It matters.

Because the underlying asset is in foreign currency denomination, meaning foreign exchange risk.

The boost is mainly due to weakening MYR, that leads to the performance boost.

If the MYR strengthen, the performance will soar down.

That is the thing you need to take note.

Even though the underlying asset may not perform well, currency depreciation may boast the performance and vice versa.

One way to check is to compared it against other currency class of the fund (e.g. USD class)

This post has been edited by AIYH: Jan 2 2017, 05:28 PM

FD returns may be safe but you are sacrificing returns for it with FD having abysmal 4% returns which sucks.

currently i have Affin hwang select bond fund for its geographical allocation and "low" risk as compared to your emerging market.

also if you don't like either both, you can try going into Libra Anita bond fund which has an allocation in Malaysia.

you are placing in MYR, and this MYR will be converted to the currency of the target funds.....
the reverse can also happens to the MYR, thus there is a risk of negatives returns since to some analyses, MYR is now too undervalued...

so you suggesting we don't buy now until our currency improves?

buy with the money that you can afford to lose....
you need to diversify, just diversify in the % that you can afford to lose "if" RM happens to recovers

This post has been edited by MUM: Jan 2 2017, 05:37 PM

which means it's better to buy Malaysian bonds and EQ at this juncture? when it recovers both the currency and the fund would greatly improve like a domino effect?

diversify,
reduce the currency risks is one

I've just withdrawn from Affin hwang select bond last 2 weeks which is managed under Citibank cuz the chart doesn't look promising as of December 2016, as I'm not very good in analyzing if it is a good fund or not. And another thing is because my relationship manager has resigned which leaves me on my own now.

So i'm just thinking which fund I should allocate in besides FD.

forget the rest first. move everything from citibank and open your fsm account. stop going through RMs and agents. read through how fsm works and how you can diy.

also tell us your risk appetite and what these funds you have now mean to you? are these emergency funds? are you able to stomach that these funds will be at a lost?

I just opened up a fsm account for my girlfriend and plan to place 50% in Affin hwang bond fund and 50% rhb AIF as her balanced portfolio

This post has been edited by Avangelice: Jan 2 2017, 05:42 PM

Asides from currency and the risk rating, how would I judge if it is a good fund or not? Since everything is being managed by the fund manager. Reputation?

Yup I just submitted my registration application for FSM and maybe test it out a little and see how it works. But if I'm not wrong, fundsupermart might charge a fee that would be much higher than the bank may offer.

Looking at this example here:
Fundsupermart's Discounted Initial Sales Charge* 0 %
Platform Fee (%)* 0.05% per quarter
Annual Management Charge* 1.5 %
Trustee Fee* 0.08% p.a of NAV
Other Significant Fees* Switching Fee: RM 25.00
Annual Expense Ratio ^ 1.68% (as of February 10, 2016)

Fundsupermart might charge an annual management charge of 1.68%. But let's say I put in Citibank, they only charge me a one time 2% charge and a relationship manager will be appointed to me, where I could always gets updates from them time to time.

Is my calculation correct based on this example?

try the FSM recommended funds...they are "filtered"....
but read this 1st before selecting from the recommended funds....
https://www.fundsupermart.com.my/main/resea...ober-2013--3983

and how much is the agent commision with citibank bro as every agent or service personnel ain't free. how did you come about the deduction that the Affin hwang select bond fund has a bad return? also what is your definition of a "good" return for a fund?

also for updates what updates do you get from your RM? as far as I know I got all the updates from fsm.

for me I don't like giving away money to someone who I hardly talk to. that includes insurance agents.

Yup was looking into the recommended funds as well. Maybe I should try placing a little into it for a few months and see how it goes before deciding further.

wrong,
FSM will charged the Sales charges for EQ/balanced funds
FSM will charge you platform fees for FI funds
then the rest of the charges are charged by the fund house and these had been reflected in the daily NAVs, which you cannot see

btw, buying from Citibank or any other will also incur these charges

Sorry, but who are you to declare yourself old or decide what is worth calculating or not worth calculating

Surprisingly, for citibank they doesn't charge an agent fee. It's only a one time fee of 2%. The same as my recent funds placement through Great Eastern.

I'm only looking at the technical indicator of the chart. Because it just look stagnant, which would suggest to a drop later on which I define it as bad.

The updates I get from my RM is a summarized version of a good or bad stock(straightforward). Either if it would be a good time to withdraw, placing more funds or perform a switching. Based on information they gotten from their bank and news they have read about. So far the indicators my former RM provided me is reliable.

That's weird because Citibank didn't charge me for that, referring to the annual management charge. Although I did ask them about this before placing in it 1 year back.

And for Great Eastern I'm still waiting for the policy, as I'm also told the same as well that only a one-time fee of 2% will be charged for lifetime.

But a downside is that the bank will charge another 2% for switching funds, while FSM doesn't have that if it is managed by the same fund company.

Will research more about it.

One way to assess is to compare the fund with its peer within the same league, for example affin hwang select bond fund is a fixed income fund invest in diverse sectors within asia ex japan region, compared some funds in the same league

Also, if you have some financial knowledge, you can also read their fund fact sheet or annual report to see what they invest into, and with some financial news, along with the performance peer comparison, you can understand why such such fund is performing or declining as a lot of factors comes into play to determine a fund's worthy

(0) fund house is the party that managed the fund (i.e. Affin hwang select bond fund is managed by Affin hwang)
(1) Annual management charge is the charges charged by the fund house for mannaging the fund
(2) Trustee fee is the charges that charged for trustee institution to protect the fund money
(3) Switching Fee is the charges charged by fund house if you decide to switch between funds
(4) Annual expense ratio is the ratio that shows how much is the expense cost as compared to the fund value (overall value, not part of the individual charges)

(1) & (2) are according to the fund and was reflected in the daily NAV value, so regardless of the platform or agents (citibank, maybank, fsm, eUT etc....), these are the implicit charges in the fund you invest

(3) only incurred when you switch to different funds.

Platform fee is the charges charged by FSM for fixed income funds. (this is different to sales charge)

The difference between citibank or bank agents or fund house agents and FSM is that the bank agents charged at normal sales charge (usually) due to human processing need

Whereas FSM, the platform is online, you can deal your investment there, so the sales charge are usually low or 0% (for fixed income fund)

p/s: the expense part is also one of the criteria you can assess when choosing a fund (i.e. if several funds perform similarly, lower expense cost signify efficient investment fund) (at least thats what i think )

if they did not charge you than it will be weird....
did Citibank send you any prospectus or fund factsheet?
those charges are stated in there.