what's the benefit if I invest RM100K in PM??

paiseh la u guys say liddat. dzi921 so san fu compile everyday, of coz must save and make use of it mar 

but i lauya investor hahahaha  know nuts de. u guys are the pros 

So what u guys think? are we going into recession? 2 days of green more red coming 

Wah today all markets up so fast de due to interest rate cut @@ any pro could pls share ur opinion on normally how long this positive effect of cut interest rate will last on the markets? Normally this rise will be juz temporary or quite permanent de? hehe thanks =)

If you reinvest your distribution, your avearge unit cost will be lowered down.

Reinvest at NAV only save you a commision to agent but
would not increase your total fund value. So no financial
gain for any unit trust distribution.

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Added on December 3, 2007, 11:11 pm

What compound interest you were refering to?

I think you get a wrong idea on this. There is no such compounded interest in this distribution situation. If the money is not given back to investors via distribution, fund manager still have these money to gain more money. There is no benefit to investors in terms of value of the portfolio.

Example:
Fund NAV RM1.10
Distribution RM0.10 per unit
If you have 1000 unit (value is RM1100), you will get RM100 for distribution. After distribution, the fund NAV will be RM1.00 ( I think you know the fund NAV will be adjusted accordingly after the distribution). After reinvest, your unit will be less than 1100 unit (because of a small portion of distribution will be taxed). The value you have after distribution still RM1100 or less than that.

What's the benefit of getting distribution, and some more we will be taxed on the distribution?

I don't think we need to consider much about this distribution. This distribution is only useful for fund manager and some investors who need some cash every year. If you're not thinking want to get the payout of distribution, don't choose fund by looking at the distribution. Unit Split is much better than distribution for investors' benefit.

Yes, distribution or not has not much effect. It is still back to square one unless for cash flow situation.

However, unit split is even more meaningless compared to distribution. Nothing is changed in unit split, just some psychology feel 'more' about the unit held, in fact, value or NAV won't have any effect.
I knew unit split generally will be implemented if NAV increase quite signficantly. For example a fund NAV increase from RM1 to Rm2, generally fund house will opt to split it let say 1:2 and make the NAV back to Rm1.00. But in fact, whether got unit split or not, it is actually carrying no real meaning as you still have RM2.00 in total whether got split or not.

What's matter is the NAV incremental over the time which mean its portfolio is making money over the time.

Ok, I just made a full switch from PSBF into PCSF

Hang Seng now  -948.45 (-3.44%)

A lot of blood...

HSI dropped 285.87 (-1.02%) to close 27,842.93 today.

Well yesterday NAV also didn't change much: +0.0002

There might be a rally when it's toward CNY 2008 and then some minor correction may happen after that. Just my personal view ...

by psychict:

Hello all! Newbie here... Read thru all 41pages of all the sifu's discussion and learned alot! Thx!

A quick question, do yous still think that PCSF / PCIF is going to shoot up more? Some analysing would be helpful icon_rolleyes.gif

Long term gain in this fund or others? I'm looking at long term maybe as u said up till Olympics.

The service charge of 5.5% ... does it affect existing funds when we buy an existing fund or when we perform a top up to the existing account?

Any one still holding the PCSF and PFEPRF beside me.

Bull before election..... well, the tradition is switch after CNY... I wont hold out for a bull before election.... probably be cautious after election.

What is the best fund to switch out to? I know the safest is Money Market Fund but it is worse off than putting back into EPF. Is it possible to switch into PBOND? Or is it closed already?

I think among the Bond Funds... PBOND is the best... correct me if I am wrong.. at least within the Public Mutual stable.. .

I think the service charge for promotion funds is 5%...pls confirm.