I don't have a USA fund, was looking at the RHB US Equity Focus Fund but decided to get the European one instead. All of them are equities except the RHB Asian Income Fund which is a balanced fund since I am relatively young and fully understand the concept of risk. But at the same time I just want to be prepared, that should the market take a turn for the worst (be it Malaysian market, or region-specific, or global), I want to be able to switch these funds to Bond or Money Market funds.

But I have seen some equity funds performance in 2007-08, they lost half the value! True enough, they gain it back rather quickly...but imagine this scenario.

Re-recession NAV: RM1.50

Recession low point NAV: RM0.75

If you managed to sell at RM1.50 and buy back at RM0.75, you get almost TWICE the units, and then from RM0.75 they will double in value to RM1.50 back again.

Of course you cannot time it to perfection or predict all funds to be like this, but I think there is a potential to make gains. Or maybe this is not how things work?