when it doubt read previous version of fsm thread. you will see everyone of us has a different approach to investing. pick someone who's principles align with your own and stalk his or her portfolio.

that's what I did.

also go check fsm own recommended funds and its portfolio.

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

Thanks!

Haha don't worry I almost always find it hard to express myself.

Ok.. firstly, why does Stock A drop to RM1,067. 10% is still RM1,100.
The total return stated there is clearly 13% compared to B's which is only 10% lol.

My capital won't decrease. They don't take dividends out from your capital but from the company's earnings. I think that should clear it up haha. I will still own 500 shares after the dividend is declared. And if you tell me its a 10% increase in share price, it'll go up to RM1,100.

Anyway I don't think you can compare stocks like that. A growth stock has higher growth potential and also much higher downside. Dividend stocks offer me stability as well as (hopefully) ever increasing dividends.

This post has been edited by Dividend Magic: Feb 12 2017, 10:47 PM

Maybe this explanation from Investopedia will help.

If Company A is trading at $20 a share and is about to offer a $1 dividend and you hurry to buy the stock before the ex-dividend date, you would receive the dividend and make an easy 5% return.

In actuality, however, the company's stock price would decrease on the ex-dividend date by about the same amount of the dividend to eliminate this form of arbitrage. So, if you purchased stock before the ex-dividend date you would get the $1 cash dividend, but this would be offset by the simultaneous $1 drop in the stock price. Thus, buying a stock before a dividend is paid and selling after it is received has absolutely no value except a partial return of the capital invested in the stock in the first place.

Read more: Why don't investors buy stock just before the dividend date and sell right afterwards? | Investopedia http://www.investopedia.com/ask/answers/13...p#ixzz4YTzM1tQK
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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?

I ain't expert but I'm emulating FSM recommended Aggressive portfolio. Not the entire portfolio though. Swapped a couple of funds according to my belief and risk appetite. Ultimately, no one knows what would happen in the future. No point timing the market. Just stay invested and top up regularly with value-cost averaging. Buy at a discount whenever possible. This is what I believe in.

This post has been edited by skynode: Feb 12 2017, 11:40 PM

here's my top pick based on their geographical location and my risk appetite.

FSM FundsFunds

Affin Hwang Select Bond....(20%)
RHB Asian Income Fund. ...(10%)

CIMB-P Asia Pac Dynamic ....(15%)
Eastspring Emerging Market...(10%)
CIMB-P Greater China Equity ..(10%)
Manulife US equity fund (10%)
Manulife India.........(10%)

AmAsia REITs .... (10 %)
TA Global Technology Fund...(5%)

The share price usually picks back up, it's just on the ex-date it decreases by the dividend amount to eliminate arbitrage.

Also, you can't reinvest the dividends into new stocks just like that lah. Stocks have a finite amount, not like Unit Trust where each unit is "imaginary" and the fund will create new units arbitrarily. On top of that stocks have to be bought in lots of 100...so if share price is RM1, with RM33 dividend you won't get a single lot.

Since there's an ongoing discussion on stock, I have another question I want to ask:

Does the stock price in any way represents a company's total asset?
ie. Amount of stocks held by all investors multiplied by the stock price = company's total asset?

I have more question to follow but before that I need to clear this doubt. For me I think the stock price can be in no way represents the company's total asset, henceforth when the share price increases (stock holders' capital gain on paper), it does not necessarily means the company actually worth that much.

I seem to confuse myself. Let me rephrase. I use an example below:
At IPO, Company A offers 10,000,000 shares at RM1 per share.
The company raises RM10,000,000
Then the shares are being traded in the market for whatever price based on investor's sentiment, at a certain time, it is being traded at RM2 per share.
But the company does not raise more money beyond the initial RM10,000,000 raised because the share is being traded at Bursa at a price more than the IPO price right?
Is there a mechanism to correct this situation?

That brings me to my next question: So the company made profit over time, then the capital raised from the IPO is safe at the company's keep. Then there's two stack of money: capital and profit. The company will take some money from the stack of profit and distribute it to the investor, and leave some as cash to facilitate/expand the company's operation.

So why would the share price drop when a dividend is distributed? Is there any company which don't distribute dividend?

The investor's 'capital gain' is when he sells the share to someone else at a current price above he bought it. As the price can fluctuate over time, he can gain from the dividend payout AND also selling the share at a premium.

I don't know what I am asking anymore. If someone able to understand what I mean I would be grateful to also have the answers to my concerns above.

This post has been edited by 2387581: Feb 13 2017, 12:28 AM

This is something that bugged me too. By right, a company shouldn't bother about its stock price/performance after it already raised the IPO right? So why do they bother?

Based on my research, these are some of the reasons:

1) A large percentage of the stock is sometimes held by the company's treasury or subsidiaries
2) A large percentage of the stock is sometimes held by senior managemenet - therefore, management has the incentive to ensure the stock performs well so that they have a high net worth
3) The market capitalization (total stocks outstanding x price per share) of a company does give it access to higher loans from banks
4) If a stock is undervalued relative to the intrinsic (i.e. fair) value of the company, the company can be subject to a hostile takeover attempt

Amount of stocks held by all investors multiplied by the stock price = the market capitalization of the stock. This is just an "imaginary value" and doesn't actually mean much since obviously the more the number of shares liquidated, the lower the share price will be. It definitely doesn't mean that the company is worth that much.

PS: Try to talk about this in the stock sub-forum, not this thread

This post has been edited by contestchris: Feb 13 2017, 12:56 AM

In 80 years' time, the mutual fund might still be operating. I'm sure I won't be here, and reasonably sure you won't.. but the fund probably will. People will retire, other people will take over, the fund continues.

But if you trade for yourself, once you aren't there to maintain the fund, that's the end of it.. unless one of your descendants wants to (and is good enough) to take over.

This post has been edited by wodenus: Feb 13 2017, 01:08 AM

My portfolio consisting of 50% KGF. Shall I trim now as the price went up alot ?

You look at the following:
(i) can it beat the benchmark? (over min 3 years period)
- If yes why? Is the fund good or because of exchange rate?
(ii) compare it with it's peers (other funds which invest in the same region)
- Did it beat them? (over min 3 years period)
- If no, better pick the winning team
(iii) Choose returns/stability

This post has been edited by Ramjade: Feb 13 2017, 07:47 AM

yes you should. 50% is way too high for an allocation to any fund.

when you constructed that portfolio with 50% KGF, what is the objective? why go 50% KGF?
isn't now the results of your portfolio favourable to you?, isn't now is what you had hoped for?
what is the other 50%?
if you sell now, where do you want that money to go?
if you still want to hold 50% KGF, you can take the excess out to buy a valentine gift or move to a CMF

on the relativity note: KGF had just gone up abt 5% this last 6 months, which would be 2.5% of your portfolio increase...so now, there is just 52.5% of KGF in yr portfolio (simple maths calculation only) just 2.5% increase niah..not much wor...if you have the heart for 50% in KGF, I am sure there are rooms to take in another 10% or more.

else, you can try this....

Basic Steps To Construct An Investment Portfolio (very old article...just get the general idea)
https://www.fundsupermart.com.my/main/resea...-Nov-2011--1753

The Importance of Rebalancing A Portfolio
https://www.fundsupermart.com.my/main/resea...-Portfolio-5374

The Nature of the Game – Rebalancing
https://www.fundsupermart.com.my/main/resea...ebalancing-4232

Clearing Your Doubts On Rebalancing
https://www.fundsupermart.com.my/main/resea...ebalancing-1980

As The Year Comes To A Close, Consider Rebalancing
https://www.fundsupermart.com.my/main/resea...Rebalancing-842

btw, there is nothing seriously wrong with holding 50% or 100% of a fund in a portfolio.....as long as 1 is happy with it......
but I would personally advocate a more diversified portfolio.....well maybe it is my age, the amount invested, the knowledge, faith and the chicken in me

This post has been edited by T231H: Feb 13 2017, 09:05 AM

It is a bit strange to me that when it not performing you are not doing anything about it but when doing better you want to trim it.

I can see a few of the young chaps here congratulating each other on their "performance" for the past few years.

If you look at the KLCI, the last it dip below 1600 was like 2012.

You guys haven't seen what is a market crash...yet

I hope you guys acknowledge that you are fortunate to start at the good times. And don't assume the stable market will continue forever. Always be alert. Making money, especially from stock market, is never easy !

+1. the way I see it, it is good that some of the younger generation are taking charge of their investment vehicles as compared to their ilk who spend unnecessarily in the malls and hipster cafes. as long as they know the risk they are taking and not crash and burn.

also a marker crash is a blessing in my honest opinion, its one giant reset button. think of it as the hunger games. you weed out the weak and the greedy.

this may not be him...

but there are some that first got into so much faith in KGF due to its past performance and good recommendations bought it with full beliefs that it is a sure make money fund. but after having got it, the performance stayed flat, not up to historical expectation, the buyers felt dismayed, despaired at time felt cheated....what to do at that situation, no more faith to buy more again, cannot sell (for will be considered 100% lost)...just hold on with hope that it will recovers.
Now that KGF had recovered it losses or portfolio IRR had beaten FD rate.....some would just want to sell it off due to the "BAD experience" they had had.

have seen that for India and China funds during the last 3 years....