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....

regardless, it still is very risky to just go into one fund though.

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

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

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

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...

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

why tag me pulak... not sure what I can contribute on this

Anyway, dividends can only be declared when there's distributable reserves, usually derived from profits from operation, be it this year or previous's.
With the new company's bill effective last month, directors are now required to make a solvency assessment before they declare dividends to make sure that dividends would not have an adverse impact to the cashflow position of the entity

capital repayment is quite rare for ordinary shareholders, so I'm not familiar with its requirements or uses.

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.

India as of this morning is going green. It seems the market does not even bother with the unrest. No chance to use the top up ! LOL.

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.

All sifus,

It was 50% coz I withdrew 2x ard 25k each time using epf  monies and put in KGF. Starting last year I withdrew epf monies and put in Titan. Now when the fund is up, I thinking to let go but not sure where to put except in Titan.

Any advise.

All sifus,

It was 50% coz I withdrew 2x ard 25k each time using epf  monies and put in KGF. Starting last year I withdrew epf monies and put in Titan. Now when the fund is up, I thinking to let go but not sure where to put except in Titan.

Any advise.

Consider this thus, if you withdraw from KGF from your KWSP-MIS, it goes back to KWSP first. Then if you withdraw again from there to another UTMC, you will be levied another round of sales charge. Not a smart move! 

This is what I have highlighted before and that is for KWSP - MIS participation, Kenanga is a poor option because amongst it KWSP-MIS approved UTF, only KGF is worthy of investment and not the other. As such Kenanga is a one trick pony and that is why I am reluctant to participate in it, even though KGF is a good fund. Sometimes we have to see in totality and not myopically.

Best option, stick with KGF. For fresh fund consider eastspring, AHAM, CIMB or RHB because they have greater options. Like a buffet dinner, macam-macam ada.

Xuzen

p/s My personal preference is Eastspring because it has a good mix of equity, balanced and fixed income fund available to KWSP-MIS participants.

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

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.

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

Where got so many variables?

Only need to know the following parameters only, that is:

Return of Investment (1),

Standard Deviation of Mean (2),

Correlation Coefficient ratio (3),

Forward Price earning ratio of benchmark (4),

Four variables only .... mah!

Xuzen

Sounds good, I like to analyse myself , I have already been through spoonfed education system, don't want to be spoonfed personal finance..( well spoonfeed a bit also can la, but too much hand holding--> dependent on others). Thanks ya!
:thumbsup:
Good questions! Thanks ya!
Ugh I though need to look at the fund manager etc etc
went through the whole prospectus also   
Back to the drawingboard for me then.. Thanks!

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?  )

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? 

You made some pretty good points. That got me thinking too. By paying the dividend to the shareholders as cash instead of reinvesting them, the effect of compounding would be reduced. Would that not be worse especially for long-term investment? Even if one were to reinvest that dividend by buying from the stock exchange, one would incur the brokerage charges etc. Of course some stocks offer dividend reinvestment scheme (DRS) where there is no charge for reinvesting the dividend (even then, usually not the whole amount can be reinvested due to the minimum units requirement (1 lot = 100 units). I would like to understand more on this too.

Hi guys, I am new to unit trust investment. I plan to submit my account opening form at fsm by probably end of this month / 1st of next month.
I have RM24,000 to spare and here's my portfolio
affin hwang select bond fund - 40%
ponzi 2.0 - 25%
AMasia REITS - 15%
RHB Asian Income Fund - 20%

Any suggestion on improvement for what my portfolio is lacking?