If you bother to read, the author did not use the two day drops as any indicator.

I have been wanting to reply to your "famous" theory of  stock prices will always be up, given long enough time. So I shall mentuon it here :-

I see that people are using the fact that a fund price will go up given long enough time as something useful.

For me that is not a useful piece of information. I can't decide to invest in a fund just based on that.

Ok say you are willing to wait that long, 10 years for example. Still there is a difference between fund A vs fund B after 10 years. Fund A may get 50% ROI, fund B may get 5% ROI.

Furthermore, everyone's time is limited. Not always one is willing to wait 10 years to find out fund X's performance. After all, past 10 years of performance is not even going to allow you to predict for sure the next year's performance.

Often we analyse, we risk, we make guesses, predictions etc etc. So investment is about using whatever means at your disposal to obtain the optimal ROI within shortest time. Not many people will feel achievement for getting 5% ROI on fund X after 10 years.

So the fact that funds prices will eventually go up after long enough time is nothing useful.

People like to think they have some measure of control over how things turn out, don't they? to me "using whatever means at your disposal to obtain the optimal ROI within shortest time" is called gambling   that's exactly what gambling is, people trying to achieve a high ROI in the short term. I'm guilty of that, chasing profit I'm trying to find a way to stop it. It's very misleading, you're pretty much just wasting time and probably making things worse.

Fund A may get 50%, and fund B may get 5%.. but we don't know for sure, so we pretend to know by saying this will happen because A and because B.. but in the end we still don't know nothing has changed even after all this time we wasted. It makes us feel that we are more in control, that we know something. In the end if we still get 5%.. we can say we tried or something.

But your post has given me some insight, some people invest to feel some sort of achievement. It's like they feel they have done something, when they analyze and make guesses and predictions. We look at the short term and we curve fit, find reasons for it. We jump from one fund to another, chasing profit and ignoring losses. People want to be right more than they want to make money.

What is this need to feel that we are right, that we know the future or can tell the future by looking at the past or the present? We all know that if we are well-diversified and keep investing, we'll do well in the long term.

But why is that so hard to do? we always want to play with it, to chase the next big thing. We can't determine whether the funds we invest in will net us 5% or 50%, so why do we try? why don't we just diversify and keep investing and sit quietly for ten years? who doesn't have ten years? I think everyone has ten years. Why should it matter so much whether we have 5% ROI or 50% ROI? we are all kiasu...

Why should we even decide? I mean look at FSM's portfolio, they rarely touch the thing. And they are doing OK. The danger with playing with it is that the numbers lie. If you keep cutting your losses, it will look like you are making more profit but then you don't realize your capital is shrinking.

The problem even with active management within peers is that you end up paying 2% a lot, because peers are pretty much always in different fund houses why not just dump it in a global fund and be done with it?

I've a good mind to just follow FSM's portfolio.. and be done with it. Is all this "using whatever means at your disposal to obtain the optimal ROI within shortest time" effective or worth the effort, or is it just providing you with a false sense of security and control, while losing you money in the long term?

But how do you know that?
Try to forecast the weather. Try to make it rain, or stop raining. People forecast sunny weather but they still carry umbrellas.

forecasting weather to investing is the same when you have technologies to provide you up to date information and you are right we prepare an umbrella base on those info . we have better information streaming as compared to our forefathers so we have the luxury to be educated before investing.

but arguing to stop it and to make it rain is like trying to get china to start a trade war. that argument is invalid on your part.



So why are we not following the advice of the people we are paying?

take for example fsm malaysia saying trump and hillary does  it matter? it certainly did.

https://secure.fundsupermart.com/main/artic...1-Oct-16--11993

and another in which I asked fsm do I still invest in Malaysia bond and they gave a fence sitting answer while foreign investors are pulling out. so do I follow fsm or Bloomberg?

But if gold were to make another new high in the next ten years she would have not lost money, and in fact made a bigger lot.. and how would anyone know if it won't? what if she kept a little in gold, a little in others.. so if that happened, she would have not lost the capital?

If you lose money, you shift, you lose money, you shift.. eventually you will run out of money right? because every investment has downturns.

aren't we talking about passive management vs active management as you were saying it's better to just put the money in and be done with it? personally if I spend 5 years investing in a fund and eventho it gave me a profit of 8% I would have seen it as a failure.

just the last part. how much were u targetting in terms of return? you look at 8% as failure so i got to know what you are going for.

Sorry I don't agree. Service charge is an important part. If service charge not important, how come some people want to do ninja credit trick? A little bit adds up over time. It may not seems like much now but try compounding it over 10 years and you see what I am talking about.

I already prove why service charge/platform fees is important (in FSM SG thread)

If service charge not important, be my guest and buy from banks/agents. After all what's 3% saving right?

Hi Sifus,

Since I am still new to UT investment, apologize for my noob question.

How can we make profit from long term investment in UT? Let say 7 years investment. I.e. I bought a fund Rm 2k and at the end of 7 years investment it becomes 3k, which is 50% increment from my initial investment. When I sell only I make money right, which means I've received 50%/ 7 = about 7% annually profit right?

Or, during my 7 years holding, I will receive annual divident from my funds?

Or is it better If I wait untill my fund increase more than several percentage i.e. 5% and straight away sell to gain profit before it drops? For this method, the sooner I sell back the fund the better? i.e I bought fund A at feb 2016 and it rise 5% on june 2016 which I straight away sell. Then the fund go down and back up to 5% a year later on june 2017. Which means I've made profit earlier and could have invested in other funds from the period june 16 - june 17?

Is my understanding correct?

I am also new to fsm. Will need to do lots of reading. But for now , any idea which fund I can invest rm10k into?

Thanks for the info. Does it make a difference if I invest now or invest after new year's?

Evaluate yr tax relief benefits....if very worth it....starts with that next week.....2016 ending soon. Head on to prs thread to read my last posting there...

applicable effective yr 2017

Or you can follow FSMs portfolios.

more .....
Will 2017 be a good year for businesses?
http://www.thestar.com.my/business/busines...for-businesses/

"With so much uncertainty, peering into the crystal ball will be a useless exercise. But I can certainly predict a tough survival journey for the man in the street as high inflation kicks in. Young entrepreneurs who have not experienced the currency crisis back in 97/98 will certainly get a rude awakening when the ringgit hits 5. You are advised to standby a first aid survival kit, run for cover and keep yourself lean and fit for a journey that will be rocky and strewn with danger at all junctions and corners."

CMF (35%) is what?

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!

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?
 

:thumbsup:
  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 is what the CEO of Federation of Investment Managers Malaysia (FIMM) Encik Nazaruddin Othman said about this,
http://themalaysianreserve.com/new/story/n...trust-says-fimm

PRS is a bit weird.. they only have one fund and you can't take it out until you retire, and they charge you every year? might as well put it in EPF, it is free.

May I understand this? What is the purpose of CMF and what is "ammo"?

(PS: I assume it is to have liquid cash to swoop in and buy stocks or funds when the market crashes?)

If we are talking major downtown times, 1998 was one. Also Sept 2011, when the towers were hit. If you look at pretty much all the other UTs around that time, you will see that they all dropped pretty much at the same time.

So with you spare ammo you are looking to buy stocks directly, or unit trust funds? Also I assume you mean September 2001...

Noob question: What do you guys think about funds that don't charge a fixed annual mgmt fee, but imposes a profit sharing on the profit? E.g. RHB Islam bond fund which charges 15% of the profit. Can this alternate fee mechanism circumvent the unjust situation of manager profiting from non-performance? Thanks

So you guys are saying that getting back your money in 4-7 days is considered "liquid"? I thought liquid meant almost instantly.

Also, to confirm my understanding, look at this scenario: At 1pm Monday you place a sell on your unit trust fund. That means, you sell transaction will be conducted using Monday's price right (which is usually only displayed on Tuesday/Wednesday)? So even if you get the money the next Monday, it still conducts the transaction using the Monday price correct?