Well, I think it is something like those golf club memberships, where you pay the annual fees and hope to sell at higher price later?

One more issue i withdraw my investment from fund is due to the transparency. We know what stock the fund manager bought but we don know at what price they bought. Take for example stock A
The fund manager bought stock A at RM 2.00 (i mean his personal account). After that he use the fund money to buy at RM 2.50. Then during RM 3.00 he can sell of his own stock first. Is it possible? I don mean to say fund is not good. I just doubtful about the transparency.. I ask my unit trust upline but he cannot answer me....

Yes, it is possible. But it is plain stupid to do so or in such way.
But if the fund manager is doing as you suggested, it is called insider trading, which is an offence to do so in all major bourses around the world. Stock Exhange around the world (especially developed one) is very keen to crack down those manipulation or insider trading to safeguard the integrity of the stock exchange, otherwise the exchange will be manipulated by interested party while others always at losing end of the game which eventually, people and investors no longer want to invest in it either eventually this stock exhange will be left out by investors.

I don't think many dare to put their job on the line which can be easily being exposed.
You risk your whole lucrative career on the risk just to gain some from the market? It doesn't make sense for most people.

Even leak out the news to others also can lead to insider trading charge.

This post has been edited by cherroy: Aug 10 2008, 09:19 PM

Yes, fund managers normally did not disclose what price they are trading for each transaction, but in the annual/interim report, there are cost of each counter and market price of each counter stated.

You mean fund manager cannot buy shares(i mean their own account)? After they bought the particular share,he can argue that he see the potential of that stock and use the fund money to invest in it again. If not they can use their wife account to do so. Is it wrong also??

There are some restricition if one works as fund manager or this particular field, if not mistaken, just like remisers can't open own or his spouse account with the investment bank they are working with etc.
Husband and wife is treated same entity most of the time, depended on the rules and regulation set respectively.

Relevant authority is not stupid either, they will investigate the timing of it. Even if one escape with the breach of the law with black and white (just like you mentioned, use relatives account to trade) but the company surely raise the suspectibilty on it which won't be good for your career. Fund managers already can gain extra from the profit (in term of performance bonuses) they made in the stock market through fund investment, then still greedy want to make more personally?

Again, just like said before, you don't risk your whole career just to gain some out of it (which also no guarantee as explained as below). Trust is important is this aspect, same with doing business, once one loses the creditability of the trust, then your whole career in this field (even in businesses) basically spoilt. No matter how good you are, nobody will dare to hire you nor doing business with you (in term of businesses).

Creditability of trust built over time, but can be spoilt overnight.

Also, just to point out, even if you are the fund manager and your fund has decided to buy a particular stock, there is no guarantee the stock will go up either. A single fund manager can't push up the stock alone even for like of EPF, even they buy aggressive in the market, but if market sentiment and market force is against it, they are powerless to drive up the stock price alone. A few tick may be, but sustainability of the share price depends on general market force, not a single or 2 investors (even though they are huge).

Thanks cherroy for your comment it clear my doubt toward fund. So what you prefer? stock or unit trust? . What i do for my portfolio is 40% stock and 60% in ASW (which i think is damn steady very safe with good dividend every year)

I only opt for unit trust (I did before quite significant also) in order to access the global equities market much easier. Locally, can easily mimic the portfolio of local fund by our own if wish to, so won't go for local fund. Just personally preference, nothing right or wrong.

I was very keen on global properties fund previously, make some decent gain also, sold off all in the early 2007, until now not yet entering back. Now start to considering back. But it would be a long road recovery for those properties stock and reits stocks as well.

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It doesn't state that the investment is mostly oversea or domestic. Normally "hottest trend" indicates high volatility

This statement is poorly described. Investors don't now what they will invest in either. Sound very 'cheap' with the word 'hottest trend'. No offence.

for market .. regardless on the instrument...
theres 3 factors in movement.

1.Market Volume..
2.Economic Sentiment ( news ) ( only stupid ppl trade on these.. cause its inconsistent and u have to be a god...hint hint.. unit trust investors)
3.Market Dynamics.. ( This is where u should set ure trading in shares for stock/fund/financial instrument selections base on market volume also)
( aka price action)

Fund managers can manipulate market dynamics
Just watch the end of the year.. again somebody has to pay for their cars/house/yacht... kekeke..

But they cant manipulate Volume.. as Volume is against them.. especially those with large cash injection.. cause u set a resistance/support level.

And personally i'd trust a fund manager that has his own cash in the investment like hedge funds in the US. Almost all the private equity fund managers have their own cash invested in the funds they manage. Reason is below

remisers and brokers are not allowed to because they will hunt their clients stop losses etc...so its like cheating the clients money..

ah so this is the basics..
but wait

collective fund managers.. ah thats a different story.. base on investment timing + manipulation of market dynamics + economic news ( PLC's quarterly report).. they can set the trend and manipulate volume.

This is where FA investors will start hunting all the TA investors. Ppl forget for its a buying selling thing.. to gain.. somebody has to lose.

Lets not even start on brokerage fees manipulation by fund managers...

Conclusion
Unit Trust.. no no... especially when its guaranteed.. ( wondering where all that profit went .. hint hint the line above)

This post has been edited by cstkl1: Aug 13 2008, 02:21 AM

For equities or stock market, it is not a zero sum game, when stock rise, everyone is a winner/gainer, there is no losser, but when stock drop, everyone is a loser except those short-sell one.

For futures market, like index futures, oil futures, yes, it is a zero sum game. A gain come from other people loss.

oops sorry forgot about that.. was trying to explain equity but somehow went into forex/futures trading...

but to explain this also...

what cherroy meant is this...

in equities and stocks.. its about creating wealth.
investors are trying to analyze and position the profits that will be left over to shareholders. This causes fluctuation in price. So business conditions will affect companies P&L. Basically its a Present Value Game..

but the fund management strategy still remain true and investors should be weary of guaranteed funds especially structured funds.

Hi there,

I have some doubt here, I bought Public China ittikal fund last year during the fund launch. The price was 0.25. As of yesterday the price is 0.18 something, I know unit trust is for long term, but it never raise over 0.25 since the day I bought. Now every month it will auto debit from my PBB account RM500. I doubt after 2-3 years this fund will earn me money.

Anyone of you here consistently get 15% annual return for all the investment he did? If yes please share:) (10% above also can share). I am 25 this year and decided to retired by the age of 50. I want to compound my investment money. hehe

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KUALA LUMPUR: The Securities Commission (SC) will issue another batch of Islamic fund management licences by year-end, apart from the three already granted to Kuwait Finance House, DBS Bank of Singapore and CIMB-Principal.

SC chairman Datuk Zarinah Anwar said the move was aimed at further promoting Malaysia as an Islamic fund management centre and global centre of excellence for Islamic fund managers.

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Zarinah said Malaysia had an attractive Islamic equity value proposition with 85% of companies listed on Bursa Malaysia accounting for 65.6% of total market capitalisation being syariah-compliant

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Zarinah said the Malaysian sukuk market had experienced unprecedented growth with the country firmly established as one of the largest issuers of sukuk over the years.

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On another note, Zarinah said the SC had frozen the accounts of SwissCash, a website operating an illegal investment scheme.

URL: http://biz.thestar.com.my/news/story.asp?f...18&sec=business

First, no fund / stock is always going up. There sure will be some correction and downturn. So for long term investment you are looking for the long term prospect not short term. Like what buffet do, after you invest, you should not monitor on the price movement but you should look for the overall company profile and growth. For your case which is china fund, you should look into china market in the next 10 years (excluding gaming, alchohol as itikal fund is syariah compliance). But my concern on china fund is china is facing rapid aging population. This is the important thing you got to look into.

Okay, I am going to sell it off

Hey brother, i din ask you to sell you got to verify yourself thats what i mean.

@bulkbiz

Wat Darknight81 said is correct...you dun look into short term gain...1 yr is still consider short term in Unit Trust.

With the current market situation, no fund will be spared for the drop.

Wat your rm500 monthly doing is to help you lower down your cost, so in future, when market rebound, you can sell/switch 1st.

Imagine 2 person with same investment fund...one with cost price of 20sen another with 25sen...who can get out 1st?

But in 1st place, your investment in unit trust is aim at long term...but you still have the right to sell it off if you think the investment does not meet your objective.