China, currently the world's fourth largest economy is set to become the world's next economic giant. Both Hong Kong and Taiwan are the potential beneficiaries of China's strong economic growth. The new Public China Ittikal Fund is an aggressive Shariah-based fund designed to capture the vast opportunities of the greater China.

- A minimum of 70% of the fund's net asset value (NAV) will be invested in the greater China region, namely Hong Kong, China and Taiwan markets.
- The fund can also invest in China-based companies listed on overseas markets such as Singapore, the United Stated of America and other approved markets.
- Equity exposure: generally range from 75% to 90% of its NAV.
- Launched at NAV of RM0.25 per unit during offer period (20 Novenber 2007 - 10 December 2007).
- Suitable for investors with aggressive risk-reward temperament.

*Promotional service charge of 5.45% of NAV per unit during offer period

This post has been edited by beginner: Nov 18 2007, 12:23 PM

It is a China Shahriah fund that has been discussed before.

Public China ITTIKAL Fund.
1)Fund Objective:
To achieve capital growth in mid- to long-term by investing in Shariah-compliant investments in Greater China region, namely China, Hong Kong & Taiwan.

2)Asset Allocation:
75 - 90% of NAV will be invested in equity market
Minimum of 70% will be invested in Greater China region (China, HK, Taiwan) market & China-based company listed in overseas market.

3) Risk Profile: Aggressive-risk
4) Distribution Policy: Incidental
5) Fund Size: 375 million
6)Unit Price: 25sen/unit REDUCED Service Charge : 5.45%!!!

7) SPECIAL DDI CAMPAIGN!! (terms & condition applied)

8) Performance benchmark
45.15% (1-yr) 93.20% (3-yr) 158.84% (5-yr)

----------------------------------------------------------------------------------------------------------

This surely going to be a hit....PM is well known for its ITTIKAL fund. This time it is combined with China some more..

PITTIKIAL is impressive fund. However, PAIF isn't that great.

I think this China Ittikial fund will be a risky fund. Maybe its risk might be lower as compared to PCSF.

Should I consider this?

sounds interesting... by the way, UTs are gaining popularity... i wonder why?

also, how much are UT's making on average per annum?

i thinking to invest in this fund!

One of the reason might be due to government's promotion through PNM and UT products.

so it's like a commercialize investment vehicle?

and returns?

Depending on the type of funds you are investing in, UT generally give an average of 8-10% return p.a.
For my portfolio, most of it earn more than that (excluding the new ones that i juz got, not enuf 1/2 yr oso)


It is gaining popularity now because not only the government are encouraging ppl to invest, it is oso becoz it is definitely a better saving instruments that can give better return than FD, saving accounts or EPF.

I would not agree in term of commerciallize investment vehicle term. It sounds like it is juz a hype or a scam. It is gaining popularity bcoz it really works n ppl are reaping the benefits from it. Besides, the government encourage ppl to invest into UT is oso part of the way to boost our economy as well

---

Added on November 10, 2007, 11:29 amme too

This post has been edited by kingkong81: Nov 10 2007, 11:29 AM

what types of fund do you recommend? there are so many out there...

i put mine in stocks and so far in average they generate 10x more than that of an average UT... but there's one dumb counter that i lost 75% of my investment... anyway, thanks a lot for the info everyone

how is UT compared to ASN?

Yes, it will definitely be a big hit, but with such a small size, it will be full very soon and most probably the fund manager is going to close it.
China market is very volatile now, and it is not wise to move into a market that has been moving upwards the last 2 years. I am not going into this fund because it is too concentrated.
I prefer an exposure on China markets, but not concentrated.

It depends on your risk appetite. The same old principle, High Risk High Return. There are Agrressive risk fund like PCSF, PSEASF & PCIF (Pub China Ittikal), there are moderate risk (PIADF, PFEDF), Balanced fund as well as low risk bond fund.

Stocks can give you good return, it can oso wipe out ur earning, like wat u said. There are a lot of ppl out there who dare not play stocks, do not know how, dun hv the expertise & dun hv the time as well, so Unit Trust give them a safer way to do investment.

ASN is oso a type of government-linked UT, mainly for bumiputra. ASN is so popular bcoz it gives attractive dividend, 7 - 9%. But i do not see much capital growth in it. ASN is like super safe UT, since government issue one mar.
But i do see more return in terms of capital growth in non-gov UT, n more availability to purchase it as well (ASN finish even b4 the bank open )

Can you elobrate more on the "too concentrated"? Thank you.

any agent here? need more information regarding this fund

i think otherwise, maybe they will keep increasing the size of the fund like what they did to far east property&resorts?

seems like Public bank is very very very busy launching new fund lately,
every 3 weeks got new fund, once a promotion for a certain fund ends, another comes up, and PB and Public are taking turns. currently lagi keng, two funds launch together, Sector Fund and Islamic Sector Fund

---

Added on November 10, 2007, 3:37 pmkawan, whats DDI?

This post has been edited by beginner: Nov 10 2007, 03:37 PM

DDI = direct debit instruction
Every month potong from your savings account. If you invest within the promotional period, the DDI is also entitled for the promotion.

I don't think they'll increase the size for this fund lah. Doesn't look like it, anyway.

----------
Achtung: Blatant self promotion ahead!
Who wants to buy PM funds from me?

By the way, did they really increase the fund size for PCSF from the initial launching size?

YES, increased several times.

http://financialpath.blogspot.com/2007/10/...than-rm850.html

latest of which approved size is 8billion units, subscribed at about RM1.4billion(~5billion units)

what is the minimum investment amount?

1k?

yes. top up minimum RM100, thats the standard amount for pubic mutual funds

China market is growing BIG! couple with the strong historic performance of Public Mutual, and the consistent return from Msia Ittikal fund, this one might be among the biggest potential fund yet to be launched!

Even though PITTIKIAL is a marvellous fund in ITTIKIAL series, doesn't mean that this China Shahriah fund will share the same success story.

hehehe just my enthusiasm bout the two big potential ler brader hahaha. Anyway wut do you guys think, china market will go thru some 'readjustment' early next year or after olympic is over?

if a person is looking at long term invest 5-10yrs, i think China is a very very market to invest in especially when ur money if managed by professionals. but if u wanna speculate 1-2yrs and cant really take heavy losses, then better stay away from this gold mountain lo.

yeah. If investor can take the risk of fluctuating index or temporary downturn and hold on to their investment 4-5 years time they'll eventually be rewarded by very big returns for their discipline and preserverance .

It relies too much on China equities, so the investment is very concentrated and focused.
I prefer an investment in a variety of markets, so the fund managers can adjust their portfolio accordingly.

Correction. I believe China market has grown too big for its size.
We cannot just say it will be one of the best funds, just because of PCSF.
You must remember, past performance is not an indication of future performance.
Times change, and tides change

It's focus is on Greater China (China, Taiwan, HK). But the money will go anywhere that has China related firms, this includes US, Europe, HK, Taiwan & Singapore.
As long as the main company is China based, it will invest in it regardless of the location of its listing.

I think past performance is a good indication of future performance. Surely, they must be doing something right if the funds are doing well all along.

On a side note, the size of the fund is comparitively small. Which means it may be easier to achieve record profits compared to large funds.
OF course, it is just my opinion. We'll still have to see it's performance when the time comes.

Sorry to differ from your opinion.
By looking at your reply, I am quite sure that you know very little in unit trust.
Sure, you could look at the past performance for a rough idea of the funds, but does it mean that the future of the markets will be as good as the past? Can you be sure that the performance in 2005-2007 to repeat itself?
Most of the markets are just below their respective highs, so how much more can the market go?

On the matter of fund size, the more units being offered, the more fund managers can diversify the portfolio.
If you have just a small number of equity, how can you ride the wave?
As an example, with the price of CPO climbing higher now, is it wiser to have a larger oil palm estate, or a smaller oil palm estate?

Sorry again, but I think you need to do more research before stating it here.
If you ask anyone here, I don't think many will agree with you

Regards

So when this fund will be launched? Anybody will be going for it?

China Ittikal fund will be launched on 20th November 2007.
The prospectus will be available after 16th November 2007.

How about the other two sector funds?

past performance is not an indication of future returns, but it definitely serves as a reference as in how gd the fund managers are at managing that particular kind of fund of that particular market. as least i think so, hence i always take past performance as a guideline before i start investing in existing funds.
and for me, i will not make the call of whether or not the current market is at its high as i, myself initially thought that china is already at its peak, but walla, after 3mths my PCSF gained more than 25%.
bigger fund size = can do more things, so everyday i pray more ppl invest in the current funds im holding, for one, it shows ppl have confidence in the fund i invested in, two, fund manager got more money to do what they want to do.



seems like end of NOV is not mistaken. personally, im still considering of whether PCSF better or buy the new fund better, somemore got china pacific fund. 3 way junction, where to head to?

It's actually two since the China Pacific Fund is a PB series fund.

Official launching will be on Tuesday (13th November 2007)
Prospectus available since 9th November 2007

is it good to invest to incoming This new fund?

market dropped today,if continue 2morrow
not sure if want to invest in this fund or go pick up some dividend stocks

You still got time to consider. Let's say it's really launched on 20 November and upon launching, it's still got 21 more days before the real trading engine starts.

Otherwise, if you can't wait anymore, you may opt for PCSF since its NAV is relatively low at this point of time.

This post has been edited by David83: Nov 12 2007, 08:44 PM

Anyway, is there a way to track the price of the NAV ?

The PM website only show the price for 'today' date. It will be useful if we can track the NAV price up to 3 months, 6 months .. for example.

I suspect the fund is gonna reach its size within the first 3 days itself. Fund size of 375 million is not a lot.

Market is in correction now. This new fund may be able to take this opportunity to enter cheap into the markets.

*disclaimer: this is just one man's opinion.

They could apply for fund size increase like what they did on PCSF.

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

Like taking a Roller Coaster ride....up down very fast...very dangerous, but very exciting & 'chikik'! Try once, always wan more

Not for faint-hearted investor

This showed how volatile the China market is. Funds like PCSF that concentrate most of its portfolio are tracking closely to the market indices performance and no doubt that PCIF would share the same behaviour. China related funds are aggressive fund and I don't plan to keep them long - mostly right after Olympics ended for few days.

advert for China Ittikal fund is out, promotional period from 20th NOV to 10th DEC

So beginner, are you going for this fund?

judging from the current situation, i think it would be wiser to chuck your money into PCSF rather than going into new funds investing in the same region, cause the PCSF already has an existing portfolio and u can buy in at a mega sale price.

what about you? you're are considering this fund?

I heard other p m agent said hit 40K headcount already of old + new p m agents around malaysia. Esspecially these 2 years, new agents (mostly are " no $ part timer ", house wifes, and existing investors) keep on signing up due to brain wxxxxsh by their uplines (upline want group sales to help climb up higher rank) with frequent program - CAMPAIGN OF RECRUITMENT and BUSINESS OPPORTUNITY INVITATION.

Sucessful agent income around 3k - 10k incruding group sales.

Other worse one, estimate less than 1.5 k - 200 hundred below per month - waiting to layoff by receiving PM " love letter " , frozen agents. I have come across few with these agents.

u may identify with their agents' codes. Old agents start with ZERO XXXX, new agents start with ONE XXXX .

---

Added on November 20, 2007, 4:59 amAdvice to take note of 1 Public funds in REIT.

Seems all china funds launched have not much different with their portfolio.

However I do suggest only 1 china fund recently launched P xxx property fund >> REIT. I have pretty good impression to this fund , and already invested RM35K, manually top up min RM300 occasionally once this fund price is low.

See if i have return 24% in 24 months.....

This post has been edited by cdbox: Nov 20 2007, 04:59 AM

Which REIT are you referring to? PFEPRF or what?

Official prospectus is out at PM website:

Public Mutual Launches Its First China Islamic Fund

Public Bank's wholly-owned subsidiary, Public Mutual launches its first China Islamic fund, Public China Ittikal Fund today (Tuesday). Public China Ittikal Fund (PCIF) will invest in the Greater China region which offers promising opportunities for medium- to long-term investors.

Public Mutual's Chairman Tan Sri Dato's Sri Dr. Teh Hong Piow said PCIF will capitalise on the solid growth prospects in Greater China. In the past five years, equity markets in this region have enjoyed a sustained uptrend amidst the rebound in global economies and strong investor demand to participate in the growth prospects of the Greater China region. "China has emerged as a major growth engine for this region apart from the U.S with real Gross Domestic Product (GDP) growth sustained at a robust pace averaging 9.2% annually," he added.

Tan Sri Teh continues to say that PCIF is designed to capture the vast opportunities of Greater China.

"The region which encompasses China, Hong Kong and Taiwan presents significant growth opportunities. The Chinese economy is projected to grow steadily at 11.2% for 2007 and 10.6% for 2008, supported by resilient domestic consumption, investment and exports. Driven by strong domestic demand and robust tourist arrivals, Hong Kong's GDP growth is set to expand at above 5% for 2007/2008. Meanwhile, GDP growth for Taiwan is projected at above 4% for 2007/2008 amidst resilient investment spending and global demand for electronic products," he said.

PCIF is an Islamic equity fund that seeks to achieve capital growth over the medium- to long-term period by investing in a portfolio of Shariah-compliant investments in the Greater China region and the balance in the domestic market. The fund will invest a minimum of 70% of its net asset value (NAV) in the Greater China region namely in China, Hong Kong and Taiwan stocks. The equity exposure of PCIF will generally range from 75% to 90% of its NAV.

Tan Sri Teh added that PCIF is suitable for aggressive investors who can withstand extended periods of market highs and lows to achieve medium- to long-term capital growth for their investments.

The issue price / NAV of PCIF is at RM0.2500 per unit during the 21-day initial offer period of 20 November 2007 to 10 December 2007. During the offer period, a special promotional service charge of 5.45% of NAV per unit is extended to the purchase of units of PCIF by investors. Investors who opt for Direct Debit Instruction with PCIF during the offer period will also enjoy the special promotional service charge of 5.45% of NAV per unit for as long as the Direct Debit is active. Terms and conditions apply. The minimum initial investment for the fund is RM1,000 and the minimum additional investment is RM100.

PCIF is distributed by Public Mutual's unit trust consultants. Interested investors can contact any Public Mutual unit trust consultant or call its Customer Service Hotline at 03-6279 5252 for more details of the fund.

Public Mutual is the largest private unit trust company in Malaysia and it currently manages 53 funds for more than 1,350,000 accountholders. As at 31 October 2007, the total net asset value of the funds managed by the company was RM26.7 billion.

URL: http://www.publicmutual.com.my/article.aspx?id=6382

An accompanying article from PM for promoting PAIF:

Growth in the Greater Midlle Kingdom
http://www.publicmutual.com.my/page.aspx?n...art_gitgmk_pg01

But with China hosting the olympics next year, will the China Bubble burst after that and PCIF get stunt?
I think the risk is quite high for this fund.

Well, it's up to you to keep on holding PCIF after Olympics 2008. PM rated this fund as Aggressive while PCSF as High Risk.

PCIF - Aggressive
To achieve capital growth over the medium to long-term period by investing in a portfolio of Shariah-compliant investments in the greater China region and the balance in the domestic market.

- A minimum of 70% of the fund's net asset value (NAV) will be invested in the greater China region, namely Hong Kong, China and Taiwan markets.
- The fund can also invest in China-based companies listed on overseas markets such as Singapore, the United States of America and other approved markets.

PCSF - High Risk
To achieve capital growth over the medium to long-term period by investing in a portfolio of investments in the greater China region namely in Hong Kong, China and Taiwan markets and including China based companies listed on overseas markets. The fund may also invest in companies listed on Bursa Securities and other foreign markets which have significant or potentially significant business operations in the greater China region

This post has been edited by David83: Nov 20 2007, 09:12 PM

china's govn is already trying to control the bubble by increasing interest rates, and there are rumours saying that there are more to come. so hope for the best... i think china govn will try its best to drag any major correction(if any) after olympics, cant imagine what will happen if recession comes before oylmpics.

That's why if I really wanted to get a piece of cake in PCSF and PCIF, I planned to keep them till Olympics (short term).

This post has been edited by David83: Nov 20 2007, 09:14 PM

FYI...actually both PCIF & PCSF is categorised as HIGH RISK in their risk profile.

The investor profile is for those ppl with AGGRESSIVE RISK temperament....

Basically, both are the same in risk category...it should be, since both oso have same investment market & strategy, does not make sense if PCSF is in lower risk category

Well, I'm quoting the information from PM website.

Sometimes I oso get confused by it

But these funds are more to middle and long term investment bro

---

Added on November 20, 2007, 10:38 pmcount me in too for the confusion.
need more info

This post has been edited by stupidbump: Nov 20 2007, 10:38 PM

Yes, they should but China market is not as stable as compared to other regions.

If you said other PM funds, I could agree with you but personally if I bought PCSF and PCIF, I'll exit it when it reaches my goal of at least 10% return or the longest I'll hold them is till Olympics.

My strategy may not suit your investment strategy. I could be wrong.

i think funds are only divided into three basic categories (i think PM could have done better in this matter, seems like their prospectus are not standardised, some use aggressive some use high risk)

low risk(conservative)
medium risk(moderate)
high risk(aggresive)

most low risk funds are bond funds, fixed income funds
most moderate risk funds are balanced funds
equity funds are usually classified under aggressive category


need more info on what?

i totally terbalik with u, i look at china funds as very long term investment as i believe that in the long run(>5yrs) investment in china will never go wrong. cause in terms of growth, i think china has got to be one of the top countries(as well as india).

Balanced fund is consider as income fund (though they did not promise annual return) and in Moderate-conservative category. Bcoz 40% is in fixed income securities investment

Moderate risk equity fund like PIADF & PDSF, is oso consider income fund, but in moderate risk.

there is no fixed income funds. Income funds r those that can give annual income, like moderate risk one & balanced

The risk profiling basically depends on the investment policy & objective.
Hence, in Equity category, we have high risk like PCSF & PCIF, we oso have moderate risk like PIADF, but both are mainly investing in equity, juz with different objective & strategy. High risk majorly going for capital growth, while moderate risk income fund go for annual income & respectable capital growth

http://www.publicmutual.com.my/page.aspx?name=PBFI

Income fund is a quite confused term here. For Public Mutual, many agents categorize funds which are giving annual distribution as income fund. However, for other UT company, this is not. For example, OSKUOB Income Fund is actually same as PMMF, which has the lowest risk.

PB Fixed Income Funds is the name...does not mean the fund will provide you with a fixed income yearly. It is giving annual income but not fixed. In any case it is a Bond fund...not fixed income fund.

lekk88 u r right, it will b easier to say that fund that give annual distribution is consider income fund in a more general term. Like u say, diff UT company diff way of categorization...

i didnt mention it will provide fixed income, did i?
fixed income funds refers to bond funds, to me .
as bond funds invest in fixed income securities hence termed as fixed income funds(maybe there is a confusion here with the way i termed it).

This post has been edited by beginner: Nov 21 2007, 11:42 AM

So conclusion, is this china ittikal fund got petential growing and held return???
This fund is actually like a portfolio handle by professional to help us to invest right??
Is it possible to make losses?? For eg liek i invest 2200 and return 200 let say...

Plan to invest in this fund but not sure what is it....

Every fund has their own potention of growing, no doubt about that. But every fund is also stand a chance of making loss if market and eonomy condition turn bad so it is possible to make a loss as well. So judge the risk whether you are willing to take. In investment, it is always a trade off, no free lunch, want higher return need to expose higher risk. Don't want higher risk then settle for lower return.

Low risk low return, high risk doesn't mean must be high return, it can be losses as well. Just in market condition favourable, it is a higher return.

Overall, in long term most funds (remember not all) generate an ok return rate generally but if one buy or the fund being lauched at when peak time, then it will have much much difficulty to generate return.

---

Added on December 5, 2007, 10:32 pmYes, there is a fixed income investment, that's called FD.

This post has been edited by cherroy: Dec 5 2007, 10:33 PM

so if we invest about 5k let say, they the fund is making loss, are we still getting our original 5k or we get less ?

Since it's not capital protected, you'll get lesser. And do remember the upfront service charge of 6.5% or 5.45% (promotional during initial offering).

There is also annual fees chargeable by UT company.