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

Maybe not all bond funds on FSM MY have platform fees. FSM MY doesn't list any platform fee for RHB Islamic bond

Low-risk bond funds like AH Select Bond (blue trace) and RHB Islamic Bond (orange trace) were resilient during the 2009 recession. If past performance counts, then your investment is unlikely to vaporize.

This post has been edited by biastee: Jan 28 2017, 10:44 AM

Performances aside, RHB IBoF is cheaper to purchase than AH SBoF on the platform that I use (CIMB Clicks); i.e. 0% s/c vs. 1.5% s/c. I also like the former's 0% annual management fee and 85:15 profit sharing ratio bcos they are more consistent with Nassim Taleb's principle #4 for preventing a black swan ("No incentive without disincentive"). Now I gotta run for cover before the doc flames me for penny-pinching... :-)

This post has been edited by biastee: Jan 28 2017, 11:53 AM

Allow me to guess why some people stick to cimbclicks despite FSM's benefits. Those whose salaries are paid into CIMB, may find it more convenient to do regular/periodic top-ups into the funds within cimbclicks, especially when both saving account & unit trusts are on one web page and using one login. There is no need to transfer the money to an external platform. Also no need to apply for an account with FSM / eUT. Moreover the money invested in unit trusts also adds to one's asset-under-management in CIMB which may earn priority banking status and hence preferential FD rates (currently 0.9% higher than board rate for 3 month FD).

However, there is no question that FSM is superior to cimbclicks for comparing fund performances and other research.

Not true. DIY oso can. :-) Of course, those forumers who frequently mention Selina, and Jennifer, etc will probably use their RMs for every transaction.

This post has been edited by biastee: Feb 3 2017, 08:28 AM

Got promo s/c infrequently, e.g. 1.5% vs. standard 2.5%. :-) But the doc says not to miserly over the s/c when @Ramjade praised EUT's 0% s/c promo.

This post has been edited by biastee: Feb 3 2017, 09:29 AM

Although one cynical forummer may sneer, the RM is not without his/her merit. If you are punting a substantial amount, you may want to ask the RM if the selected fund qualifies for a discounted s/c. For promoted funds, the RM may also allow u to prematurely withdraw an FD without losing interest.

In a financial crisis, there's no need to completely cash out from cimbclicks because you can also park the cash in its FD.

Hear, hear!

:-) @Xuzen is a man after my own heart!

Every platform has its strength and weakness. Hence, there is no one size that fits all when it comes to selecting a platform. While cimbclicks does not have the widest range of UTs, it has a wider array of investment products than either FSM or eUT; i.e. FD, UT, ASx, retail bonds, structured notes and gold, etc. For the time strapped, all are conveniently accessible via one login and without needing to transfer funds. Another compelling reason to keep all the eggs (read: investments) in one basket (read: platform) like cimbclicks is that one's total fortune is automatically calculated in the monthly statement.

This post has been edited by biastee: Feb 3 2017, 11:02 PM

Instead of cashing out, how about switching to a bond fund within the same fund house because this may save the sales charge when you switch back to equity after the recession? Some bond funds like AH SBF and RHB Islam Bond were resilient during the 2008-2009 recession.

You can access the Dec 2016 issue of Philip allocator by clicking on the "MORE" button under the "Our Monthly Funds Review" tab:
https://www.eunittrust.com.my/pdf/fundview/...tor_Dec2016.pdf

The "80% cash" recommendation is repeated again in the Jan 2017 issue.
https://www.eunittrust.com.my/pdf/fundview/...tor_Jan2017.pdf