"Past returns are no indicator of future performance."

There is also the introduction of fixed income products in KDI Save vs pure FDs such as short-term commercial papers.

KDI never publish anything about their KDI Save underlying holdings unlike typical money market funds, nor are there any risk metrics available for inspections. One should not assume it's FD in any case.

Law of one price: there is only one risk-free rate a market can offer. Anything higher than risk-free rates carry unseen and untold risks in one way or another.

This post has been edited by TOS: Oct 3 2022, 05:41 PM

Simple, just open a blank excel file and crunch in the numbers and the relevant rates for each tier. Sum up the interests from all tiers and divide by principal value * 100%.

You get the "summary rate" which you can compare with your earlier rate after accounting for compounding/simple interest computation.

This post has been edited by TOS: Oct 3 2022, 11:39 PM

These give you some idea of the risk.

https://bixmalaysia.com/investor-tools/bix-search

Select "corporate" as category, residual tenure "1 year", issuer date from any time you like, say beginning of this year.

Look for those bond/sukuk name entries with ICP or CP in it and specifies the day to maturity. (e.g. 30/31D for 1 month, 91D for 3 months etc.)

Reference: https://fast.bnm.gov.my/fastweb/public/Fast...taskId=PB031300 (List of instrument codes)

You better pray KDI didn't venture into instruments with >1 year maturity.

This post has been edited by TOS: Oct 12 2022, 09:41 AM

That's a very misleading statement. Lehman Brother's MMF broke the buck before the firm itself went broke, for instance.

Of course that was institutional risk. For MMF that hold short-term corporate credit products like commercial papers, short-term loans etc. there is corporare risk if the liqudiity of the companies are not strong enough. And even before the papers mature their market value may have dropped significantly due to adverse conditions, in which case the MMF will suffer significant capital loss.

These days to "enchance yield", MMFs have already shifted to the riskier end of product offerrings. Make sure you read the prospectus and product highligh sheets to carefully inspect what kind of instruments (and their maturities) the fund is allowed to invest into before dealing any further.

Low risk != no risk

Too often people underestimate risk metrics...

This post has been edited by TOS: Oct 14 2022, 09:04 PM

Since you correct to "usually", that is ok.

Accounts can be manipulated. This happens more often than you think, even for publicly-listed company.



But ok lah enough off-topic matters. As long as our fellow KDI users know what kind of risk they are taking, that's fine.

I understand that you have been starved of yields for years and desperate for higher returns... Just make sure you don't get too carried away by all sorts of marketing gimmicks.

Risk and return always come together. And there is ONLY 1 price and 1 yield/expected return for 1 security. Law of 1 price. Anything higher than risk-free rates carry "unseen" or "probably ignored" risks.

Uhmm the short-term rates in Malaysia hasn't climbed that high yet... This is not an SGD or USD product...

https://www.bnm.gov.my/government-securities-yield

https://www.myfdrates.com/

Before you get too happy, where is the extra yield coming from... you can figure out yourself.

In pursuit of ever-rising rates, one shall never lose sight of the risks accompanied by it, if any.

This post has been edited by TOS: Oct 19 2022, 02:39 PM

Burn cash to capture market share, competitor driven out, then slaughter your customer!

Embrace, Extend, Extinguish!

Not negative at all lol

It's nothing personal Sonny. It's strictly business.



Market share gains can't be inferred directly from balance sheet lol

By the way, Kenanga is good, nothing wrong. I am just commenting on the heated competition between them and Affin Hwang for robbing market share for MMF products. I also wonder how SC approves the marketing of such products without requiring Kenanga to disclose the underlying fund's documents. At least versa told you the underlying (Enhanced Deposit) fund and you know its holding details, volatility etc. Things can be quantified a lot there.

Fair disclosure: I don't use either product.

I hardly follow any trends. In fact I am opposite the trend. Everyone jumping to KDI and Versa but I advise people to be cautious.

Yup, MMF has been around for decades. It's just that previously the minimum denomination is high (25k or 50k MYR) and was meant for HNWIs to park their cash temporarily. These MMFs used to be packaged like mutual funds to be sold by intermediaries like financial advisors etc.

These days, in line with technological innovation, the fund management companies repackage their products and sell it themselves to bypass the middlemen. But I still think the regulators hasn't done their supervision good enough. This whole KDI thing is still a blackbox and no one knows where the 3+% p.a. returns come from.

Ok lah as long as you are happy go ahead with what you like.

That means you are ikan bilis no more... you become ikan paus already