Just invest in one fund ponzi 2.0 also can get that return for 5 years. No need to do any reading.

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?

Good. Should be a safe portfolio.
Actually I have the following in mind :

1. Esther bond - 40%
2. Ponzi 2.0 (Apac ex Jpn) - 20%
3. Ponzi 1.0 (ASEAN Small Cap) - 15%
4. AIF (Apac balanced) - 15%
5. East spring GEM (Emerging Market) - 10%

Target 8% return pa.....any comments please ?

AIYH I think it's about demand, then you key in wrong value (higher price) so people willingly sell you their part.

If you are having AIF, no need for Ponzi 2, Ponzi 1
Where's your developed market?

This post has been edited by Ramjade: Feb 12 2017, 09:15 PM

if you are managing your wives portfolio I would suggest you have a 20 minute talk like what I did with mine. you need to get her to have a rough understand what is her risk appetite.

if she has a very play safe personality, I would suggest you take up

Esther bond 40%
Rhb AIF 20%
Am Asia REITs 10%
rhb emerging market bond 20%
global Titan 10%

Avangelice, here you go. India will be taking another hit.http://www.thestar.com.my/news/world/2017/...indias-kashmir/

thank you again for this brother. I'll make sure I check the fund every forth nightly instead of mostly. don't wanna have a cardiac arrest when I find my 15% dwindled to 4% if a full scale war happens.

I am betting on asia pac
Considering changing AIF to Global titan...

This post has been edited by David3700: Feb 12 2017, 09:30 PM

Based on past similar cases, when is the best time to top up ? And how long the dip will be ?

I have no idea. I guess it lasted 2-3days? *forgot*

the September small conflict caused a 2 to 3% dip (if my memory serves me right) that lasted over a weekend and boiled over to the following week. soon after it picked up. Ramjade was the one who notified me and I think it was a Thursday which is NAV update day most of the time.

may I add on....
when there is a first chance,
let her know when the mkts corrected/dips.....show her how much was "lost"
ask her how she felt, see her emotion.

let her know when the mkts on bull run (like recently)
ask her how she felt, see her emotion.

let her know, volatility is always there, what she made during the bull may disappeared soon too....if she cannot take it or shows adverse emotions till it affects the family atmosphere ....then just take the money out.

that helps. I'll be sure to inform her of that but she already said if any lost I need to top up. lol so better just keep quiet hahaha

But many many thanks on your vote of confidence!

This post has been edited by xuzen: Feb 12 2017, 10:12 PM

Both UTF NAV & Stock price do increase ex-dividend date, not just stock price alone.

However, if one wants to really be nitpicking or hair splitting (hint hint Dasecret), dividend from stock is taken from the profit and not capital. If capital is used, then the term used should technically be called capital repayment, not called dividend.

P/s waiting for auntie Dasecret to come and correct me or to give her dua sen worth of professional advise. For the uninitiated, auntie Dasecret is a chartered accountant

On the other hand, distribution (UTF's jargon eqv to dividend for stock), can be taken from both income and capital.

Xuzen

This post has been edited by xuzen: Feb 12 2017, 10:17 PM

It's kinda confusing for me but I think I get the gist of what you're trying to say. You're focused on the period of time when dividends are declared.. How about the other times, stock price will fluctuate.
Whether or not a stock price will increase or decrease after a dividend is declared depends on the dividend declared. If the market expects a 3% yield from the stock, but it declared a higher dividend, of course the price will reflect the increase in dividends. Bear in mind this is just a very simple example. Basically, no one profits from timing for ex date etc.. the market will have already accounted for that.

What I'm chasing for is the dividend growth in stocks. I'm holding stocks for the long term so actual capital gains is rare for me. I'm in it for the passive income (dividends) to help eventually pay for my lifestyle. If you're chasing capital gains, you'll actually have to realize and sell your shares to pay for your expenses. Hope I'm making it understandable

As for the negative earning thing.. Mutual funds if they have negative cash flow, the only way they can declare dividends for you guys is to sell of their holdings. Or eat into their retained earnings I guess. Correct me if I'm wrong sifus.

Hindsight is always 20-20.

Very hard to argue there

We all are in this journey called Road to financial freedom or some called it Road to Comfortable Retirement.

Some like to drive their own cars because they simply love to drive (DIY Stock investment)

Some like to kick back relax and let someone else drive them in a chaffeured limosine to their destination in comfort. (Private Banker or Bank RM or Licensed Financial Planner)

Some like to save money and and take a public bus or KTM Komuter to their destination. (DIY UTF low cost platform like FSM).

Macam-macam ada... lu suka yang mana satu?

Xuzen

This post has been edited by xuzen: Feb 12 2017, 10:34 PM

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? )

Dear sifus,
How do you analyze which fund to invest in? (So many variables.....)

sorry if stupid question, I have read and reread the FSM tutorial many times but each time got more question marks...