Mondays need to switch eq to bond later sale off have loss confidential of malaysia ... Explore to other region is better

Hedging Currency Risk

To hedge or not to hedge? That’s probably the question on the minds of most investors, as they look outwards for their investments and seek to add to their allocation overseas.
However, this also runs the risk of increasing their exposure to foreign currencies, leaving them potentially vulnerable to movements in exchange rates. Sometimes, the currency swings are so large that it could impact your portfolio’s overall returns.
Does that mean you should fully hedge your position? The answer probably lies somewhere in the middle, depending on the investor’s own objectives and risk-tolerance.

more in ...
https://affinhwangam.com/hedging-currency-risk/

Thanks. That article is good. I like the below especially.

"Investors investing in a fund with its base currency different from their own local currency are subject to the risk of currency fluctuations between their local currency and the fund's base currency. Without currency hedging, European investors e.g. would record a profit or loss due to the fluctuating EUR-USD exchange rate. If the fund generates a positive performance in its base currency, the currency translation into the local currency of the investor may nevertheless lead to a negative result, if the base currency has lost against the local currency during the investment period."
WHAT IS NAV SHARE CLASS HEDGING?
The intention is to reduce the impact of movements in the exchange rate between the currency used by an investor to buy shares in a fund and the base currency of that fund.
It is an attempt to make the NAV performance consistent for shareholders of two different currency classes e.g. to provide a EUR investor with approximately the same returns as a USD investor.
Note: The returns will not be the same due to the cost of the hedge (primarily interest rate differential) and short term over and under hedging due to subscriptions and redemptions activity.
AUD don't do well whenever China's economy's not well
If one expects MYR to weaken, go for MYR unhedged.

Base currency for Affin Hwang global healthscience is USD. Thus, if MYR weakened and we do not hedge, each USD will get more MYR.

See the below. You can see, MYR hedged performed much worse than USD portfolio when MYR weakened

https://my.morningstar.com/ap/fundselect/results.aspx

https://my.morningstar.com/ap/quicktake/ove...ceId=0P0001H2NC

https://my.morningstar.com/ap/quicktake/ove...ceId=0P0001H2NE

One month ago masuk RM 6K into CIMB Greater China fund, as of today profit is +8%

Today masuk lagi another RM 3.5K.

Xuzen

Thanks so much @tadashi987

I will read through the documents.

Like you, I am also not a big fan of MYR. But curious - why you would not recommend MYR-Hedged then? If I believe the MYR would weaken further, wouldn't it make sense for me to buy the MYR-hedged one?

If the  UT ( Normal RM )  you buy are in US $( Example ) Then ..... .......  Say When you Bought it in April 2020 at Rm4 = Us 1 ( Example ) . Thus say I bought RM 4000 or US 1,000 ( of UT ).
THEN In DEC 2020

Say Rm 4.4 = US 1 ( Exchange Rate ) . So I have US 1,000.  Convert it back to RM ...... I have RM 4,400.

So I have made .... Rm 4,400 - 4,000 = Rm 400 . Just Because of Currency Fluctuations.

IF the UT price have gone up..... Then double GAIN.

if you want to burn your brain cell, MYR-HEDGED means you are confident with MYR
so taking the same example, mean in APRIL 2020, when you buy MYR-HEDGED, you locked the ratio of RM4 = USD1

so come to DEC 2020, even now the ratio is RM4.40 = USD 1

you WILL NOT get RM4,400 instead you will get 4000. because your fund is MYR-HEDGED.

CURRENCY-HEDGE means you are confident and betting on that currency, it DOESN'T MEAN HEDGING AGAINST THE CURRENCY

anyone notice FSM is slower than usual?
i've purchased something on 8th april, until now it's still hasn't entered my portfolio yet
previously it's much faster around 3 days

1. It is easy to  open an account. Just fill up some details.
2. Once done, u can buy fund. No supporting doc require
3. U can use fpx or top up into cash fund before buy fund. Top up first into cash fund will make transaction faster.
4. First time buyer will get 1 month - 1% transaction sales com. So you can buy fund without incur expensive fees.
5. PM your email so can send you invite for  referral in case you want to have more discount fees. No hard feeling if you want to use or not during registration.

After 2-3 transaction, then you will familiar about the interface. Besides, there is webinar coming next week to teach newbies on how to use.