Caveat Emptor - Buyers beware

Question is, why do you feel conned? Did you read all the disclosure documents and FIMM form when the bank ask you to sign?

FM is not from a bank. The person who sell to you is probably registered UTC

Btw, the bundle investment is usually not worth it, the incremental interest you get for FD is very minimal compared to the fees you pay for the UT. It'll still be cheaper to buy from FSM and place promo FD without such bundle

dear sifu, i'm new and i wanted to buy PRS fund from FSM cos of the zero sales charge. I have registered an account with FSM. I want to know the procedure, should I purchase the unit first, then follow by submitting to FSM the required documents for account opening? Is it correct doing like this?

Thanks a lot for the answer. The money that we have invested will be held by the fund manager trustee, and our holding is recorded by iFast Nominee, am I understanding this correctly?

If one day Fundsupermart is to close down, I assume that iFast nominee will have a backup file on the holding details right? When I say close down, I mean a real close down of everything, including iFast nominee, since it's basically under iFast Capital boss also right ? and there will be no more iFast staffs to refer to, will the fund house recognise our ownership by our FSM statement ?

Sorry to ask this, before putting all my money into one basket I really need to convince myself first by answering to all these questions that popup in my mind..

Thank you again.

Does it ever occurred to you that PM may close down too?
It may sound sarcastic but it is real.
Any legit investment channel, though regulated by SC and FIMM, doesn't mean your capital is protected, as it is so in a FD bank account insured by PIDM.
PMB (FM) is a separate entity from PBB (Bank).
Or you may want to be even safe (or maybe not), look at the annual report of the fund which you want to invest in, select say 30 counters, and buy into the underlying stock instead of doing it via UT. I think the chance of 30 companies closing down together at the same time is rather slim, and the % of upfront fee is much lower (FSM sales charge 1.75% compared to brokerage, say 0.106%)

Even saving account PIDM insured also not fully insured lo.. 250k is the limit only.. if u put 1 mil inside saving account, later bank close down u can get back 250k only..

http://www.pidm.gov.my/en/for-public/depos...verage-for-dis/

diverse the 1m into 4 x 250k in different banks...I'm not too sure if different FD account under same holder in same bank counts...need to ask other sifus.
but please don't focus solely on the PIDM part, as what was being discussed is the safety of FSM as an investment vehicle

Upon receipt of the complete documents, Fundsupermart will activate the investment account within 2 business days.
Once your account has been approved, you may login to your investment account using your self created login ID and password.
You can then proceed to log in and start transacting.
https://www.fundsupermart.com.my/main/faq/0...ng-Started-8660

<adding fuel to fire>
ahem.. up to 250K per bank per person only
ie. even if one has 1M in 5 accounts in Bank A, through 5 branches, only up to 250K insured

so spread lor
ie. 250K in bank A self a/c +250K in bank A spouse a/c +250K in bank B self a/c +250K in bank B spouse a/c +etc.

if our fellow forumer sooooo worried, can do with FSM +do with eUT/POEMS +do with fund house direct, +etc

just like my dead grandma used to be worried about when getting out of the house or in the house....
worried like....
will our house being burgled when we are not in,
will she be knocked down by a car while crossing the road,
will she choke eating tang yuan
will she have allergies eating this or that,
will bank cheats on her savings,
will she....etc, etc
all I think are valid concerns.......so are what 'IF" suddenly banks, EPF or National registration suddenly losses "MY" data ....I maybe left with not such person.

everything we do or no do have risks.....just that the impact, probability of it happening and the opportunity cost maybe not the same to others.....
if they want it...they will gives reasons for wanting it,....if they don't want it...they will gives a lot of excuses.......both are legitimate responses.

looks like this recent parting shot of about the same concern is relevant......after all it is their money and their valid concern...

This post has been edited by T231H: Sep 5 2017, 05:51 PM

some would consider this to be more of interest and useful discussion.....
FSM Fund Choice: Affin Hwang Select Bond Fund - MYR
https://www.fundsupermart.com.my/main/resea...mber-2017--8800

Performance Review: FSM’s Monthly Fund Choice
https://www.fundsupermart.com.my/main/resea...und-Choice-8782

Thanks for the reply. I understand that the capital is not protected in investment, and that is the risk to capital due to investment itself. What I am trying to ask is the stability of the platform and what will happen to our money if our worst nightmare really happen. These are valid concern before one is deciding whether to move all eggs into one basket.

Buying online is something relatively new in Malaysia, even for genY like me. If you ask many uncle auntie ( with big investment), they still prefer to go to agent/bankers and rather pay a higher sales charge. I prefer to adapt to new things, however I'm concerned because these are hard earned money, not trying to start an argument here.

Public Mutual is not likely to close down in many's opinion. They have been there for so many years. The problems with PM are the ridiculously high sales charge of 5%, their performance, and so far I don't get much professional advise from them.

Regards.

This post has been edited by hua91: Sep 5 2017, 06:21 PM

Check the fsm website for links of its parent company to see when has fsm ifast established.....

Something we discussed before

https://www.fundsupermart.com.my/main/resea...-May-2017--8339



In anycase, you should always keep a copy of your e-statements to back your claims should the unfortunate happens

But to be honest, I'm more worried about Pub Mut losing my money "legally" through investing than losing my money in FSM because they close down. It's a lot more likely based on historical data that the former would happen

great explanation about opening acc wit FSM. but in my case am refering to initial buying UT for PRS. cos I read in their website that first step is to perform the transaction, only then fill up PRS forms and submit later. I wonder if my understanding is correct or not.

To be fair, the only seemingly advantage PM have is they have been around for a long time. Hence their large AUM and their association with PBB which gave the consumer confidence. The biggest problem with them is also because they have been around for a long time, with a loyal fanbase, they don't see it as a problem yet. Disruptive players like FSM and eUT, akin to Uber and Grab in the UT market. But I guess if you prefer the stability and confidence PM can offer you which FSM cannot, then you should treat the difference in sales charge as a 'premium' for this stability.

Perhaps you should attend one of the FSM organized events, the biggest one would be the 'Recommended Fund' event which was held two months ago, the next bigger event should be somewhere early 2018, with some other smaller scale events. I went to the 2016 edition of the July event and most investors I saw there are older generations...Their portfolio with FSM is so large that their sales charge alone is bigger than my entire FSM portfolio so there it goes, the older ginger is spicier.

I understand your valid concern, hence my suggestion of investing the underlying stocks. Regarding PM's professional advise you expected with the 'premium' sales charge, if they are good, their funds would have outperform the peers. So it is better to educate and equip yourself with the knowledge than relying on others, which does not have your best interest in mind.

I guess auntie dasecret has given a satisfactory answer you need for assurance. It means if FSM really wind-up tomorrow, and burn every last document, your personal details and your entitlement is still registered with the fund house. The fund house (eg. Affin Hwang, RHB-OSK, Kenanga) can retrieve it for you. Unless the fund house also zaplap, then it just too bad for you.

This post has been edited by 2387581: Sep 5 2017, 07:18 PM

Q: How to apply for PRS?
A: You will need to open a PPA (Private Pension Administrator) account in order to purchase PRS funds.

Q: How to invest in PRS?

A:
For first-time application, you are required to submit the following documents:
• PRS Provider's joint account opening form and Contribution Form (For CIMB-Principal Private Retirement Scheme (PRS) Only)
• A copy of Malaysian NRIC or passport for foreigners. The front and back of the Malaysian NRIC must be on a single page (cross "For PPA only" at top left corner). Required for initial subscription, for each provider

For first-time PRS contributors, your PPA account opening must come together with PRS subscription and PPA account opening fee amounted to RM10.60 which will be deducted from your investment amount.
The purchase orders will only be processed after FSM receives the complete documents and PPA account opening fees.

more here...
https://www.fundsupermart.com.my/main/faq/1...cheme-PRS--8865

Since we are talking about PRS, for the income tax exemption, is it maximum of RM3000 per calendar year?

Also, how to check of the government has credited the RM1000 bonus into the account? Because the figures are still about the same despite purchasing PRS in February 2017 via FSM...

yes, max 3k per year for the 1st 10 years from 2012
since PPA will credit the RM1000 into your PRS fund(s)after the cut-off date of end June and December every year from 2017 to 2018.....I think I did read in the PRS thread that it would be reflected in Oct and Apr....so your case most probably in Oct then it will shows.

Depends on situations, there are many reasons:
1. For easier management. Save time of browsing.
2. Save cost. Since this April Fool, I seldom put fresh money into FSM. Because i can buy at eUT with 0% sc. My monthly topup is always >5K. By "transferring", i can buy FSM Eq fund with 0% sc indirectly.
3. Limited fund choice at eUT. So i purchase Affin Hwang Select Bond at eUT with 0% sc, then use this facility to "transfer" n buy let say CIMB Greater China (not available in eUT) in FSM with 0% sc.
4. "Manual" Transfer seldom result a losses (unless u r transferring a bond fund), because
- Eq fund up n down, i can choose when to sell (when market is green) and when to buy (within 1 month) (when market is red).
- Moreover, i can buy any FSM funds with 0% sc not only 1 single fund.
- i even can split the purchase into a few smaller one that purchase at a few different dates to reduce the risk.

This post has been edited by i1899: Sep 5 2017, 11:06 PM

Calendar year for income tax matters ends in December each year, right?