equity Fund.

That will be:

Asnita = RM 50K
KGF = RM 25K
US = RM 25K

One year later:

Your portfolio looks something like this

Asnita = RM 52,500.00 (gain 5%)
KGF = RM 22,500.00 (loss 10%)
US = RM 28,750.00 (gain 15%)
=======
Portfolio= RM 103,750.00 (gain of 3.75%)

When you rebalance you will try to make them back to the same % that is:

Rebalanced:

Asnita = RM 51,875.00 (50%)
KGF = RM 25,937.50 (25%)
US = RM 25,937.50 (25%)
======
Portfolio =RM 103,750.00


From this you will realized that you are selling US Fund & a little of the Asnita Bond (or taking profit) and putting them into KGF (topping up) because KGF has seen a sell down.

In this way, a savvy investor have a system that will prompt them to sell or top up the funds in a systematic way.

This method is called "asset allocation model" method. It is scientific, it is unemotional, it can take away your fear and greed. You do not have to rely on external noises anymore!

Xuzen

U so cold & logical, no fun la - most people complain
I have my fun with my $ growth & hunnee - to which i respond, if i bother responding

up till now, still those Qs from a lot of forumers VS a planned approach.
i wonder if they play football or basketball with all attacker or defenders, and not a planned resource & holistic approach

This post has been edited by wongmunkeong: Sep 21 2016, 03:25 PM

xuzen & wongmunkeong

Waa .... so methodical ...

So, how to determine when to drop a fund completely instead of topping up ah ?

Go and consult a UTC..... oh wait...
or

wait for the crystal balls to reveal its hidden treasure.

Xuzen

This post has been edited by xuzen: Sep 21 2016, 03:58 PM