i have invested in stock market and i cant just peace of mind with the fluactuant stock price.
im looking into mutual fund n unit trust.

what are differences

how you all select fund to invest.

many thanks

Unit trust or Mutual funds.....

Unit Trusts or more commonly known in the United States as mutual funds, are a form of collective investment that allows investors with similar investment objectives to pool their funds to be invested in a portfolio of assets.
These portfolio may include asset classes such as:
Transferable securities;
Cash, deposits and money market instruments;
Unit/shares in collective investment schemes; and
Derivatives.
Investors or unitholders do not actually purchase the securities in the portfolio directly, rather the ownership of the fund is divided into units of entitlement. As the value of the fund increase or decrease, the corresponding value of each unit increases or decreases accordingly. The number of units held depends on the amount of money invested as well as the unit price at the time of investment.
https://www.eunittrust.com.my/Home/Edu_IntroUT

What should I consider before investing in a unit trust?
You should always consider four factors i.e. your investment objectives, risk profile, investment time horizon and your affordability at any one time.
https://www.eunittrust.com.my/Home/FAQ

to know more...do check out this existing thread and post there for more responses....
Fund Investment Corner v3, Funds101
https://forum.lowyat.net/topic/2601692

This post has been edited by MUM: Feb 15 2020, 03:53 PM

If you invest in stock market and can't have peace of mind, what makes you think you can have peace of mind with unit trust?

Unit trust buy stocks too and they must be >95% invested. So if market goes down, expect unit trust to follow. If market goes up expect same stuff. Sounds familiar right?

Now how to have peace of mind investing in stocks?
1. Do not use leverage and margins.
2. No penny stocks.
3. Focus on big strong companies.
4. Go for dividend growth investing
-invest for dividends where money will come in every quarter or half yearly. Regardless of market condition dividends will still come in.
- best thing about dividend growth investing is dividend will increase yearly without any input from you.
5. Do not see. Do not touch. Once a year pump in money into your selected companies. Done.
6. Buy and hold. Get the selling thought out of your head.

I have been doing that. No loss of sleep. Money comes in every few months. No need monitoring. More living life, less worries about investing.

If you can't stand price fluctuation you go no business in stocks or unit trust. Your only options are
1. FD
2. Amanah saham
3. Epf
4. House.

This post has been edited by Ramjade: Feb 15 2020, 06:59 PM

I think they mean the same thing, if you looking for stability and a return slightly higher than FD, you may consider investing in bond fund.

Isn't Amanah Saham the same as Unit Trust / Mutual Fund ?
There is also the choice of REIT

-----------
There is also the choice of Exchange Traded Fund (ETF)

Amanah saham is unit trust. True. But is different. The fixed priced funds are priced at RM1.00 per unit. You buy and sell at RM1.00 per unit regardless of market condition.

Yeah tell that to him/her. He can't stand price fluctuation. With reits and etf price fluctuation is there. Cannot run away.

Most Malaysians are just too lazy to figure out how to open overseas brokerage to buy ETF

Yes, very unique fixed price.
Cannot stand price fluctuation then I should not have mention REIT and ETF.
I still cannot find way to by pass BNM's 25k TT limit. Any tips how to figure out, can PM?

don't do it with cash (physical currencies (domestic or foreign currency) and bearer negotiable instruments such as travellers’ cheques) still have the RM25k limits in the Cash Threshold report (CTR)?

I am not familiar with other instruments so if you could clarify? Any blog links perhaps?

try this...
http://amlcft.bnm.gov.my/AMLCFT05b.html

https://www.soyacincau.com/2018/12/31/bnm-r...hold-reporting/


This post has been edited by MUM: Feb 17 2020, 10:40 AM

Thank you.
Online transfer is also controlled. Still no solution.

That's cash. Don't use cash. Use normal bank account.

Thank you. Will look into this. I tried before but the restriction came from the bank with the bank account. One bank officer even refuse to guide on a service that is listed by the bank. Anyway, thank you for reply.

if you want to avoid the hassle, you are encouraged to transfer electronically from bank to bank.
per that provided link

btw, abit more info are needed to be more precise....

transfer to overseas or within Malaysia?
how much money are you talking about?
transfer for your personal a/c to another company in Malaysia or overseas?
or transfer from your personal a/c to another person's a/c in Malaysia or overseas?

btw, found this...
There will be no maximum limit for Foreign TT transactions submitted through Branches.
(if you met the criteria)
https://www.cimbbank.com.my/en/personal/sup...ng&n=remittance

This post has been edited by MUM: Feb 17 2020, 10:59 AM

eft is totally new to me..
sigh .. im not exposed enough to financial knowledge.
please enlighten me . tq

ETF is like unit trust. Difference between them is
unit trust there is active trading - fund manager buys and sells stocks/bonds and attempt to beat a benchmark. Usually the index
There is always a management fee. Fee range from 1.2-2%p.a regardless of market condition which is automatically deducted from the price you pay. You won't see or feel it as price of fund you pay already included the management fee.
A unit trust is never real time.
What you price you see today is few days ago price.

ETF is well basically the index. Index are constructed usually based on market capital of the company. The company with the largest market cap gets the biggest pie.
Every quarter or half yearly companies with lower cap will be removed from the index while those with a larger cap will take it's place. That's why theoretically weak companies get replaced over time. ETF price is real time and they are listed on various exchange like a stock. The price changes every second. Their fees is very low about 0.03-0.1%. Low fees is great as overtime those 1.2-2%p.a unit trust fees is huge.

The index is the one unit trust attempts to beat. Are they successful? Yes and no. Good fund manager must beat the benchmark consistently over a long period of time.
Yes there are some funds with such good fund manager. Majority no. That's why you see majority of unit trust give you -ve returns, 2-3% returns only = worse or same as FD.

Over long time 10-30 years, market always go up. Is that true with unit trust yes and no. The good ones will go up. The bad ones will go down.
That's why people said buy ETF. You are getting market performance. You won't beat it but you won't lose to it.
Is it good?
Depends.
Yes is good if
1) you can if get rid of your emotion and buy certain fixed amount every month regardless of price
2) you have holding power, able to hold 10-30 years
3) able to stomach volatility. ETF price is basically market returns. Market fluctuate up and down.

ETF investing only works in US, EU, UK market not asian market.

So how to buy ETF?
1. DIY
- open a broker and buy it off the exchange.
- if you use local brokers, beware of expensive commission, dividend fees, quarterly platform fees.
- know where your ETF are demociled
- I will never suggest to use a local brokerage. I myself use Interactive broker (whitelabels of it -Tradestation global), then again I don't buy ETF
All about ETFs / Foreign Brokers, Exchange traded funds

2. Robo advisors
- basically hiring a company to buy etfs for you on your behalf
- the only good ones in malysia are stashaway or mytheo.
- they have programs which help to smoothen out the drop in market at expense of returns.
- if your portfolio value does not drop much, your returns over time also does not goes up much
- if you want good returns, have to be prepare for market drop.
Stashaway Malaysia
myTHEO

Of course back to your original post, you need to have stomach for the volatility. Ask yourself what happen if market drop 30-40%. What will I do. There is no other way. You want higher returns, have to take higher drop = higher swings in price.

PS I was one like that scared of market loss. I was also a noob in finance. No one taught me anything. I read financial blogs, fianncial forums and books. I never spend money on any course. They are all snakeoil.. After a while I looked back and think is silly of me. I can still be invested without bothering about up and down of price because I buy, hold and never sell. Price drops = opportunity to get stuff for cheap. Who is going to give you damn good discount. Something to think about.

This post has been edited by Ramjade: Feb 22 2020, 04:32 PM

I thought Bursa has ETFs too?

Practically useless.
No liquidity. Buy and sell price too big.
Too expensive for ETF.
No quality.
S&P500 is the benchmark for ETF

hi shyityng, mutual fund (if you are referring to Public Mutual fund) is the unit trust fund that you buy from Public Mutual. basically it is unit trust also. there are a lot of fund houses that you can buy from too asides from Public Mutual. If you don't mind to open an account through eUnittrust, do let me know . at least when you buy the funds through this, the agent commission fee is waived.

Do most of you use epf for UT?