i think unit split nothing to do with rating.

if.....at least 15% of the principal amount...this could be the income, not the capital gain. for investment returns by capital gain is more important than income, if u want to grow ur money via investment.

example:

rm10k x 15% = RM1500.

if income, the value will be rm10k - rm1500 = rm8500

if capital gain, the value will rm10k + rm1500 = rm11500.

so, u hv decide, u want to go for income or capital gain or both. read the prospectus abt the fund objectives.

nice explanation frm pink spider.

to make it simple, whenever u get the income, your value will be reduce by the amount of income.

this is another one for u..... take note, income in UT call distribution.

Total return in UT = income distribution(if any) + Capital gain/loss.

Income Distribution VS capital gain.

The effect of income distributions if cash out.


Public SmallCap Fund.
Risk Factor : Aggressive.
Financial year : 31 August
Launch Date : 13/06/2000

If RM10,000 invested in this Fund on 13/06/2000. After the service charge, 20,000 units purchased at RM0.470 for the price RM9400.00

Current value/returns as at 01/12/2010:
Public Smallcap Fund = RM40,931.95 with market price RM0.8732 per unit.

Public SmallCap fund managed to give up to RM40,931.95 (309.31% in 11 years). with average simple return 28.12 annually.

Actual Profits = RM40,931.95 - RM10,000 = RM30,931.95

Total return = RM30,931.95 / RM10,000 X 100 = 309.31%

Average simple return 309.31% / 11 years = 28.12%

Since the distributions for RM10,000, re-invest back (Compounding interest) , Public Smallcap fund managed to give RM40,931.95 as at 01/12/2010.

tis is call capital gain over the time.



Let see what will happen if the distributions take out as CASH. (No Compounding interest to work for money)

2000 - No distribution given for Public Smallcap fund

2001 - No distribution given for Public Smallcap fund

2002 - RM0.040 given for per unit.
Total units purchased X Rm0.040
20,000 X Rm0.040 = RM800.00 (Taken out)

If the distributions taken out, the remaining units in investment are still 20,000 units.

2003 - RM0.035 given for per unit.
Remaining units X Rm0.035
20,000 X Rm0.035 = RM700.00 (Taken out)

If the distributions taken out, the remaining units in investment are still 20,000 units.

2004 - RM0.050 given for per unit.
Remaining units X Rm0.050
20,000 X Rm0.050 = RM1000.00 (Cash out)

If the distributions taken out, the remaining units in investment are still 20,000 units.

2005 - RM0.060 given for per unit.
Remaining units X Rm0.060
20,000 X Rm0.060 = RM1200.00 (Cash out)


If the distributions taken out, the remaining units in investment are still 20,000 units.

2006 - RM0.050 given for per unit.
Remaining units X Rm0.050
20,000 X Rm0.050 = RM1000.00 (Cash out)


If the distributions taken out, the remaining units in investment are still 20,000 units.

2007 - RM0.090 given for per unit.
Remaining units X Rm0.090
20,000 X Rm0.090 = RM1800.00 (Cash out)


If the distributions taken out, the remaining units in investment are still 20,000 units.


2008 - RM0.080 given for per unit.
Remaining units X Rm0.080
20,000 X Rm0.080 = RM1600.00 (Taken out)

If the distributions taken out, the remaining units in investment are still 20,000 units.

2009 - RM0.080 given for per unit.
Remaining units X Rm0.080
20,000 X Rm0.0850 = RM1600.00 (Cash out)


If the distributions taken out, the remaining units in investment are still 20,000 units.

2010 - RM0.090 given for per unit.
Remaining units X Rm0.090
20,000 X Rm0.090 = RM1800.00 (Cash out)


If the distributions taken out, the remaining units in investment are still 20,000 units.

Total incomes/distributions taken out (Cash out) are:
2002 -RM800.00 (No Compounding interest for next 8 years)
2003 - RM700.00 (No Compounding interest for next 7 years)
2004 - RM1000.00 (No Compounding interest for next 6 years)
2005 - RM1200.00 (No Compounding interest for next 5 years)
2006 - RM1000.00 (No Compounding interest for next 4 years)
2007 - RM1800.00 (No Compounding interest for next 3 years)
2008 - RM1600.00 (No Compounding interest for next 2 years)
2009 - RM1600.00 (No Compounding interest for next 1 years)
2010 - RM1800.00 (No Compounding interest for next 0 years)

Total - RM11,500.00.
If the remaining 20,000 units sell-back at RM0.8732 on 01/12/2010 = RM17,464.00
Total returns = RM11,500.00 + RM17,464.00 = RM28,964.00 only

So,
If the distributions NOT taken out and let the compounding interest work, As at 01/12/2010 the return is RM40,931.95.

If the distributions taken out, the return only = RM 28,964.00.

Diff = RM40,931.95 - RM 28,964.00 = RM11,967.95


If distributions re-invest back, the units will grow and more returns over the time if the fund perform well.

so, this is how to get high capital gain by re-invest the income over the time.


go to...... http://www.pk31-publicmutual.blogspot.com/ if u still

normaly income funds will give income annualy. the distribution policy shud be annual income. and it will be low risk too for this fund profile.

waht is ur agent doing is lock the profit and switch to tis funds and swith back to equity fund later. i think u can trust ur agent. she is doing well. but not sure abt 15% returns as u mention before.

unit trust still not popular in malaysia. tis is due to no enuf education abt tis industry. ppls dont want to invest not because of high SC, its because the risk.

as an agent i hv many experiance ppls saying that, i dont know abt UT, even UT in malaysia since 1959.

yes, i agree with high SC, but who going to distribute the unit trust if SC abolise? if so, sure UTMC biz will effected. and many agent income will effect too.

stock broker who managed funds still charge those fees. for direct retail and institutional sales, no those fees, brokerage good enuf profit already (buy and sales) even with 1% commision. even investor lost money need to pay the brokerage when sale back the share for lost..

is it fair for investors lost money and broker/remisiers/dealres made profits?brokerage?

if bursa malaysia daily trading volume min rm1bil. if 1 % com, how much brker made daily as brokerage? both buy and sales? is every investors take profits?

UT management fees not relate to investors. its related the fund value and UIC which hold by any investors. it not matter new or existing unit holders.

both stck and UT hs pros and cons.

who says cannot?

as long as the foreigner has valid passport, sure can.

i think u mis understand abt distribution vs capital gain.

UT total return = capital gain + distribution(if any).

normaly distribution declare from the NAV (unit price itself), so it wont increase the wealth. capital gain is increase the wealth.


let say the unit price is rm1.00
let say u hv 10,000 units with the value rm10,000 in fund A.
let say rm0.10 declare as disrtibution.
10,000 units x rm0.10 = rm1000
so the distrintuion = rm 1000

after the distribution the unit price will be adjusted as rm1.00 - rm0.10 = rm0.90

the value after the distribution = 10,000 x rm0.90 = rm9000

if u plus the distributiom rm1000 with the fund value after the disribution rm9000 = rm10,000

meaning = UT total return = capital gain + distribution(if any).
meaning = RM10,000 = rm9000 + rm1000

back to squre, before and after the fund value is the same. so, the distribution never increase the wealth.

if the distribution re-invest back, meaning u r buying additional units (top up) with ur own distribution. so, the number of units will increase, this will by auto will reduce the cost per units/average price.

take not distribution can be decalre if the fund not perform well or not perform too. for this case eventhough the average price looks cheaper, but it must be cheaper than market price to give profits.

so, why the distribution is given? its because the fund follow the policy and not all the investor re-invest the distributions. some seek for distribution to spend. thats why the distribution were declare and those seek for re-invest, it will be re-invest accordingly without any service charge. becaue its from own money, frm own fund and from own unit price.

do not mis understand that if a fund give distribution every year, meaning it will help create weatlh, its wrong. even if every year it give distribution the fund must hv capital gain or perform well.

a fund only can give profits if the fund has capital gain from NAV at any of time. its not because of the distribution. distribution (re-invest) only help to give better cost per unit after the NAV re-adjusted. and accumulate more units.

yes, if units are accumulates becaue of the disribution re-invested, yes the invstor will get more amount as distribution, but its still not help to create more wealth.

pls visit my siggy abt how to calculate unit trust. u can correct me if i wrong.

---

Added on June 26, 2012, 10:56 pmi dont do any calculation base on ur details.

waht i can C is, the gain is because the NAV gain. not becasue the distribution. u already give the gain price ( after the distribution) from rm1.1413 to rm1.2107. its a capital gain.

u cannot assume the accumulated units help u the gain, its wrong, because its ur own units/money from ur initial investment.

do you agree that if the NAV price drop more, and u agree u have more lost becasue u hv more accumulated units?



This post has been edited by kparam77: Jun 26 2012, 10:56 PM

Let say is u hv 1kg of cake. Slice it.
500grm x 2 slices = 1 kg
250grm x 4 slices = 1kg
100grm x 10 slices = 1kg
50grm x 20 slices = 1 kg
25grm x 40 slices = 1 kg

if the cake not has been slice, 1kg remain 1 kg.

U got the point now?

i'm sharig/trying to give better understanding only.

Let say is u hv 1kg of cake. Slice it. the price is RM1000.
1000kg = 1 slice = RM1000 , average price = RM1000
500grm x 2 slices = 1 kg , average price = RM1000 / 2 slices = RM500 per slice
250grm x 4 slices = 1kg , average price = RM1000 / 4 slices = RM250 per slice

100grm x 10 slices = 1kg , average price = RM1000 / 10 slices = RM100 per slice
50grm x 20 slices = 1 kg, average price = RM1000 / 20 slices = RM50 per slice

25grm x 40 slices = 1 kg, average price = RM1000 / 40 slices = RM25 per slice

the average price of slice get cheaper when the number of slices increase or accumulated within the limit.

let say the cake price increase rm100, meaning the value = rm1100.

rm100 / 40 slices = rm2.5,

so, every slices of cake price will increase by rm2.5, which is rm25 +rm2.5 = rm27.5 to give profits for all the slices.

sharing only.

but the benefits of distribution cannot be deny also. the more units either from re-invest the distribution, top up, DDI............ can/may give more income.
http://www.pk31-tips.blogspot.com/2011/10/...unit-trust.html

aiyo-ohhhhhhhh tak faham lagi-kah?

lu beli tembikai 1 biji = rm10.00 (average price)
kalau u jual buah itu rm11.00, dapat rm1.00 popit. (capital gain)
kalau u jual rm0.90, dapat rm9.000. rugi rm1.00 (capital lost)

faham?

ok, sekaranngggg........
potong 10 keping, jual 1 keping rm1.00 (average price)

berapa u dapat sekarang? rm10.00 kan?
kalau u simpan 9 keping (rm9.00) dan disribute (distribution) 1 keping (rm1.00), sama juga jumlah RM10.00

kalau u jual 1 keping rm1.10 ( capital gain) dapat rm11.00. rm 1 popit.
kalau u simpan 9 keping (rm9.90) dan disribute (distribution) 1 keping (rm1.10), sama juga jumlah RM11.00

kalau u jual 1 keping rm0.90 ( capital lost) dapat rm9.00. rm 1 rugi.
kalau u simpan 9 keping(rm8.10) dan disribute (distribution) 1 keping (0.90), sama juga jumlah RM9.00



sudah faham sekarang-kah?
aiyo...aiyo....mana teh tarik-ku?

Pink and J,

u guys shud join with me as agent

u r welcome to join consultant team... not salesman team

if u care abt ur client.. u r a consultant......
if u care abt urself... u r a salesman......

join my team as consulant cum salesman rather than salesman cum consultant.

no worries, if ppls know abt u, they wil come after u by refferals.

do u think im full timer?

cannot say gimmick too.........most of the funds objective is for capital gain and generate income, if any. so, distribuions is for income.

to make it cheaper, FM has option to split the units instead of distributions.

just sharing only.

yes, u need to open a CDS acc with any broker to buy share directly. as other forumer says be aware of the risk too. u still need to go through a remisier. so u still need to pay brokerage if u not aware on that.

open CDS acc to buy share or unit trust funds?