It all depends on your own goal, how comfortable are you in going into this agrressive risk fund. If you are risk taker, maybe it is good for you, if not go for moderate risk income fund. Remember, return always comes with risk. Do not jump into the boat juz bcoz u see everyone is making money there, see whether it suits your profile or not.

One more point is, when you invest in Unit Trust, you are not looking at short term gain. We are at least looking at 1-year and beyond. You have to withstand the market-up & down (especially for aggressive risk funds) in order to get the return.

Set your target, how much return you expect for the fund, once it reach there, then do the switching or repurchase. This might be a better strategy for aggressive risk fund (prevent the sentiment & greediness )

You actually can check the funds past performance in the website. You can click on the "fund performance", from there you can set the interval of performance you wan to see. They give results in percentage though, so u juz need to do some simple calculation to get back the unit price.

This post has been edited by kingkong81: Nov 12 2007, 10:05 PM

Hi kingkong81,

Thanks for your reply.

However, I still don't really understand how the unit price can be figured out.

Well let's take an example here,

Today, PSF NAV = 0.8653

From the graph,



How do you get the unit price rough out. For example, I would need to know the NAV price initially when it's launch and the NAV price at year 1994.

Kindly do guide me. I'm sure it will be plenty useful for all of us here.

It seems like I forgot something important. In between those periods of time, there are unit splits & distribution, which will affect the calculation of the return & price. So, it is getting very complex to calculate. It will work for shorter period of interval (few months) & provided no unit split/distribution in between. I guess using the percentage alone to determine the past performance is ady good enuf

paiseh paiseh

Even my program database did not store the fund price 26 years ago.

P/S: Mayb good assignment to find the formula to calculate this

This post has been edited by kingkong81: Nov 12 2007, 10:56 PM

Well. it's okey. You have tried your best!!

Anyway, UT also got split ? Woh ..

But couple months ago NAV price, I don't think the changes will be too significant.

Haha...sorry, didn't make much help oso over there.

Basically Unit Split does not give much benefits to unit holders. Unit split (eg. 10 to 1, for every 10 units you will get 1 bonus unit) basically is announce to lower down the unit price, in order to make it more attractive to investors, especially new investors. So more money will b pump into the fund for the fund manager to expand/invest in the market.

Though the unit price is lower, the total value of your NAV is still the same. The price is simply lower, because there are more units in it. Eg. Your total NAV value is RM10000 with 10,000 units (RM1/unit), unit split 10 to 1, the total units you have now is 11,000 units, but your total NAV is still remains at RM10000 but price is now at RM0.909/unit.

But in long run, one thing you actually benefited is when distribution is announce, you will get more simply because you hold more units.

P/S: Since can't calculate for u, explain a bit on unit split as return

This post has been edited by kingkong81: Nov 12 2007, 11:40 PM

I think you can get the past NAV from FP advisor?

The FP Advisor might have it, since it does all the calculations on the returns.

Currently still did not manage to get my FPA, the course is always full one. Have to attend the course then only can get the CD though it come together with CAMS.

KingKong,

One last question, what is(are) the factor/s that influence the NAV price ?

Since you mention that the numbers of the units can increase or decrease .. but the total NAV will always remains the same.

So my roughly guess should be .. it's control by the total numbers of the units that exist in the market currently .. and the buying/selling pressure of the unit holders.

You got the incorrect concept my friend.
It is not the same as stocks, where it is based on market demand/supply.
The NAV of each fund is based on the performance of its portfolio.
Each of the funds will have a set of stocks that it invests in, so the NAV will fluctuate in proportion to the movements in price of the stocks.

IC, Jordy. Thanks for the information.

In that way, it could be quite risky. Well, if the stock market is hit hard, once the stock price fall from RM10 to RM1 for example .. you could imagine what will happen to your NAV values.

Anyway, I have yet to see a rapid changes in the NAV values. Therefore, I might miss out something. Isn't it?

It depends on the fund portfolio. I think PCSF has a greater NAV change due to volatility behaviour of China market.

Volatile indeed
PCSF 0.2685 -0.0100

WinDs,

If the NAV is based on supply and demand, then it will be more volatile and risky. Different funds have different level of risk. Equity fund is high risk, where dividend fund is moderate risk, etc...

If you want to calculate the NAV few months ago where there is no distribution/unit split in between, you still can get it where you have the current NAV and the percentage of growth.

If for longer period where distribution and unit split happened, it's not accurate to look at the NAV.

Unit trust fluctuation can be consider less than stocks market. The fund manager have a large fund at his disposal to invest in the market. With this large amount of money, the fund manager can afford to diversify their investment portfolio in order to reduce the risk of the investment. Therefore, Unit Trust fluctuation is less & as well it is less risky than direct stock investment.

(Imagine, the FM invest in 20 stocks, 12 of the stocks went down, the other go up, so, in average, the loss is less. Compared if u only can buy 5 stocks, 3 of it go down, ur loss is more)


I guess all the others hav made good explanation to the NAV prices

er market correction now doesn't mean you will enter cheap as the fund would only start trading next month

ya that's correct

Guess that entering PCSF now would be a better option since its NAV is nearly touching its initial NAV.

PCSF NAV used to drop below its inital NAV once two to three months ago.

This post has been edited by David83: Nov 13 2007, 08:21 PM

Is it true after Olympic game next year the market price of Ittikal China Fund or China Select Fund will not b as stable as predicted before olympic games? so far izit true?

Now the price of PCSF oso not stable...remember, PCSF is an aggressive fund, therefore the fluctuation is higher than other funds. So does the coming PCIF

Wat ppl are predicting is the economy of China will slow down a bit after Olympic...but all this is still predictions. No hard facts or indication that it will happened.

The risk is there...

I do agree on the instability of PCSF. It may be directly related to the volatility of China market. PCIF would experience the same since both are investing heavily at that region.

PCSF 0.2702 0.0114 +4.40%
yes very volatile indeed




This post has been edited by beginner: Nov 15 2007, 08:44 PM