My portfolio overall returns dropped from 13% to 7% in the past 2 weeks.... global correction going on now?

correction ever since last year until now. opportunity to buy more

wow came across this fund AmanahRaya Syariah Cash Management Fund

thou FSM tagged it with risk rating 0, but it has a sharp downfall of ~(19%) at 28 Jan
I don't think it is due to income distribution

FSM - AmanahRaya Syariah Cash Management Fund

is it because of its exposure to Serba Dinamik Holdings Berhad?

This post has been edited by tadashi987: Feb 1 2022, 09:37 AM

Yup, one of their top holdings are Serba Dinamik CPs. https://www.fsmone.com.my/admin/buy/factshe...eetMYARSCMF.pdf

Lesson is don't always rely on FSM ratings but do your own due diligence.

All money market funds have low ratings but not all MMFs invest purely in bank loans. When you have CPs coming into play, there is an added layer of corporate risk.

This post has been edited by TOS: Feb 1 2022, 10:16 AM

yeah but I was just concerned that the analyst in FSM should be more stringent and cautious in tagging such funds' risk rating instead of tagging as zero risk rating merely because of the fund's MMF fund nature.

imagine if there is any retail investor who solely put trust on FSM risk rating and saw it is MMF fund, it will be a sudden loss of almost 20%

loss of 20% in a FSM zero risk tagging + MMF FUND could give heart attack

but yeah, of course, FSM can argue and kick away the ball from their court saying that they don't take in such isolated corporate risk as their risk analysing factor.

This post has been edited by tadashi987: Feb 1 2022, 10:54 AM

What you said make perfect sense. The risk rating is there for a reason and MMF are not supposed to have such big swing. I am starting to think FSM Msia analyst are different group from FSM Spore.

I think maybe you all can write in officially to FSM for their side of story? It will be a pity FSM reputation is being wrecked by their subsidies outside of Spore. I guess that is the risk that come along as companies expand overseas outside of their homebase.

Hope this is just a one off incident.

Well, Caveat Emptor has always been the mantra for retail investors.

I have long realized that FSM marketing has been "bombastic" and exaggerating to some extent. Investors with these low to "zero-risk" funds ought to review the fund documents, especially the annual and semi-annual report and scrutinize the holdings of the funds. Just because it didn't happen to FSM SG does not mean that it won't. In low interest rate environment, a lot of FSM SG "MMFs" are starting to behave more like "short-term" bond funds to squeeze the extra yields.

There is no such thing as zero-risk funds, even MMF funds are subject to a great deal of counterparty risk. You never know who is on the other side of the loans, let alone your funds are not insured. That is why MMFs can offer higher returns than FDs, everything comes at a price. The only zero-risk funds are your bank deposits that are insured (and even that depends on whether the insurance companies are in good financial health...).

Of course as sgh stated there is a possibility of oversight issues they can't control MY operations entirely from Singapore. Reporting to them is one good solution.

But looking back, CPs of poor companies should never be part of any MMFs. They should belong to high-yield space players. I also notice FSM tagged a few high-yield bond funds as low risk funds, investors should review these funds and treat them as "high risk" equity like funds instead.

This post has been edited by TOS: Feb 1 2022, 01:14 PM

i notice nowaday rhb cash management 2 is doing good with 1.76%. wonder where do there invest

Also check out the rhb bond series, on a rollercoaster ride from MEX holdings.

For me personally I just don't see the appeal in these so called low risk funds, their return is really not all that much of a difference to FD but they are still subject to these bumps and black holes, especially the malaysian managed ones just because their fund size is so small and (maybe) they don't have enough places to diversify to...

I have lots of holdings with CMF 2.

You can read the financial documents like the annual/semi-annual reports and prospectus to know more. CMF 2 is entirely in cash and deposits only, no CPs, bonds etc. If you have CPs and bonds the funds need to report the holdings and the issuer name (Sunway, Genting Bhd. etc.)

Another way to check if the returns are reasonable is to compare with its peers, they should be quite similar but if you observes huge outperformance by a few % then you ought to be more careful and seek to understand the reason behind the outperformance. For reference a wholesale islamic MMF by Eastspring (Islamic Income) is around 1.81% for the past year, so the figures are about there. https://www.eastspring.com/my/funds-and-sol...s?fundcode=E026

If you are concerned, deposits with licensed institutions are usually level 2 at fair value hierarchy. If you see level 3 items in the report, that should raise your eyebrows. Another way to check is a rather dumb method but works fairly well. Just search the whole document for words like "bonds" "commercial papers" or common CP/bonds issuer's name. If the browser search/PDF viewer search turns out nothing then you should be be safe (for now).

Yeap agreed. Bought up more during the recent sales charge promotion period. Trust the process.

Hello sifus,

just curious, do you guys buy stocks through FSM, or just use it to track stocks? Realised how expensive it is to buy through FSM, wondering if I should make the jump to something like Syfe or something

If you realised and are very no happy after realising how expensive it was to buy stocks thru FSM n also you knew where and how to get it at cheaper cost...
Then I think the answers is clear to your pondering of "wondering if I should make the jump to something like Syfe or something"

This post has been edited by MUM: Feb 4 2022, 01:00 PM

Expensive is one thing but does the price execution is fast and accurate or not

I suggest you have multiple accounts to keep your options open instead

I presume you are referring to stocks outside of malaysia?

this year no free angpao?

Myself and my husband received

Read postings in page 1472 n 1473,...there are some mentions

To all Sifus here :
Gong Xi Fa Cai..

May i know is there any good online/ offline course about Unit Trust Investment ??

Cheers.