We all invest in unit trust to gain. I bought close to 5 digit worth of unit trust from Eastspring Investments (Prudential linked) Small Cap. I held it out for many years. But all I see is red, red, red in the region of 5 thousands. Trade war, Coronavirus and now change in gomen are to blame. When NAV of Small Cap is at a free fall, I switched to Bond. When I see NAV goes up, I switched back to Small Cap. Thing is, after waiting for so many years just to gain a small profit, it never came.


a) Should I still hold out and wait and wait and wait?

b) Should I take it out and put my money somewhere else?

stop fidgeting and let it ride if you are in small cap. when u keep switching here and there you lose out.

clearly you don't know how to time the market. just buy put and forget

I will be honest. I struggle to accept volatility.

you are looking at unit trust the wrong way. you shouldn't look at it or the charts in short term. look at it longer horizon. 5, 10 years.

you need to accept volatility. take it as a good time to buy.

the game is like that, you need to learn how the game works. unit trust is supposed to be very passive, so don't do much to it until it reaches your goal or it fails to reach your goal.

you got pm sir

you should set your investment objective and timeline first

equity is not doing well, so is the equity fund

i decided to diversify with bond fund instead of switch since bond fund has a more steady return
so i m investing in both equity and bond funds on monthly basis to average the cost
equity: low NAV, cheap, hopefully will rebound in the next 10, 20 or 30 years (long term) before i retire
bond: a backup if the equity fund does not rebound

i might make the switch when the NAV of equity fund goes up to a point but still continue investing in both

you should definitely compare the fund performance with other providers

Is this ringgit cost averaging that people keep telling me about? Can you explain it in simple words?

What is timing the market? I hear this a lot. Can explain in simple terms?

EPF should be your future investment

If your are fidgeting with the recent market rout, this means you're over estimating your risk level. Perhaps you should look at blue chips/dividend funds which are less volatile

dollar cost averaging (DCA)

if you invest when its bottom and the thing goes up, you earn.
if you invest when its top and the thing goes down, you lose money.
but you cannot predict up or down.
so invest every month/week/day (sometimes it'll be top sometimes it'll be bottom but they will eventually cancel each other out).
suitable for long term investors because in the long term, everything usually always goes up.

timing the market means,
you wait wait wait and read news then suddenly you think it will go up, so you fast fast buy...
then wait wait wait suddenly you see news and think it will go down, then sell sell sell...
so you keep trying to buy low sell high based on "research" and news.
usually for traders that just wanna earn some quick money instead of investors that plan for the long term.

tq

You have the following options:
1. Cash out;
2. Stay invested;
3. Top up regularly to average out the Unit price.
Please check your PM.

Most people buy at the top and sell at the bottom.

And yes, me included.

Find new hobby, dont keep checking your portfolio

Trust me, boleh gila

I already am.

ah... fellow investor who invested eastspring small cap funds... yes.. very painful to watch the performance nowadays. stay strong.

finally! somebody in the same boat. What do you plan to do?

Not sure man... feel like wasted if let go now ... I still have holding power la... but looking at the market now, macam too late to do anything... but definitely not gonna DCA this fund anymore. I'm going to try SA with lower risk profile.

Not sure if I'm going to DCA to SA soon. Feels like want to delay DCA a bit. Looking at the market sentiment now. Haiz....

What is SA?

Then a Malaysia SmallCap fund is one of the worst choice to imagine. Who recommended this to you? This unit trust is something to mix in when you are holding 90 % Blue Chips from US, Europe, Japan and Korea to create some diversity.

This product is not performing for 20 years already! Same NAV like in 2002, these days maybe even lower. But in 2013 there was a great chance to sell and make a good profit. One needs to manage his unit trust portfolio as active as a stock market portfolio.

But keep in mind the fees! He probably paid a high sales charge and is paying management fee of 1.5 % every year, no matter how bad the product performs.

My insurance agent. Fuck me, right? I switched to bond fun a few weeks ago but at this stage I lost RM6000 in these 2-3 years.

Eastspring used to be top growth fund right? Never check but is it doing really badly? Especially after this market crash,..

if Eastspring Small Cap is BAD.......
what about the others?



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As I said, Malaysia Small Caps are definitely not a suitable product for the "normal" investor. If you have a portfolio full of US, Europe, Japan, China and Korea stocks, then it can be interesting addition. If a insurance agent sold you this, then I don´t want to know the other stuff he sold you

I think a bond fund is not a good idea. The costs will kill the performance, some will charge you a management fee of up to 1.5% per year!

I also was thinking about this, but when I made my calculations I found that in the end it cannot beat a simple FD promo even these days.

any idea how many % of this small cap fund that his insurance agent tell him to allocate for his UT portfolio?

Okay, fine, tell me what fund you invest in then.

how much you invest?

I am matured investor already, many years not invest in funds.

But I read the quarterly reports of many unit trusts to know what their 10 biggest positions are and how they act.

The advantage of a tiny fish in the market, you can move very fast. While funds are container ships that accelerate and break very slowly.

My current allocation is 40% stocks, 40% cash, 20% FD. FD will always remain at this level, in the next weeks I will probably reduce the cash position to 10% buy re-buying stocks (non Malaysian).

wow,...just 40% in stock?.....when did you start to hold 40% in stock?
can really tahan that level for how long already?

Actively managed funds perform worse than passive investing overtime. It has already been proven by academic research.

how long had you been holding on to 40% cash position?

Not so long, last year I still had 70% stocks, 10% cash. But beginning 2020 the stocks exploded so I collected some gains in Samsung, Allianz, Taiwan Semi, Siemens ...

Then with corona I sold some chinese stuff like Alibaba and Tencent.

Certainly should have sold ALL, you always no better later on

Now SLOWLY prepare to go in the market again. Only SMALL packet maybe during the next 6 months. Overall should be a good average price in 2020.

thanks for sharing...
"....had 70% stocks, 10% cash".....the balance 20% in properties or forex investment or ?

No, FD in MYR, CNY and since 2020 also SGD. So, yes can call it forex also, I certainly try to sell MYR when rate is under 4.50 EUR. And sell EUR over 4.80. Worked well in the last years but now the future is unpredictable. So I started to focus on the safe haven SGD.

By the way, today I made a first tiny step back to the buying side, bought some Allianz. Probably to early, the knife is still falling, but the price now is just too attractive to resist. Also very hard not to put the gun in direction of Samsung now