lesson learnt. my dad became the guarantor for the company instead of his partners. when shit hit the fan everyone high tailed and he was left with the dying company. hence why I'm a little jittery when problems hit close to home and I take it very personal when our leaders or people around me keep saying not to worry. the economy is doing fine. Malaysia is a great place. it will recover.

I don't wanna go through another recession man. it's not fun.

vincabby is right.. we will probably have another huge global downturn. The right attitude in a global recession is to buy when SHTF and the newspapers are screaming about it, and everyone says the world is doomed and will never recover. Newspapers just have about the right time lag for that

I wish I was there, would have tried to recover it, there's nothing more attractive than a good company or country with nothing left to lose, what's the worst that can happen?

For those who are unit-holders of Manulife India Equity Fund; below is the fund manager.


Mister Rana Gupta

Dear Sifus,

Very basic question:

When do you all sell? When profit reaches....???

1)

[attachmentid=8282652]

diversification. apples to oranges. Manulife US =/= TA Global in terms of the allocation the funds invest in please look into the fund fact sheets

2)

The NAV price of the fund that I'm interested in is quite high now, should I stay away? Investment gurus always say "buy low, sell high"...
» Click to show Spoiler - click again to hide... «
First of all, understand what is NAV price. I always like to explain things by using simple examples. Here goes...

- Fund ABC issues 1 million units at Initial Offer Price of RM1.00 per unit.
- As such, at Day 1, NAV of ABC is 1 million units x RM1.00 = RM1 million. NAV price is RM1.00.
- After the end of the Initial Offer Period, ABC starts to operate, it starts to invest.
- Let's say ABC bought RM200,000 worth of Maybank shares, RM300,000 of Dutch Lady shares and RM500,000 of BAT shares.
- Let's say after 1 month,

Market value of holdings
Maybank RM180,000
Dutch Lady RM360,000
Guinness Anchor RM400,000
BAT shares were sold off during the month
Total value of equities held: RM940,000
Cash: RM50,000 (dividends received from BAT)
Total value of net assets i.e. NAV: RM990,000
NAV price per unit: RM990,000 / 1 million units = RM0.9900

Ah Beng says: "ABC is now cheaper, can buy!"
Answer:
NO! You cannot determine the "cheapness" of a fund by looking at its NAV price alone. We can only deduce that the ABC had made an NAV loss of 1% during the 1-month period, but you cannot say that it is "cheap".
The fund could have bought Maybank when it was overpriced, and now its holdings of Maybank had gone down 10%. Maybank is now cheap!
Guinness Anchor could be oversold, thus ABC sold its holdings of BAT and bought into Guinness Anchor. Another undervalued stock in ABC's holding!
However, Dutch Lady have rallied 20% in the past 1 month, it could be overbought i.e. expensively valued now.

Simply said, you determine the "cheapness" of a fund by reference to its underlying holdings. The NAV price CANNOT give you a single clue as to whether it is an opportune time to buy into a fund.

Let's say u are looking at a fund which focuses on plantation stocks. Plantation stocks on the KLCI could be oversold, went down 20% in the past 1 month yet the fund only recorded an NAV loss of 5% in the same period. You might think, "aiya, only -5%, the fund is still expensive, don't want buy in now lah". But you could be terribly wrong; it could be that the fund was sitting on a heavy cashpile during the past 1 month, hence it did not lose much. But plantation stocks are now trading at a discount, it is an opportune time for the fund to buy!

Of course, all this is based on the assumption that the fund manager is not stupid. tongue.gif
If the fund manager still sits on its huge cashpile and refuses to enter the market, then later when plantation stocks rally up 30% the fund could still be sitting there with -5%/+5%.

PAGE 1. READ IT. if don't know what I mean. READ AGAIN.

Thank you for the explanation.
I cannot buy both because there is no enough bullet,so i got to choose one only.

Sifu, I also have a question. I have a fund suffering big loss..

I don DCA regularly, depending on the NAV (I know NAV again, but that is the most obvious thing ).
If I continue to top up, the allocation of this fund will exceed my targetted allocation...
So any suggestion??

KUALA LUMPUR: RAM Rating Services Bhd expects less participation by foreign investors in the Malaysian bond market for at least another quarter, until the onshore foreign exchange (forex) forward market becomes more established.

The local rating agency said the US Federal Reserve’s recent lifting of the federal funds rate and subsequent signal of several more to follow in 2017 may see foreign investors price in this rate normalisation in the coming year and this could also exacerbate the decline in foreign participation.

“Other uncertainties such as US President-elect Donald Trump’s much-anticipated policy direction and the Organization of the Petroleum Exporting Countries’ commitment on oil output could further influence the direction of global fund flows,” it noted in its latest issue of Bond Market Monthly report released yesterday.

“That said, we still expect some capital-market volatility despite the reduced level of participation on account of lingering external uncertainties,” it added.

Following Trump’s unexpected victory that has heightened uncertainties, RAM pointed out that the Malaysian bond market saw the largest net monthly outflow to date of RM19.9 billion in November 2016. The value of foreign holdings stood at RM221 billion as at end-November 2016, an 8.3% month-on-month drop.

who else is still holding Malaysian bond funds? have a read at this

means gona run away from malaysia bond ASAP?

means gona run away from malaysia bond ASAP?

I sold all my Malaysian bonds already.

sorry. not a sifu as there are better masters than me I am just trying to do my part to help around by passing knowledge I have learnt.

Once you have reach your target allocation you can begin to focus building your other funds. I don't know if you have seen one of my post about baking a cake but I'll try one more time  just for you.

building a portfolio is just like baking a cake. you have the base for the cake which is the flour and eggs and butter now think of those as your fixed income funds and balance funds.

they will prop up your portfolio so you can begin to add the frostings, garnishes and decorations which are expensive aka equity funds.  you have many ingredients and brands (funds) to choose from so you choose the best brand names and stick to them. of course there's a ratio. too much frosting the cake tastes bad. too little and it doesn't look good aka you find it hard to sell to people (return)

over the years you change your recipe as you know more brands but essentially your flour and butter stays the same.

Hope this helps.

summary.
stop adding sugar. time to go shopping for a chocolate bar.

PS which fund isn't doing good?

KUALA LUMPUR: RAM Rating Services Bhd expects less participation by foreign investors in the Malaysian bond market for at least another quarter, until the onshore foreign exchange (forex) forward market becomes more established.

The local rating agency said the US Federal Reserve’s recent lifting of the federal funds rate and subsequent signal of several more to follow in 2017 may see foreign investors price in this rate normalisation in the coming year and this could also exacerbate the decline in foreign participation.

“Other uncertainties such as US President-elect Donald Trump’s much-anticipated policy direction and the Organization of the Petroleum Exporting Countries’ commitment on oil output could further influence the direction of global fund flows,” it noted in its latest issue of Bond Market Monthly report released yesterday.

“That said, we still expect some capital-market volatility despite the reduced level of participation on account of lingering external uncertainties,” it added.

Following Trump’s unexpected victory that has heightened uncertainties, RAM pointed out that the Malaysian bond market saw the largest net monthly outflow to date of RM19.9 billion in November 2016. The value of foreign holdings stood at RM221 billion as at end-November 2016, an 8.3% month-on-month drop.

who else is still holding Malaysian bond funds? have a read at this

  no wonder the m'sian bond mkts are oversold now     

So, does that mean fixed income fund and balanced fund should form the main allocation of our unitrust?
Then, we only add in equity fund?

RHB gold fund...It is at a big loss.
I used to gain from it but sold it off. Then I bought it in and now the price is diving downwards

  I am not a bro la...
I google but some articles mention stock in it, so I get quite confused

Ohh..sorry my bad. Lady investors in this forum are very rare and treasured. Like the unicorn, phoenix or golden dragon. Please ask as many questions as you like in the future. Uncle Vanguard will assist whenever possible. 

So, does that mean fixed income fund and balanced fund should form the main allocation of our unitrust?
Then, we only add in equity fund?

RHB gold fund...It is at a big loss.
I used to gain from it but sold it off. Then I bought it in and now the price is diving downwards

Havent sold any yet. 2years and 4 months in...

I have made one switching... cause the eastspring asia pac target return really not performing.

Btw, dasecret topping up any funds? Underperforming ones are malaysia funds, feel like topping up.

Ohh..sorry my bad. Lady investors in this forum are very rare and treasured. Like the unicorn, phoenix or golden dragon. Please ask as many questions as you like in the future. Uncle Vanguard will assist whenever possible.