Hi all, my current portfolio allocation is:
- KGF 40%
- Ponzi 2.0 60%

I am planning to add two more equity fund. Equity fund I planning is TA Global and emerging market fund (RHB Emerging). The reason I chose RHB emerging over eastsrping is the volatility is lower, and the return is almost the same. Does this complete my portfolio in term of diversification?

After allocation will be.
- KGF 28%
- Ponzi 2.0 44%
- TA Global 14%
- RHB Emerging 14%

Is there a need of adding a bond fund? I have enough emergency fund for 5 months and FD.
Any comment is appreciated!

since October 2016 and I am not a master nor a teacher. just a regular Joe who wants to help.

from the discussion I had with FSM representative.

I was cheated from my previous Prudential agent. (signed a investment linked plan rather than a medical plan) so I arrayed what I wanted from my next policy which is purely medical coverage. no riders. no investment linked plans. just medical.

so for the 3k I got a very good coverage of 1.5 million with the best rooms in any hospital as opposed to my previous plan which I was paying nearly 4200 for 150k coverage.

also best of all i get 30% agent fees back from MCIS which is nearly 6k if I'm not mistaken.

Hi guys, just got my FSM account approved just now.
I'm a newbie and currently overwhelmed by the vast amount of fund choices.
My mum wants me to help her invest, she is 60 y/o at the moment.

Under the recommended fund section, I think RHB Bond Fund suits her best, better than her money in FD now.

What I wanna ask is, are there better low risk funds (not listed in recommended fund) compared to what I mentioned above?

Also, I'm 22 y/o now, I have some savings now and wish to invest now too, I'm thinking of:

1. Kenanga Growth Fund
2. EASTSPRING INVESTMENTS GLOBAL EMERGING MARKETS FUND
3. CIMB-PRINCIPAL ASIA PACIFIC DYNAMIC INCOME FUND
4. AFFIN HWANG SELECT ASIA (EX JAPAN) QUANTUM FUND
5. EASTSPRING INVESTMENTS GLOBAL LEADERS MY FUND 

I'm planning to invest my first 5k here

Algozen™ speaketh; listen well...

I tried putting in various UTF(s) into Algozen™ and letting her run the numbers. Maximum per simulation run is ten UTFs. Anything more, is limited by the correlation coefficient parameters. 

The criteria for selecting UTFs for simulations are:

1) Good risk to reward ratio among peers
2) They must have poor correlation among each other (meaning must be well diversified)
3) Good rating from FSM or other rating agencies such as morning star, lipper etc.

Some of the UTFs I used to run the simulation are:

KGF representing home ground

TA GTF, Manulife US & CIMB Titan representing US

CIMB Greater China &  Eastspring Dinasti representing Greater China

Esther Bond, RHB ATR & RHB EMB representing bonds

Manulife India

TA Europe

If I do not put those into the simulation it means those UTFs do not satisfy the above three criteria.

After running multiple scenarios (I think Dasecret gave it a fanciful name: Monte - Carlo simulation), Algozen™ came out with the best scenario that is:

TA-GTF @ 25%
India @ 10%
AMReits @ 25%
Ester bond @ 40%

This will give a ROI of 12 to 13% with a risk to reward ratio greater than two. This port is moderate with bias towards some aggressiveness. If you want to be more aggressive, reduce Esther Bond by ten percent and increase by proportion into the other. This port is scalable.

Take note that Algozen™ is very focused, she doesn't play Pokémon Go style. The above four are very well diversified and quite optimized in terms of risk to reward.

Xuzen

from the FAQ, I think "Yes", except for the conservative portfolio

Where to find this page?

the higher the bond ratio MAY not be a BAD things at times.....

https://www.fundsupermart.com.my/main/resea...lio-Returns-566

Just updating my port for some shiok sendiriness.

I have been tracking my port for the past 11 months.

In this eleven months, 3 months gave negative return whereas 8 months gave positive return.

Average return is MYR 2,XXX per month.

Xuzen

[attachmentid=8872672]

what is this ?
How to analyze this?
Any sifu can help

Thanks guys!
Wondering if buy from FSM easier or direct buy from the PPA?

Moving ASx fixed price funds to Esther bond might not be a good idea. ASx correlation to equities is near zero, while Esther bond to say, kgf, is 0.24 (post 5196 page 260). You might want to ask Xuzen to run algozen with ASx and see..

Some thoughts on the bonds recommended by algozen - they seemed somewhat risky. In the literature of standard 60/40 or 70/30 stock/bond portfolios, backtesting is usually done with S&P500 / 10 year treasuries. US treasuries and other high grade government debt are much safer and have negative correlation with stocks. In comparison, Esther bond is mostly emerging market corporate bonds. From the fund factsheet, 20+% of Esther bond are junk bonds (below BBB), assuming that 'Others' are grades lower than B.

RHB EMB seems a bit dodgy to me; I can't find any mention of the credit ratings of its holdings anywhere, and in %country allocation, 'others' has an allocation of 60%! What gives?! Better hope its not full of junk.
Anyway, its correlation to local stocks is surprisingly negative. Just a wild guess - when foreign funds pulled out of bursa en masse a few years ago, myr was severely devalued. This decreases the NAV of local stocks, while increasing the NAV of foreign bonds (RHB EMB) in ringgit terms. The RHB EMB might not be hedged to myr (can't find any mention) while Esther bond is. Hence Esther bond behaves more like EM/corporate bond - low positive correlation to stocks.
I doubt both bonds would fare well when the next economic crisis comes.

In 2015 and 2016, myr depreciated nearly 30% against USD, which affects the relative performance of local vs international stocks/bonds. This is probably a one off event (hopefully!), so it might not be prudent to base portfolios primarily off this time period. Algozen is based on past 3 years data, right?

The value of my ASX is approximately 2.5 times the value of my FSM portfolio. I know that seems a lot but that's where all my savings goes ever since I just started working
Thanks for the suggestion. Just decided to allocate a small percentage of my funds into Gold. Pretty positive that Trump is going to screw up something and that Gold should go up

interesting thoughts. for all those overseas investments, i wonder how easy or difficult it would be for the next of kin to claim it