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 UT or share?

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SUSic no 851025071234
post Dec 2 2016, 10:52 AM, updated 8y ago

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Hi guys. I have been a long FD saver through my life and want to start earning more money through my savings.

I had public mutual UT before without actually knowing what it is and held for 7-8 years before selling it.

Can help me by sharing what the difference between UT and share market? I am long term investor as I have low knowledge and don't have time to monitor the market everyday.

I heard there are share that give high dividends? In the end isn't it same as UT?
alna1988
post Dec 2 2016, 11:57 AM

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Bro,

i identify your risk appetite first.

UT and shares have different risk.

UT also got many fund house and funds, wrongly choose = you are toasted.

My benchmark for UT is > ASB 7%

Some funds(UT) give up to 10-13% annualy (CAGR for 5 years)

and for shares you want to buy blue chip stock like TM TNB CIMB MAYBANK?

Need a Fundamental Analysis before invest.
alna1988
post Dec 2 2016, 12:00 PM

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even UT give Div, but in UT did't call Div. We call Income distribution. the % is very low because invest in UT we only focus on capital appreciation.

Same goes to shares. please look on TNB shares in 6 years, how many increment? you will surprise bro
Ramjade
post Dec 2 2016, 12:14 PM

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QUOTE(ic no 851025071234 @ Dec 2 2016, 10:52 AM)
Hi guys. I have been a long FD saver through my life and want to start earning more money through my savings.

I had public mutual UT before without actually knowing what it is and held for 7-8 years before selling it.

Can help me by sharing what the difference between UT and share market? I am long term investor as I have low knowledge and don't have time to monitor the market everyday.

I heard there are share that give high dividends? In the end isn't it same as UT?
*
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)
SUSic no 851025071234
post Dec 2 2016, 12:56 PM

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QUOTE(Ramjade @ Dec 2 2016, 12:14 PM)
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)
*
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.
Ramjade
post Dec 2 2016, 01:07 PM

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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.
*
The question you need to ask yourself,
- buying low is one startegy and is true for those who are doing trading. However it's also true for dividend based (checked out Gen-X blog about how he invested initially).
- Do you want to have access to other market like SG, USA, etc or you want to stick to malaysia only?

For me, I choose UT because
- I don't have skills to spot buy low, sell high
- No time for monitoring
- I want access to other market other than Malaysia.

SUSic no 851025071234
post Dec 2 2016, 01:09 PM

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QUOTE(Ramjade @ Dec 2 2016, 01:07 PM)
The question you need to ask yourself,
- buying low is one startegy and is true for those who are doing trading. However it's also true for dividend based (checked out Gen-X blog about how he invested initially).
-  Do you want to have access to other market like SG, USA, etc or you want to stick to malaysia only?

For me, I choose UT because
- I don't have skills to spot buy low, sell high
- No time for monitoring
- I want access to other market other than Malaysia.
*
I also have thinking like u that's why confuse if I should go for stocks after read dividend magic blog.

If for the reason u choose UT then Isn't buying reit have same advantage but lower sales charge and higher yield?
Ramjade
post Dec 2 2016, 01:44 PM

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QUOTE(ic no 851025071234 @ Dec 2 2016, 01:09 PM)
I also have thinking like u that's why confuse if I should go for stocks after read dividend magic blog.

If for the reason u choose UT then Isn't buying reit have same advantage but lower sales charge and higher yield?
*
The two main reason I choose UT over share
- Overseas exposure. I already have my amanah saham to cover my malaysia part.
- Lower cost for me to start

There are also REITS in UT. One of the most popular one: AmAsia Pacific REITS. It invest in REITS in Asia Pacific and not focus only on Malaysia.
SUSic no 851025071234
post Dec 2 2016, 01:47 PM

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QUOTE(Ramjade @ Dec 2 2016, 01:44 PM)
The two main reason I choose UT over share
- Overseas exposure. I already have my amanah saham to cover my malaysia part.
- Lower cost for me to start

There are also REITS in UT. One of the most popular one: AmAsia Pacific REITS. It invest in REITS in Asia Pacific and not focus only on Malaysia.
*
Ya I know. It seems both are similar but take into account sales charges wouldn't u have gain with reits? As it is 0.25% for buy stock compare UT 5%
adele123
post Dec 2 2016, 02:00 PM

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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)
» Click to show Spoiler - click again to hide... «

*
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

Ramjade
post Dec 2 2016, 02:02 PM

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QUOTE(ic no 851025071234 @ Dec 2 2016, 01:47 PM)
Ya I know. It seems both are similar but take into account sales charges wouldn't u have gain with reits? As it is 0.25% for buy stock compare UT 5%
*
That's true. You will gain with stocks but again like I said the cost to buy one share is high min RM8k (to offset the charge) Actually UT charge is only 2% if you buy from FSM MY. Also, by investing in REITS from KLSE, you are only limited to Malaysian market.

There's a way to save cost. But SG UT (they have wider selection of REITS funds) with only SC of 0.7%. That's one of the main reason I am abandoning malaysia UT for SG UT. Save cost.

Tip: SG REITS is also another good one to look into. Again you will need lots of money to buy if you are buying SG REITS without a local broker there. Reason banks in Malaysia charge quite high for buying foreign shares.

SUSic no 851025071234
post Dec 2 2016, 02:15 PM

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QUOTE(adele123 @ Dec 2 2016, 02:00 PM)
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.
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
*
The part where u mentioned using your money to pay back to u is reinvestment like compound interest so I don't see disadvantage in that. Just a newbie question if share dividend means they pay you back in cash? So example u buy 100 lot and get dividend it is go your bank account not increase lot you have right?

QUOTE(Ramjade @ Dec 2 2016, 02:02 PM)
That's true. You will gain with stocks but again like I said the cost to buy one share is high min RM8k (to offset the charge) Actually UT charge is only 2% if you buy from FSM MY. Also, by investing in REITS from KLSE, you are only limited to Malaysian market.

There's a way to save cost. But SG UT (they have wider selection of REITS funds) with only SC of 0.7%. That's one of the main reason I am abandoning malaysia UT for SG UT. Save cost.

Tip: SG REITS is also another good one to look into. Again you will need lots of money to buy if you are buying SG REITS without a local broker there. Reason banks in Malaysia charge quite high for buying foreign shares.
*
Thanks. I wil look up more on FSM cos I only familiar with bank. Not sure the risk using FSM or need technical analysis to use that platform.

cherroy
post Dec 2 2016, 02:45 PM

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Join and post in the fund thread, if wish to know more about UT.
Ty

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