PRS, kenanga didnt give the best option (got cimb prs asia pac), so no chance

Thinking is KGF better cause got both big cap and small cap or kapchai cos strong small cap and got other better funds to intra switch?

Nikko Am did have 2 funds (one capital growth, and one dividend income), that can beat these etf over 3-5 years (despite factoring in MER), provided you invest with poems (kick out those annoying platform fee for equity in fsm )

For better investment decision, you need to see whether they beat their respective region and sector benchmark (not necessary the one set by the fund manager)

For example, CIMB asia pacific dynamic income fund, although the fund manager set the benchmark as 8% per annum, it is very much correlated with MSCI asia ex japan index, so you need to compare them to see whether this fund can beat that index, if not, is better to find its peer that can beat that index or invest in etf that invest in that index

There are several funds within the same league that invest in the dame reion/sector, even though they may not use the same benchmark, they may correlate to the same index, so is important to compare them to see which fund can outperform the index the most

Even so, he needs to be more humble in giving his view rather than insulting others

The thing is someone take what they read as absolute advice without own research and blindly go for recommended stocks or unit trust.

Some unit trust can beat the index consistently but most go down the drain (you need to find out the gem).

Same for stocks, it can be risky if you didn't diversify enough or knowing when to buy low sell high or enter and exit when you didnt do enough homework to pick the potential stocks

The point is, if one research, they will sure get the good unit trust portfolio as well as good stocks portfolio, best of both world

Dividend Magic I do see you preach for dividend income investing as the principle of long term investment to generate income

But, to my understanding, when a company declare dividend, its' share price fell, and if we did not reinvest the dividend, our capital in investment actually shrink.

But if we reinvest the dividend back into it, then it makes minimal difference to those stocks which do not declare dividend, instead they spend their earning into capital growth (provided both non-dividend paying and dividend paying stock have the same capital gain percentage)

Then what is the fundamental difference in focusing in dividend stocks vs growth stocks when we reinvest the dividend, it will be the same as growth stock which didn't declare dividend?

p/s: asking this is because, whenever people understand about mutual funds, some companies focus on the distribution numbers and pay big dividend even though the fund is negatively performing (is it similar to companies who declare dividend even though they have negative earning for the year, but use previous years earning to pay). I believe that the distribution=performing misconception comes from their understanding from stocks investing when they think, it applies to stock, it applies to mutual funds as well, since, from what I understand, mutual funds distribution is meaningless and a marketing tactic to push down unit price

This post has been edited by AIYH: Feb 12 2017, 08:43 PM

And what will the reason be?

If on ex dividend date, which the share price suppose to drop by the amount of dividend declare, but the day itself, the share price rice, then it will see like the share price did not drop by the dividend amount proportionately.

If that's the case, then mutual funds will have the same situation no?

Or they have different tax treatment between stocks or mutual funds? or something else?

But some company do declare dividend even they have they have negative earning for the year, if they use their previous years earning to pay for the dividend.

Same for mutual funds no?

Prehaps I am not good in expressing myself, so I will try to make a simplistic example to express my question:

Say we have 2k to invest, 1k in stock A and 1k in stock B

Say Stock A is a dividend stock where they declare yearly dividend of 3%, and annual capital growth 10%

Say Stock B is a growth stock and also annual capital growth 10%

Assumed both have share price @ RM2 at the time you invest both at the same time

If after one year, your value in stock A grow to RM 1100 and declare dividend, if you did not reinvest the dividend, you will have RM33 dividend received and your capital is left with same 500 shares @ RM 2.134 value RM 1067

Suppose you reinvest the dividend into it @ RM 2.134 and received 15.46 shares, you will have 515.46 shares @ RM 2.134 value RM 1100

Stock B, without dividend declare, enjoy yearly 10% capital growth every year, so 1st year will grow to rm 1100 as well

Assume each year is having the same trend for simplistic purpose, wouldnt both stock have the same capital growth value if you opt for dividend reinvestment?

Unless as you said, you take the dividend declare for living purpose, but if you did not reinvest the dividend, wouldnt your capital in the stock decrease every year after the dividend declared? And assume the dividend yield and capital growth remain the same, wouldnt your dividend received become less and less after each year?

Unless I am confusing myself in something else, I am trying to understand more

Because if one opt for dividend reinvestment, I cannot see the difference between dividend stock and growth stock in performance wise if they enjoy the same capital growth (unless what set them apart by their difference in fundamental that will caused them to grow differently? )

Prehaps you could share where do you stuck in analyzing?

You could start with recommended funds and portfolio

You could also use fund selector and chart center to pick funds based on their RRR within their asset class, region and sector

You could also just tailgate xuzen or other sifu portfolio, subscribe to them for their kind public analysis

Erm, the bold statement means if you hold 500 shares, and before dividend, share price @ RM1.1, they declare 3% dividend (3 sen), the share price drop 3% (RM 1.07), assume you do not reinvest the dividend and you still hold the same amount of shares, wouldn't your share value now @ 500 shares * RM1.07 compared to if they didnt declare the dividend the share price will remain @ RM 1.1?

And if that happens every year where you use the dividend as your income to support your living instead of reinvesting, would the capital be less than if you reinvest and the gap will get wider as it goes by?

Or did I understand it wrongly?

Because they dont have sexy names like ponzi, or sexy fund managers like esther or selina or sook yee

no, is you set up a auto debit instruction from FSM, you can set the amount you want to RSP into the fund you choose

my gosh, the gain in kgf and kap chai and also ponzi 1

But you do know their fund fact sheet is always close to 1 month plus lag

For now, from november to december:

kgf maintain roughly same level in liquid asset

for kap chai, they injected 2% of liquid asset into stocks

but ponzi 1 pumped almost 11% liquid asset into stocks

RSP you can start without initial investment (for most funds) and you didnt need to manually top up every month, either set deduct from bank account or CMF, they will auto deduct your money into your selected fund every month, hassle free

This post has been edited by AIYH: Feb 13 2017, 09:40 PM

I think the recommended portfolio is just the reference for us to follow only

Hence, it is not an auto pilot portfolio, rather, you need to refer them monthly and you make your own decision and transaction

When they switch fund, they just replace the old fund info and data with new fund info and data, performance is not inclusive of sales charge

But I could be wrong, you may refer to live help in working hours from their website or email them to verify the info or ask more details

p/s: if you want auto pilot mutua funds portfolio, you should go to their SG counterpart which they have MAPS service, you invest once and/or put a sum of money in their cash account to do auto monthly investment, they will help you allocate fund and switch fund according to their expertise for a small percentage of annual fee

For KGF, check their latest FFS, they showed the latest 3 months stocks and liquid assets percentage

For kapchai and ponzi 1, compare their FFS between november and december

You could download, but i didnt

For previous 2 months, you can still google them on top few results

You can, but if you dont have initial capital, you can start with 100 via RSP for most fund

Moreover, some funds like manulife and aberdeen required 500 for subsequent top up whil via RSP, you only need 100 to top up them

If you can get better offer, by all means go for it

Unless you will a staff there until retirement, chances that you will pay higher SC once you leave the bank, so that time only transfer to FSM

you see the fund size changes vs the cash changes in %, which changes more

available in their website, fund selector, fund sales charge, or their respective fund page

sometimes they do have promo

you may also consider eunittrust if you want even lower SC promo

But the stocks they converted could push the return higher, more so if more fund manager do the same