Guys, I want to know one thing. Is the concept of dividends similar for Unit Trusts and Stocks? Or are they different? Like we know if a UT declare RM0.04 dividend per unit, then the unit price will see a RM0.04 drop due to the dividend being declared. Does it work the same way with shares by any chance?

EDIT: Or is it fairer to equate dividend for UT with stock splits for shares? Cause they both seem to have no bearing on your total net value.

This post has been edited by contestchris: Jan 2 2017, 01:02 PM

Well I'm none the wiser after reading that. Conflicting responses.

Would it be best to equate a UT dividend with a stock split for shares? Cause my understanding tells me those are the two most similar scenarios. Based on my research it is rare for a stock price to drop RM0.03 if a RM0.03 dividend is declared (unlike UT fund, which WILL drop RM0.03). Heck stock prices may even rise after a dividend. Stock dividends are derived from profit, UT dividends...I am not so sure. I don't think they necessarily come from profit.

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.

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.

This post has been edited by contestchris: Jan 2 2017, 02:52 PM

Uh...those are all basic knowledge. I do know it.

Anyway my apologies for complicating matters and asking about stocks here. Won't repeat that error as everyone seems to have lost their minds.

So ETF are bought from Bursa? That so? Since they are "exchange traded"? Or in Malaysia's case, is it a whole different exchange?

Hi man, I also invested in UT after my FD matured. It is the next step up!

Having said that, UT have some inherent risk. If the market crashes, the value of your holdings may see a drastic reduction, unlike FD.

I recommend you to set aside an amount that you DO NOT need, and can afford to lose a bit in the short term (in the worst case scenario).

As such, I suggest, invest RM30k or something like that for a start. Do your research.

What is your risk appetite?
What assets do you want to invest in (equity, bonds, money market, or balanced/mixed)?
What regions (Malaysia, ASEAN, Asia/APAC ex Japan, Global, Japan, Europe, US)?
What sectors (REIT, technology, construction, plantation, metals)?

If that RM30k can be safely set aside without harming your well being, I suggest go for a high risk profile. Take all types of equities, maybe a little bit of bond or mixed allocation funds. The reason is a high risk profile is what will bring you the highest annualized returns over a long period of time (say, like 5 or 10 years). However, in the short term it could cause drastic losses depending on the market situation.

So set aside some money for Round 1. Do your research. Buy the funds. Then keep track of them. Ask yourself...why is this fund doing so well? Why is this fund bad? When you ask those questions, you do more research and get to know markets better.

Then in 3 months or 6 months time, you can put in another RM30k. Then again as you get more comfortable.

Whatever it is, DIVERSIFY your unit trust funds. Even if you wish to focus largely on equities, at least diversify the regions.

This post has been edited by contestchris: Jan 3 2017, 10:45 PM

Eh I also don't think it's logical for a newbie to invest RM160k straight into UTs. Invest a partial amount, gain some experience, then invest the rest once you are more comfortable.

Or is that a wrong idea?

Here is my distribution:

CIMB Asia Pacific Dynamic Income Fund --- 20%
Affin Hwang Select Asia Ex Japan Opportunity Fund --- 6.7%
RHB Asian Income Fund --- 13.3%

CIMB Greater China Fund --- 13.3%

Eastspring Small Cap Fund --- 13.3%
Kenanga Growth Fund --- 6.7%

CIMB Global Titans Fund --- 13.3%

RHB US Focus Equity Fund --- 6.7%
TA European Equity Fund --- 6.7%

I bought these funds on 27th Dec, and effective from that day (a total of 5 trading days, till 3/1/17) the gross portfolio returns are 1.259%. The net portfolio returns are -1.426%. Difference between net and gross returns is that for net returns I take into account my initial cost, for gross returns I look at the portfolio performance itself disregarding the initial cost factor (service charge fees basically).

Now people may criticize that I bought too many funds...maybe. Maybe not. The only redundant fund that overlaps with other funds is the Affin Hwang Fund but I have no choice there since this was bought separately as a "test" on M2U and the rest on CIMB Clicks.

I actually think that my ideal total fund size would be 10 or 12 funds, each serving different regions and/or focus areas.

If somebody is mad enough, put ALL into the RHB US Focus Equity Fund for a 6-month period. I can feel it will get a double-digit near 20% growth in just the first six months. It focuses on small caps and Trump slogan of "buy American, build American" will surely boost the small caps and may actually harm the bluechips from there. Of course, six months is for the sentiment to wear off. After that reality hits, Trump's slogans will just be that likely.

Not sure if I am lucky or not but all the Asian/Malaysian funds were trending down throughout December, hit low point before the Christmas weekend. I bought it on Christmas weekend, and in just 5-6 trading days the gross portfolio returns are almost at 2%. I look at the graphs, and I think my timing was very fortunate.

January 2016 was one of the worst months ever globally since the 2008 crisis, but so far January looks good!

Also I was actually putting much hope into RHB US Focus Equity Fund (small caps focus) but sadly it's the only one with a negative performance in my portfolio. Luckily it only has a 6.7% weight.

2016 only 3 days, no need for me to share. But end of 2017, maybe I will if I am still around here.

Manulife US Equity is large cap fund. I personally thought the Small Cap will grow better this year hence I got the RHB US Focus Equity Fund instead. Also got RM25 switching fee, it deters me from buying into Manulife funds. Though well, RHB has it too...

As for the TA Global Tech fund...yeah I wanted to buy it except CIMB Clicks doesn't carry it for some reason! Also it's a sector based fund, a bit high risk. And Tech stocks seem to be extremely highly priced, you never know if we are close to the ceiling already.

In the future once I can save a lump sum I will open up FSM for Round 2 unit trust funds and reconsider the TA GT fund. Sadly no funds to take advantage of the 0.5% SC promo!

Sir, to ask, if say dividend/distribution is declared on Jan 11 2017, will the dividends be reinvested on that same date? Will your units increase on that day itself? Or this process takes time? I am asking about the actual day of when the reinvestment happens, I am well aware that it takes a few days to show up in your account.

Guys, please man, talk to FSM. We need to get AmAdvantage Brazil fund in there ASAP!!!

Gold Funds seem to be something that require active management? Super volatile, can increase a lot and decrease even more in a short period of time. Seems like timing is the key here. Also seems like a bad choice for a long term passive investment, negative returns over the last 5+ years.

You got the other funds or not? Like Greater China or APAC Dynamic Income?

So lucky you have money to spare, I am pokai now. Imagine if I waited for 0.5% rather than paying 2.5% at CIMB...anyway due to fortunate timing I almost breakeven already in under 2 weeks.

I would be most interested in adding the TA Global Tech fund to my portfolio.

This post has been edited by contestchris: Jan 6 2017, 10:01 PM

Anyway been to their talk before? I signed up for 14th Jan talk, but am not sure if it will be worthwhile going for or not, especially since I cannot capitalize on the 0.5% SC fee. Anyone here going?

Interesting. But between India and Brazil I think Brazil has got so much more room to grow. India is an extremely disorganised country. But lots of potential there for sure.

What are the India funds available? Manulife only right?

Guys, anyone here "actively" manages their funds? Meaning, you switch things around a few times a year for certain funds, especially those for volatile and exposed regions (Brazil, India, Indonesia, Russia, EM Ex Asia etc) or for those volatile and exposed sector based (Tech, REIT, Gold, Mining, Construction, Financials, Small Caps etc)?

Cause to me it looks like if you can time your entry and exit well from these volatile/exposed regions and sectors, you can make a lot of returns in one year.

Anyone can share experience based on these?