Correction.

P/s Tambah nilai lagi for Selina's (AM Asia - Pacific include Japan REITs Fund) and Manulife US Equity Growth Fund.


This post has been edited by xuzen: Dec 24 2016, 11:15 AM

CMF (35%) is what?

cash management fund. he is preparing his ammo

Guys, I was directed to this forum to post Unit Trust related questions (although, I do not currently use FSM and am actually just starting out).

1) In the even of a global recession, is it wise to make use of the switch function, and switch out from equity-based funds to balanced/bond/money_market funds? Because I see that in recession equity based funds can easily lose 33%-50% of their value. There are some that manage to gain a bit, but it's seemingly uncommon.

2) What do you have to say about my initial portfolio composition as below (I invest roughly evenly into all of them)? I'm quite young and ready to take risks, hence these all being equity funds except the RHB Asian Income Fund which is a balanced fund composed of bonds as well. Is the geographical distribution considered diversified in particular? I also made sure I got these funds from companies that also run balanced/bond funds so that I may switch in the future as and when required. Only the RHB fund charges a switching fee, but it is a balanced fund and I don't intend to switch this unless it gets really bad.

CIMB-PRINCIPAL GLOBAL TITANS FUND
TA EUROPEAN EQUITY FUND
CIMB-PRINCIPAL GREATER CHINA EQUITY FUND
CIMB-PRINCIPAL ASIA PACIFIC DYNAMIC INCOME FUND
RHB ASIAN INCOME FUND
AFFIN HWANG SELECT ASIA (EX JAPAN) OPPORTUNITY FUND
EASTSPRING INVESTMENTS SMALL-CAP FUND
KENANGA GROWTH FUND

Thanks!

This post has been edited by contestchris: Dec 25 2016, 01:33 AM

so how is your analysis of the portfolio?
made any changes to your portfolio since the last post in
Is this a diversified Unit trust portfolio?
https://forum.lowyat.net/topic/4157342/+0#entry83100027

Welcome to fsm brother! don't worry if you aren't using the platform. we don't discriminate against anyone be it Phillips or bank platform users. it's the portfolio that counts.

so far I love your portfolio and you understand the basics of having a diversified approach in investing unit trusts. about being all EQ yes you are having a fairly aggressive portfolio which is a good thing as some analysts have pushed for full EQ ports

if I have the same one....
CIMB-PRINCIPAL GLOBAL TITANS FUND
TA EUROPEAN EQUITY FUND
CIMB-PRINCIPAL GREATER CHINA EQUITY FUND
CIMB-PRINCIPAL ASIA PACIFIC DYNAMIC INCOME FUND
RHB ASIAN INCOME FUND
AFFIN HWANG SELECT ASIA (EX JAPAN) OPPORTUNITY FUND
EASTSPRING INVESTMENTS SMALL-CAP FUND
KENANGA GROWTH FUND

the last one is at 93% while the rest is at 1% each....
still in love with my portfolio and glad that i understood the basics of having a diversified approach in investing unit trusts?

ah hah. trick question and I'm not taking the bait buddy! I should have said I love your portfolio based on the funds listed but if you place 95% in Malaysian EQ then hats off and gg to you. lol.

Merry Christmas

Are you able to address my other question? Namely, in the event of a global recession, is it wise to make use of the switch function, and switch out from equity-based funds to balanced/bond/money_market funds? Because I see that in recession equity based funds can easily lose 33%-50% of their value. Or is it the norm that even in a recession we should not touch (switch or sell) our unit trust funds?

This post has been edited by contestchris: Dec 25 2016, 02:24 AM

Merry Christmas to you too brother. have a wonderful weekend ahead and a good night

it depends on the person's character and aptitude in dealing with a recession. I will list down how a few of us deal with a downward trend say malaysia for example. if one of the groups calls to you then proceed to follow their methods.

1) passive investors
they will invest their funds and don't look at them for years. a frequent top up or two within a year but nothing phases them as they believe all the loud noises like global recession is just temporary and all that would just be a little speck on the chart.
adele123 and a few are avid supporters of passive investment.


2) active management investors
they don't like wasting time placing their funds in a fund that doesn't do well in the next 6 months. example malaysia small cap and bonds. they aren't expected to do good anytime soon as there is no injection apart from the elections in the horizon so a switch buy is conducted within the same house or they switch it do a lower tier fund to lock profits.
these are the guys who jump from one horse to another and maybe in a few years come back on the same horse abandoned a year ago after it has recovered. I sit in these groups.

3) the buy low sell high investors.
they gather their ammo before a recession and these are the people who wish for things to drop like a bad economy or trump winning. these are the guys who expect the economy to plummet and they pick up the scraps and know that their investments will improve. think of them as the stock traders in unit trusts.

so which of these groups that struck a nerve? if it does welcome to the group.

I mean I'm just starting out. But I don't seem to fit to any of the three. I definitely do not want to be totally passive. As I mentioned earlier, at the very least I want to make changes during a recession (switch out or sell when things are about to get worse, switch back or buy when things are starting to get better). Sure you can be totally passive cause after a recession the market will usually quickly recover to its per-recession high, but by taking some corrective measures I believe you could make a handy profit.

At the same time I do not plan to actively manage. A lot of what I am buying is just overall sectors equities. Unless, in the future if I decide to get some Brazillian equities for example, then yeah I will need to keep pace with the Brazillian market news and switch out when required cause Brazil can be volatile. Over time I guess once I get to know the market trends better I will do some switching in and out for the funds I have, but still I won't call it "actively managed".

Guys, another thing I want to ask about is, how come some of the funds appear to be using another fund as their basis?

Like the TA Global Technology Fund uses Henderson Horizon, and a number of RHB/CIMB regional/global funds use Shroder and Principal Global. So what's the purpose of these funds if they are effectively just using another fund? The only regional fund I can see that handles its own portfolio is the CIMB Asia Pacific Dynamic Income Fund.

Would like some explanation regarding this. Maybe I am misunderstanding it and the likes of RHB and CIMB still do play an active role in managing the funds even if they are using Shroder or Henderson Horizon or something else.

If you noticed, most of these funds are investing in foreign areas such as debeloped market or emerging markets far far away

Probably they didn't have the expertise to self manage such funds but they wish to bring in such investment opportunities to local investors (assumed this kindness )

There are difference between single feeder fund and fund of funds, which you can refer to xuzen as below:

Really? Even bonds and money market funds? Surely at least they lose less, no?

income from i-Fast should be filled in to lhdn?
base on dividend or split income?

no need already...for they had been tax before distributing to you.

They tax from our account? using our name or under their company?
uhmm need to check back account receipt.

The recent trump massacre shows that even bond are not spared.