Those who buy and sell real estate and the sum can go over to millions and during the interim period of the buy - sell , where is the money placed? With the lawyer client trust account yes? During this phase , does the money belong to you ?

But people still allow millions and millions ringgit be placed in a third party account....

Xuzen

Should I buy at discount or not?

Lets take two similar risked UTF: RHB AIF & ES ASI

RHB AIF 3 years annualized return is 11.24% whereas ES ASI 3 years annualized return is 10.68%

RHB AIF sales charge is 1.75% whereas ES ASI sales charge is 1.00% (discounted)

A: RHB AIF with 1.75% sales charge


B: ES ASI with 1.00% discounted sales charge



Looks like ES ASI & RHB AIF after adjusted for sales charge, both their future value differs not significant. As such , next we take a look next at their respective volatility ; ES ASI being the less volatile UTF compared to RHB AIF. Hence in my personal opinion, I will choose the less risky UTF.

Xuzen

This post has been edited by xuzen: May 5 2017, 01:37 PM

I hate distribution , it distort my NAV and Port value ... I have to manually calculate and keep track of it . I hate extra work , I want simple , I want all the mollah , not the work .

Yes, given a choice of two UTF of similar characteristic ; I prefer to go for the one with less risk involved . It is actually a no - brainer with regards to this . Yar yar , I play a very tactical and clinical game with regards to my UTF participation . I assign each player UTF a particular role . Some are to act as guardian , some are to cheong / score goals / improve portfolio alpha .


Sweet ! This is being smart consumer !


Yar ! I am also pro - TA GTF in lieu of Manu - USA.


Since my last conversation with you , my call with regards to CIMB Titan UTF has not change. My reason was CIMB Titan is made up of three sector ; namely , USA plus Europe plus Japan . Out of these three developed market , only USA is doing well . If that is the case , better to be exposed to USA alone . Why let the other laggard drag down the performance as a whole ?

Xuzen

This UTF is not in Algozen™ radar.

This month my transaction :

1) BUY AMReit = MYR 2,500.00 .

2) Continue to skim profit from Manu - India and TA - GTF .

Xuzen

The simplest ; maggi - mee™ ; senang dimasak , sedap dimakan answer is because she still offers me a very good risk to reward proposition .

Xuzen

In terms of US stock market exposure:

Manulife US equity = 100% exposed to US

TA GTF = 80% exposed US

ESGLF = 55% exposed to US

CIMB Titan = 40% exposed to US.

In terms of risk - adjusted performance:

TA GTF >>> Manu - USA >> CIMB Titan > ESGLF

TA GTF is the clear WINNAR!

Xuzen

This post has been edited by xuzen: May 12 2017, 12:45 PM

I want to specifically answer your query that has been bolded. Noobies, this is advance class material , not kindergarten syllabus , if this is too complex for you, look away and go play at the sandbox .

Let us take the Malaysian big sweep as an example. There are seven digits starting from 000 ' 0000 to 999 ' 9999 . This means that there are 10 millions tickets each consisting of RM 3.00 per piece. RM 501 will let you acquire 167 pieces of tickets. The probability of winning the lottery is 1 / 10 ' 000 ' 000 x 167 = 0.00167 % chance. This means you have 1 - 0.00167 = 99.83% chance of losing that capital.

Now let now take TA GTF as an example. The 3 year average ROI is 21.5% and a three year average standard - deviation of 13.29%. Her one year to date ROI is 34.81%. Three year average return plus standard deviation = [ 21.5 plus 13.29 equals 34.79% ] which means the current one year ROI is very near to one standard deviation . This also means that the probability / chance of it regressing to its mean is 67% and only 1 - 67% = 33% of it moving away from the mean.

Now compare this two situation, with lottery you have 99.83 percent of losing.

With TA GTF, you have 67% of it losing.

If your choice is between spending RM 500.00 on participating in a lottery draw versus participating in TA GTF , which one should you choose ?

Bear in mind , a lottery is a one time gamble , meaning for the next round , you need to add more capital . Whereas TA GTF is always a participant until you redeem your units.

Xuzen

This post has been edited by xuzen: May 12 2017, 02:47 PM

D1U! After I have written such a cheong - hei response you say the above !

RR is not a tool to generate alpha or for lay-person, it is not to obtain higher return. To generate better return is the job of a fund manager to pick good stocks based on their fundamental analysis skill set. Our role is as portfolio manager.

Think it as this way:

Fund Manger = Field Captain, in charge of tactics.

Portfolio Manager = Team Manager, in charge of strategy.

The theory behind Modern Portfolio Theory is actually to obtain the best outcome given a certain amount of risk exposed. You will notice that MPT tends to gravitate towards risk management.

The rational behind it is simple, if we manage risk well, then over time, the portfolio gain would be natural because the function of time is exponential whereas ROI is linear. If you think along this line, managing the risk, and let time or compounding effect work its magic is more efficient than trying to generate alpha by exposing ourselves to greater risk.

Xuzen

RR is found at FSM fund selector function. Now, go play with yourself.....

This post has been edited by xuzen: May 13 2017, 12:25 PM

Once upon a time, I also play stock - market. Then a thought occurred to me , I think ,

" Can I be better than Lee Sook Yee ? "

or

" Can I be better than the fund managers of KWSP , since those people have the best tools and research report money can buy ? "

or

" Those professionals fund manager get invited to meet the company board of directors and ask them questions directly. Who am I , a ikan - bilis investor ? Can I even meet them directly ? "

After properly considering the above , I come to a conclusion I cannot , and better don't waste time trying . Do not waste my effort to duplicate work done by better people .

Hence I moved away and become a portfolio manager .

Xuzen

MYR 2K?

Usual UTF min participation is MYR 1K. Hence best bet or best bang for the buck:

Just dump into 50% Esther Bond plus 50% into Lee Sook Yee's Equity fund, relax and come back again when you have more moolah!

Xuzen

This post has been edited by xuzen: May 15 2017, 11:10 AM

Yar yar! I recall speaking to a tax agent before ( many many years go ) , if you use your business money to invest in non - core activity , there are negative tax implications. I cannot recall at the moment the exact mechanism , perhaps our resident tax agent aka Dasecret can shed some light.

The rationale is a registered company is there to do business that it is registered for , and when she stray away from its core business activity , there will be tax implications. I need someone more into this line to advise .

Xuzen

Directly = NO

Indirectly = Yes, through KWSP

This post has been edited by xuzen: May 15 2017, 11:26 AM

The above is not what I am thinking....

=======================

After thinking for a while and recollecting , this is what I am trying to elucidate :

For the sake of argument , Let us assume company XYZ Sdn Bhd has a MYR 1M facility with Bank ABC Bhd. The total annual interest paid to the bank by company is let's say MYR 100K . Normally the MYR 100K interest can be deemed as a legitimate company expenses and expensed out from company Profit & Loss statement , thus reducing chargeable income .

Now, let us assume Company XYZ Sdn Bhd participate MYR 300K in FSM unit trust , then the interest expense becomes 1 - (300 / 1000 ) x 100K = MYR 70K effective expense instead of MYR 100K. Thereby the expenses deductible becomes MYR 70K instead of MYR 100K , which means the chargeable income becomes more.

I recall that the rationale for such a calculation is that LHDN follows the principle of " wholly and solely for the production of the business income " to recognize any deductible expenses.

When one deviates from that principle , then LHDN can and will discount out by proportion the portion that is not deemed to be related to the core - business.

I hope I am right . I am not a tax agent , but having been part of company upper management for a long time , I am sensitive to such material fact .

Xuzen

p/s It is my own opinion that when one set up a business , stick to its core business , if you want to be an asset holding or investment company , set up a separate entity for tax efficiency .

This post has been edited by xuzen: May 15 2017, 02:30 PM

Yar yar.... through KWSP proper and not through KWSP - MIS .

Bolehland is rated three stars by FSM research team . China and HK are both five stars . I am in no hurry to come back to Bolehland just yet as I already have a large chunk of my asset parked in Bolehland through KWSP . Even not highly correlated also " boh chap " , I go cari - makan in negeri Tiong Hua first.

Xuzen

This post has been edited by xuzen: May 15 2017, 02:46 PM

Pai - seh , pai - seh , I gave you a wrong impression . I am exposed to HK & China stock - market through AMReits and RHB AIF .

Xuzen

With CIMB it is MYR 10K divided by [ 1 + 6.5 / 100 ] = MYR 9,389.67 capital after deducting sales charge. Sales charge = 10,000 less 9,289.67 = MYR 610.33 .


With FSM it is MYR 10K divided by [ 1 + 1.75 / 100 ] = MYR 9,828.01 capital after deducting sales charge. Sales charge = 10,000 less 9,828.01 = MYR 171.99 .

Note the massive difference in sales charge deducted .

Xuzen

For CIMB , the GST is MYR 36.62 to be further deducted from the initial capital outlay.

For FSM , the GST is MYR 10.32 to be further deducted from the initial capital outlay.

Another satisfied customer who likes Mee Maggi: Cepat dimasak , sedap dimakan™ style of answer !

Take note that this is what heppens when you take cut away the middlemen. But you need to do a little more work to DIY your pwn form filling and research lar !

Xuzen

This post has been edited by xuzen: May 15 2017, 06:35 PM