1. No one escapes a down market. Unless you can pull out in time. That's why I said timing is important yet I get ridiculed for it If one buys at the peak, good luck. Need balls of steel to see your investment drop by 30%. Now, 5% drop only lots of people making noise. How to tahan if drop becomes 10%? :drools: :drools: The thing is how many people can tahan 5% drop? If cannot tahan, sure hand fast fast click sell, thus locking in real loses and then blame unit trust cannot make money.

2. Basket/pool ke whatever, they have the same meaning of collection of stocks/bonds.

If they really cannot tahan such losses, best to stay away and be safe. If one keeps locking in losses, wouldn't it be better to stay in FDs and amanah saham?
1) get good night sleep
2) small profit/positive returns also something better than keep locking in losses.

If they can stomach losses, then it's OK for them to venture into stocks or unit trust.

Just my opinion.

This post has been edited by Ramjade: Dec 12 2017, 08:34 PM

If within 6 months the fund is not making money when all funds is making money, something is seriously not right with the fund management. A few good examples:
- Amasia reits
- Affin hwang quantum
- Public mutual funds

We all see that in the past 6 months, almost everyone have a good run. But if your fund lacks behind everyone for 6 months+, it's time to do a little digging why is the fund not performing.

When during a downturn, a good fund is such fund where it fall the least when compare to it's peers.

How many people know how to select good funds? Everyone in Malaysia only know about public mutual and that's the defacto fund everyone will buy unless they do research.

Lump sum and investments and buy on dips both have it's pros and cons. When the fund/stock price is approaching all time all, still brave to put money inside? There's no safety margin there. I know I got no balls to put in when everything is all time high. Hence I seat back and collect stock dividend or just leave the fund on auto mode without further injection. Accumulate more cash for further injection when there's mass selling.

Inject more when price is dropping, inject less or don't inject at all when all time high

Of course. Why do you think I have less time here?

This post has been edited by Ramjade: Dec 12 2017, 09:33 PM

Of course we need to know about bad funds. When we know/bought a bad fund, we learnt how to spot a bad fund manager and stay away in the future. Once you bought yourself a bad fund, the knowledge will stick with you.

If someone keeps making losses, tell me does it make sense to stick with unit trust if they don't know how to select a winning fund and keep buying bad funds/stick with lousy fund manager and get normal FD returns (not even promo FD returns) only, does it make sense for them to stick with unit trust when promo FDs and amanah saham can beat them hand down? (FSM do have such funds)

Of course got but as I said, if all time high, you still got guts to inject money in? I know I don't. Hence I am accumulating more bullets for that time when I can do a significant injection. I don't need to chase short term gain of 10-15% when I and lose it all within 1 year if a severe correction does happen. Better I seat out on the 10-15% gain and wait for 10-15%p.a for few years.

This post has been edited by Ramjade: Dec 12 2017, 10:04 PM

I think we need to clarify few things first.

Let's not talk about timing and such thing yet.
1) if this particular fund is on a downtrend/stagnant while it's peers (other funds which invest in the same country/region)
are outperforming it/increases in value for 6 months+, clearly it must be something to do with fund manager. No? Simple right?

2) If all funds from that region/globally are going down, then it's a systemic thing. No escape. So it's not the fund manager's fault here.

Eg. (funds are bought from FSM and both have the same mandate to invest freely in Malaysia)
Person A buys fund A which invests in Malaysia
- Fund A gave 6% return after 6 months
Person A buys fund B which also invest in Malaysia
- Fund B gave only 1% return after 6 months

From here, clearly we can see that Fund B fund manager is not as good as fund A fund manager.
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The thing is
1) he/she didn't specify what fund he/she bought
2) he/she didn't specify whether he bought from banks/agents which incur 5.5% service charge which means if
- Person A bought fund A from FSM at x date, the fund only need to break even at 1.75%
- Person A bought fund A from banks/agents at x date, the same fund need to perform 5.5% just to break even.

Considered the eg where the person bought the fund from banks/agents exactly 6 months ago from the date of posting, as we all know last week the correction was about 5%, so if his fund just broke even (his net return is zero) + last week correction, for 6 months, he would be sitting on -5% loss.

Now compare it if the person had bought from FSM, (-1.75% (FSM SC) + 5.5% (assuming in the past 6 months, the fund gave a return of 5.5% only) - 5% (last week correction) ), his/her returns would only be -1.25% which is still in negative territory.

Considering both scenario, I can see why he/she is upset. 6 months and still (-) returns. A normal FD (non-promo FD) would have given the person better returns in 6 months.

This part here got nothing to do with fund manager as it's the same fund but the amount of loss suffered is different based on where the person buys it from.
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This post has been edited by Ramjade: Dec 13 2017, 12:31 AM

Semua nak kejar fast instant return

Must see what kind of bond. If EM bond sure la. Then must understand science behind bond fund.
Is it distribution or is it Feds increasing interest. If feds increasing interest, there's nothing you can do about it as bonds will get sell down whenever Fed's increase interest rate as interest rate is perceived to be safer than bond coupons. In order for the bond to retain the same coupon payout, value of the bond need to drop.

And since a bond fund is a collection of bonds, except some sell down of bonds, hence the bond fund is also not spared.

You may want to consider this portfolio. Only 4 funds. Modified version of boglehead ETF investing
https://www.turtleinvestor.net/asset-allocation/

4 fund approach
1 global/in this case just get US
1 local. Can opt out or get KGF/get SG just like the blogger
1 local bonds/use amanah saham fixed price fund
1 reit

My approach
1 US
1 Japan small cap
1 india
1 asia pacific
1 bond fund - for parking of warchest in case of a 20% market discount

Of course the fact that I don't pay for service charge/yearly platform fees helps too
But temptation to topup is always there considering that there's no initial service charge and no yearly platform fees.

This post has been edited by Ramjade: Dec 21 2017, 09:25 AM

Profit taking already happen in Nov. Remember when everyone panic because it started dropping?

Take profit
Fund not performing
Panic that market drop
When you need the money

Last 2 is the worse. You should sell during a bull market at your own wishes rather than in bear market.

Have your pick.

Charges, fund selection, all in one place to view all your funds.

Go through all the FAQs first so you know how to pay for your purchase, how to sell, how to do compare funds, how to contact customer service.

Only you can answer that question as it's based on your risk profile. My fund choices may not match your risk profile. Learn to read factsheets, compare funds. Different funds work in different situations.

This post has been edited by Ramjade: Dec 28 2017, 11:26 AM

If you don't want to pay fees, you got only 1 choice in malaysia
1) eUT Malaysia. Topup/Buy min RM5k during promo and no need to pay any fees

Dividend reinvestment means the fund gave dividend and dividend is put back into the fund. It does not mean the fund reopen.

This post has been edited by Ramjade: Dec 28 2017, 11:39 AM

Dividend in unit trust means nothing as it's basically exit left pocket and enter right pocket. You can count it yourself and you will find that the fund drop by x% and your holdings increase by x%

Of course if you want permanent zero service charge stuff without any min requirement also got.

But don't go chasing zero percent charges. That's just bonus.

For obvious reasons I don't do DCA. It doesn't make sense to buy when market is going higher at all time high. As they say high can go higher.

One can always choose to seat aside and hoard cash.

If one continue to buy at all time high, one will lack the money required to scoop out big units when everyone wants to sell. That's a very bad situation one will face. Massive discounts but no cash to take advantage of the situation.

If want DCA, maybe the bare min. Then when have major correction, just pump more in.

This post has been edited by Ramjade: Jan 2 2018, 11:30 AM

Yes. It boils down to guts. No guts, no action.
From 2008-2010, I believed it was just recovering. So OK to go in. But bull run already on going for don't know how many years, eventually it have to stop.
Starting of a bull run, OK.
Ending of a bull run, better be cautious.

There's nothing wrong with sitting on too much cash. Sitting on too much cash is better than sitting on no cash.

If you wait until bear market is too late already. Why? The market goes up like staircase but goes down like an elevator without brakes

You exit when there is mass buying. Not when there is mass selling. By exiting when there is mass selling, congratulations, you just lock in losses.

What would I have done? Dump in as much cash as possible into good funds and good companies which are able to go me min 10% dividend. That's why I waiting for that moment

Finding yourself without cash at such times is a very bad experience as companies are selling at good discounts and you don't have cash to take opportunity of it.

That's why 1-5% drop is nothing to shout about.

Don't forget the no of funds available on FSM SG and HK makes the world of difference between their managed portfolio vs our version.

Actually that's where you are wrong.
1) FSM SG is a very easy place to open account. All can be done online
2) In the long run, FSM SG managed portfolio > FSM MY managed portfolio as their fees is only 0.5% p.a

That's where you got wrong too. FSM SG does not need a SG bank account

All application are all online. Same goes with FSM HK. One does not need a HK bank account to open account with them.

UT should be money you don't use for 3 years+ right? So unless you are in urgent need of money, than opening account with FSM SG/HK should not even be considered at all.

HKD is pegged to the USD so how the uSD perform = how the HKD will perform.
That cannot be said about SGD as in SGD case, MAS (their BNM) wants the SGD to keep appreciating in the long term

Spread and charges is one time event (every topup) unless you keep bringing back and sending money out then it makes no sense to open FSM MAPS.

FSM MAPS fees
Conservative 0.35% p.a
Others 0.5% p.a

If can buy managed portfolio, mana tak ada duit.
FSM SG only need min SGD5k to start and min SGD1k to topup. Offer partial withdrawal too.

This post has been edited by Ramjade: Jan 3 2018, 05:56 PM