Guys, if say one wants to join FSM, it is best to research and decide all the funds you want before hand, and subscribe it at one go when you open the account to take advantage of the 1% promo charge? Also, is this 1% only available for few days after you open the account?

Franky gave me RM 1,000 to buy into stock market. In exchange I gave him 1,000 units. After one year, that sum grew to RM 1,100.00. His NAV will become RM 1,100 divided by 1,000 units equals RM 1.10 per unit.

I decide to distribute RM 150.00 back to him. RM 1,100 less 150 equals RM 950.00. Hence his latest NAV is now RM 0.95 per unit after receiving that RM 150.00.

But he gave me back that RM 150.00 and Franky told me to reinvest that amount into that same fund.

Hence I use that RM 150.00 and convert it back into units at MYR 150.00 divided by 0.95 (NAV) equals = 157.89 units.

Now, Franky has 1,000 units from his original investment plus another new 157.89 units; his new total units equals to 1,157.89 units.

This 1,157.89 units multiply with RM 0.95 NAV equals RM 1,100.00 in total.

So Franky realised that before distribution, his total unit trust is valued at RM 1,100.00 and total units held is 1,000 units.

After distribution, his total unit trust value is also valued at RM 1,100.00 and total units held has become 1,157.89 units.

To put it plainly, even his units has increased which gives him a "shiok sendiri" feeling.... his total value is still the same before and after distribution. Hence Franky should realise by now distribution does Jack Sh1t.

Xuzen

contestchris had to pull Xuzen post from public mutual.

Yes I 100% understand that concept for unit trust funds. This was explained a few days ago and I totally agree with it. I observed the dividends for many funds and it is true, which makes me angry at Amanah Saham and Public Mutual when they gloat about dividends when the true fact is there's is a net negative return for the year.

But my question was more about the share market. Is it the same there as well? Or are dividends in the share market distinct in nature compared to that of unit trust funds? Would it be wise to say that the closest thing in the share market to the dividend nature of unit trusts is the stock split scenario? Since in both scenarios, the before/after value of your holdings is pretty much he exact same.

Yes I 100% understand that concept for unit trust funds. This was explained a few days ago and I totally agree with it. I observed the dividends for many funds and it is true, which makes me angry at Amanah Saham and Public Mutual when they gloat about dividends when the true fact is there's is a net negative return for the year.

But my question was more about the share market. Is it the same there as well? Or are dividends in the share market distinct in nature compared to that of unit trust funds? Would it be wise to say that the closest thing in the share market to the dividend nature of unit trusts is the stock split scenario? Since in both scenarios, the before/after value of your holdings is pretty much he exact same.

Specially for those a little thick in the skull:

Dividend from stocks are specifically from profits. Anything else are called capital repayment.

Dsitribution don't give a Jack Sh1t, it can come from profit / surplus or from pool of capital. Hence it is called distribution and not dividend.

Can some bean counter verify this? Hint hint to auntie dasecret. 

Yes I 100% understand that concept for unit trust funds. This was explained a few days ago and I totally agree with it. I observed the dividends for many funds and it is true, which makes me angry at Amanah Saham and Public Mutual when they gloat about dividends when the true fact is there's is a net negative return for the year.

So if say Stock A declare dividend, will the price of the stock also drop? Is it like in UT?

So if say Stock A declare dividend, will the price of the stock also drop? Is it like in UT?

They have nothing to shout about, so shout about distribution lor!


Why you ask stock market related question at Unit Trust Fund thread ar?

Because I understand how UT works already (thanks to you guys!) but am still figuring out how the stock market works. So I thought maybe some folks here can tie the two together and give a well rounded answer as to how dividends differ for UTs and shares. In my mind they are different but I wanted to confirm the fact.

I also wanted to confirm my thinking that a stock split functions in a similar way to the Unit Trust dividend methodology (that gets reinvested of course) - meaning, in both cases your total shares/units increase, but their individual unit price decreases...leading to a total net zero returns pre/post dividend/split respectively.

Because I understand how UT works already (thanks to you guys!) but am still figuring out how the stock market works. So I thought maybe some folks here can tie the two together and give a well rounded answer as to how dividends differ for UTs and shares. In my mind they are different but I wanted to confirm the fact.

I also wanted to confirm my thinking that a stock split functions in a similar way to the Unit Trust dividend methodology (that gets reinvested of course) - meaning, in both cases your total shares/units increase, but their individual unit price decreases...leading to a total net zero returns pre/post dividend/split respectively.

Just some questions here, I am actually looking into a fixed income funds that could provide me around 6% annual return. But upon clicking the recommended fund list, "RHB Emerging Markets Bond Fund" seems to have a nice chart that provides an average 10% PA with a balanced risk rating of 5.

While "RHB Asian Income Fund" provides a 7.93% projected annual return at a risk rating of 6.

Does that means taking "RHB Emerging Markets Bond Fund" is a better choice since it has lower risk with better returns? And they don't seems to implement any sales charge for it as well.

Just some questions here, I am actually looking into a fixed income funds that could provide me around 6% annual return. But upon clicking the recommended fund list, "RHB Emerging Markets Bond Fund" seems to have a nice chart that provides an average 10% PA with a balanced risk rating of 5.

While "RHB Asian Income Fund" provides a 7.93% projected annual return at a risk rating of 6.

Does that means taking "RHB Emerging Markets Bond Fund" is a better choice since it has lower risk with better returns? And they don't seems to implement any sales charge for it as well.

fixed income funds dont have service charge bro

also note that this fixed income fund has a switching fee of 25 myr regardless if you switched to another bond fund.

I see. Since it is fixed income funds, low risk with high return, so your suggestion is that placing in RHB Emerging Markets Bond Fund would be a good idea? Or is there anything else I have to be cautious about?

I've seen funds with a 7-9point risk that provides similar projected return rate for it. So why would people wanted to invest in these high risk funds since there are so many other better options?

but it has a 12.68% higher 3yrs volatility %  than RHB AIF...

btw,
one is a balanced fund where else the other is a FI fund &

Investment involves risk. The price of securities may go down as well as up, and under certain circumstances an investor may sustain a total or substantial loss of investment. Past performance is not necessarily indicative of the future or likely performance of the fund. Investors should read the relevant fund's prospectus for details before making any investment decision. An Investor should make an appraisal of the risks involved in investing in these products and should consult their own independent and professional advisors, to ensure that any decision made is suitable with regards to their circumstances and financial position.

just a note: these 2 funds "gains" may have been amplified by the weaken RM.....

But considering it to be under the fixed income category with a balanced risk rating, it is recommended to place on it? Or any suggestion? Since my other option is just place it into FD.