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

or

wait for the crystal balls to reveal its hidden treasure.

Xuzen

xuzen & wongmunkeong

Waa .... so methodical ...

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

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

Thanks for sharing. I was reading Tony Robbins's book (Money Master The Game)and similar way of asset allocation is mentioned
Going to use this method as my foundation.

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.

Any comment with the way below for profit preservation?

Lets say I set a target of above 3% for equity, when I hit the target , I will try to preserve that by allocating the profit into fixed income funds. In a way I am diluting the equity funds but when the NAV of the equity goes down, I can decide to rebalance from bond funds or let it be.

Any comment with the way below for profit preservation?

Lets say I set a target of above 3% for equity, when I hit the target , I will try to preserve that by allocating the profit into fixed income funds. In a way I am diluting the equity funds but when the NAV of the equity goes down, I can decide to rebalance from bond funds or let it be.

yes. how about this? from high risk to low risk. can't be always just talk about cutting losses when want to take money out. eventually, you need to take it out am i right? so why not take it when u have a profit margin that you are comfortable with?

This maybe one of the hardest question to answer to my mind so don't feel bad if you don't get it spot on, if you cash in your chips in a certain investment it will almost certainly go up, if you stick with it you will almost certainly sedition go down, could taking half be the answer?
Some said 'run your winners and cut your losers'.
While others said 'it's never a bad time to take profits'.

There is no correct time to take profits unless you are the only person in the world who can accurately time the markets, but profit, once taken, becomes real profit, in your hand.
If you think the euphoria will continue and markets will rise further next week and beyond, stay put and enjoy it: if not, consider taking some profits, to enjoy, or re-invest at a better time.

There is no right or wrong answers…it is just yours and other individuals.
Hope this helps.

(got these from the web...I cannot write that logical sense)

This maybe one of the hardest question to answer to my mind so don't feel bad if you don't get it spot on, if you cash in your chips in a certain investment it will almost certainly go up, if you stick with it you will almost certainly sedition go down, could taking half be the answer?
Some said 'run your winners and cut your losers'.
While others said 'it's never a bad time to take profits'.

There is no correct time to take profits unless you are the only person in the world who can accurately time the markets, but profit, once taken, becomes real profit, in your hand.
If you think the euphoria will continue and markets will rise further next week and beyond, stay put and enjoy it: if not, consider taking some profits, to enjoy, or re-invest at a better time.

There is no right or wrong answers…it is just yours and other individuals.
Hope this helps.

(got these from the web...I cannot write that logical sense)

LOL

yes. how about this? from high risk to low risk.
can't be always just talk about cutting losses when want to take money out. eventually, you need to take it out am i right? so why not take it when u have a profit margin that you are comfortable with?

If you think the euphoria will continue and markets will rise further next week and beyond, stay put and enjoy it: if not, consider taking some profits, to enjoy, or re-invest at a better time.

Any comment with the way below for profit preservation?

Lets say I set a target of above 3% for equity, when I hit the target , I will try to preserve that by allocating the profit into fixed income funds. In a way I am diluting the equity funds but when the NAV of the equity goes down, I can decide to rebalance from bond funds or let it be.

........ 
Also, yes, eventually we will take the money out, but i only plan to take them out, if i need them to achieve my goals, ie buy car/house, other personal milestone. that's why i invested in the first place. of course, hopefully when i withdraw my investments, it's not another 2008.

...........There is no right or wrong answers…it is just yours and other individuals.

.......if i know the euphoria will and will not continue, there's really no need to discuss anything. my sticking point is, we can't time the market hence the statement doesn't quite work.

I just saw a section in FSM that says new funds so that got me thinking how do you guys judge whether to plunge into a new fund?

is it the geographical location? the management involved in the fund? the investment the fund is investing?

if so what makes you believe this fund will be THE fund in the future?

https://www.fundsupermart.com.my/insurance/...underwriting-18

I tried opening the link on my phone and plug in didn't support it. anyways should I get it for my dad? I can't view the terms and conditions atm.

he isn't covered by any insurance and he is age 59 now and I am worried that anything happens to him, my measly 30k emergency fund I have isn't enough to cover him. I hope this doesn't divulge the topic since its under FSm