QUOTE(ic no 851025071234 @ Dec 2 2016, 12:56 PM)
Thanks for the good explanation. So if I have enough capital I should go for reit right? I have read dividend magic blog that's why a bit confuse with the dividend share thing.
I thought share is like buy low and sell high thing where the gain is based on your ability to spot low and high in market. Buy after read the dividend it seems same as UT then no point buying UT if have the money to invest. I can buy long term holding share. Correct me if I'm wrong cos still learn.
Distribution in Unit Trust sense is really no point. Because it's using your money to pay back to you.
Dividend in a share is not the same.
QUOTE(Ramjade @ Dec 2 2016, 12:14 PM)
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Share
- High cost to buy (need to min RM8k)
- Need to monitor unless you are buying REITS (which require less monitoring). Or you can look at Dividend Magic site which focus on getting divdend
- Low charges (if min purchase is RM9k ~ 0.25%)
- Limited to Malaysian market (unless you choose to buy overseas shares which will need higher amount to offset the charges - alternatively can open foreign account with those broker which can lower down your charges)
UT
- Low cost (usually need RM1k only) and to topup need min RM100
- High service charge (2% if buy from FSM MY)
- No need monitor so frequentsly
- You can force the fund maanager to buy the shares of your liking.
- Able to invest in other country (UT is a basket of shares which invest in different region)
1) There's a misconception of high cost of entry. Note in theory, one can start as low as possible as long he can buy 100 shares. of course, due to transaction cost, to be practical, one should start with a few hundred at least. so no such thing as RM8k minimum charge
2) Of course need to monitor, but some school of though is that, if you make the right decision, the monitoring should be relatively less frequent.
3) 0.25% also not correct. Depending on the account type, brokerage fee is ranging from 0.1% to 0.42%. The norm is 0.42% with certain minimum amount. Most cash type account is 0.1% afaik