Hello

I am quite new to Unit Trust and diversifying my fund.I would to change my strategy to be more aggressive. Thus, I would like to increase the allocation in equities but how do one properly know if the funds are well diverse?

For the moment, I have :
Selina : 5.1%
Ponzi 2.0 : 3.4%
Titans : 5.1%
KGF : 4.3%
Manu India : 5.1%
RAIF : 8.5%
TAGF : 4.3%
Esther : 21.4%
RHB EM 42.7%

For the moment, I focused more on Asia Pacific & Emerging markets since it's rated five stars by FSM. I touch the developed markets via TAGF and Titans. The thing is that I don't know I increase my portfolio for developed markets via TAGTF.

Yes, Technology tends to be stable but it is partially influenced by the developed countries. Any advices?

This post has been edited by Gabriel03: Jun 17 2017, 09:24 PM

Hey everyone,

I just want to share my bad experience regarding FSM Managed Portfolio for your information.

I have been investing regularly with FSM for nearly 2 years. My DIY Portfolio is 100% equity while my Managed Portfolio is Moderately Aggressive (75% equity & 25 bond).

For the whole duration, I have noticed that DIY portfolio had better returns and incurred less loss compared to the Managed Portfolio.

7th Dec 18
I have decided to cut my losses and sell 100% MP. I know that 1 year+ is too short to judge their MP performance but I have decided to invest it elsewhere.

11st Dec 18
Confirmation of the sale. However, I noticed that roughly 10% of the amount is missing. Contacted FSM Customer Client and they informed that a portion is under rebalancing and he told that the remaining portion will be automatically redeemed after the rebalancing action is done.

19th Dec 18
FSM banked in the proceeds from the sale made on 7th Dec 18.

24th Dec 18
Still no info of the remaining 10%, I contacted FSM to know when I can get the money.

26th Dec 18
FSM replied and informed me that they will sell the remaining units on the 27th Dec 18 which is T+13 after my first sale order. I don't believe that the rebalancing action took longer than my first sales order which was T+7.

27th Dec 18
I asked FSM if they have forgotten their commitment to sell the remaining units once the rebalancing action is completed. They replied that it is standard FSM practice to sell it at the remaining units at the end of the month. How convenient?!

I replied that I don't see such practice is stated on their website and it was contradicting what his colleague told me (verbally and black & white). He apologised and thanked me for the feedback. They will improve and offered me 0% sales charge for the next order which I refused as a sign of protest.

So, in the end, the remaining units have suffered additional decline especially on the 24th Dec 18 and i have to wait another 7 working days to get the rest of my money.

Are you sure that he said management fee? I think that agents only talk about sales charge which is a one time thing. Normally, agents or banks charges up to 5.5% of sales charges (depending on the TnC of the fund). The sales charges gives the commission to your agent. So, if it's 3% of sales charge, maybe it's a promotion? Only online platform like FSM and eunittrust charges cheaper. Only sales charges is not taken into account in your fund's return.

For the annual management fee of the fund, the money is taken on daily basis (working days). If the management fee is 1 % per year and you hold 20k of the fund, then everyday, you'll get charged 1%/365 X 20k. You don't normally notice money being taken out as your fund value fluctuate also with the market sentiment.

The fund's return already taken into account all the fees like management fee, trustee fee, etc. If it's 4%, then you get 4%.

For Nomura i-income Fund, do you have a reference index or something to anticipate the direction, it's going?

For example, if invest in equity unit trust related to China, the stock market sentiment there is a good indicator.

Considering the current political fiasco, is it a good time to buy Nomua i-income Fund since they are heavily invested in government bonds?

Or bond fund do not work like equity funds?

If you buy unit trust that focuses on foreign market, you know that your money is converted in foreign currency to be invested. The NAV fluctuate based on investment value + currency exchange.

So, if RM depreciate, then the return tend to be high. You can choose to hedge the fund to SGD or USD but in the end, it depends on where you want to use the fruit of your investment. If in Msia, then it doesn't change much.

However, Msia has more unit trust with higher annual management fee because the feeder fund also need to gain some profit.

Why are bond funds (Nomura, Amanahraya, etc) bleeding for past 1 week?