newbie investors still ok...but those agents who have been using "lai lai lai dividend coming soon, fast fast invest b4 dividend so u can untung more" as their marketing technique...u correct them, they'd respond like u just burnt their house and beat their momma

This post has been edited by Pink Spider: Jun 28 2012, 02:14 PM

No prob, as an accountant, I'm already used to being the "bad guy"

Hope someone with "Moderator" tag like u command more credibility than I so ppl will finally get this in their head

Aiyoyoyoyo

For illustration purposes, let's assume the funds here only have ONE investment, e.g. in BAT Malaysia Berhad. BAT share price = RM50

Let' say Fund ABC fund size = RM100M
Units in circulation = 100M
NAV price = RM1.0000
BAT share go up RM1 i.e. 2%
Fund ABC will go RM100M x 1.02% = RM102M
NAV price will go RM102M/100M = RM1.0200 i.e. EACH UNIT GO UP RM0.0200 i.e. up 2%

Fund XYZ fund size = RM100M
Units in circulation = 200M
NAV price = RM0.5000
BAT share go up RM1 i.e. 2%
Fund ABC will go RM100M x 1.02% = RM102M
NAV price will go RM102M/200M = RM0.5100 i.e. EACH UNIT GO UP RM0.0100 i.e. up 2%

Fund ABC go up 2 sen, Fund XYZ go up 1 sen...does that mean Fund ABC is "better"?

C'mon man...it's all RELATIVE...

When u have MORE UNITS, movements in market value will be smaller in quantum i.e. ringgit terms, but in percentage terms, it's totally the same.

I'm investor in ABC, my investment is RM10,000. Market movement causes my NAV PER UNIT to go up 2 sen, but I hold 10,000 units
My friend invested in XYZ, his investment is ALSO RM10,000. The SAME market movement causes his NAV PER UNIT to go up 1 sen, but he hold 20,000 units
Difference between my holding value and his due to this market movement? ZERO

This post has been edited by Pink Spider: Jun 29 2012, 01:37 PM

no need thank me...I just wanna rescue the world from ignorant/unscrupulous UT agents

just kidding

Cheers

If using this simplified example to illustrate still got ppl cannot understand...I really wanna already

later there'd be someone coming out with replies like this,

"I don't care if my holdings remain at RM1,000 (or worse, go down in a freefall like those China funds ), I just like to see my no. of units multiplying year after year!!!"

and like me, telling the truth puts me in the line of fire

Malulah I

Not that I wanna self-promote, I think thus far the most realistic explanation has got to be the ABC vs XYZ example, where both the funds also has the same SINGLE investment, BAT M'sia Bhd.

Just think of XYZ as (IF ABC did a unit split/distribution, it'd be EXACTLY like XYZ)

Aiyo malam malam jgn lah teh tarik, nanti tak jadi tidor...malam ni tarak Euro tau?

Just thought of another metaphor while doing biz in the toilet

- wongmunkeong invest in a property, and entrusts the management to Pink Spider
- wong pump in capital of RM100,000
- Pink chose a property for wong, bought it for RM90,000
- the property is going to earn rental income of RM1K a month

Here's the balance sheet at Day 1:

Cash at bank RM10,000
Investment property RM90,000
TOTAL ASSETS: RM100,000

Unitholder's capital: RM100,000 (100% belong to wong)

1 year later...

The property is revalued to RM110,000 ("capital i.e. paper gain")

Here's the balance sheet at Day 365:

Cash at bank RM22,000
Investment property RM110,000
TOTAL ASSETS: RM132,000

So, wong's wealth increased by RM32,000, RM12,000 being rental income and RM20,000 being capital gain.

Now, Pink proposed a dividend for wong...

- dividend declared: 50% of the realised income i.e. RM6,000

SCENARIO 1 - wongmunkeong elect to receive cash dividend
Cash on hand RM6,000
Cash at bank RM16,000
Investment property RM110,000
TOTAL ASSETS: RM132,000

SCENARIO 2 - wongmunkeong elect to REINVEST the dividend
Cash at bank RM22,000
Investment property RM110,000
TOTAL ASSETS: RM132,000

See? ZERO effect on the unitholder's wealth.

Conclusion: Dividend/distribution, on its own, DOES NOT CREATE WEALTH

However, it MAY create wealth

Back to SCENARIO 2, Pink took the RM6,000 and bought various furniture items and refurbished the property

Cash at bank RM16,000
Furniture, fittings and renovation costs RM6,000
Investment property RM110,000
TOTAL ASSETS: RM132,000

But, but...just as the RM6,000 (re)investment MAY create more wealth by getting higher rental income and/or better market valuation for the property, it may also destroy the unitholder's wealth...who knows the fund manager go and invest in rotten furniture items and overpay for renovation work?

Do u get the idea?

This post has been edited by Pink Spider: Jun 30 2012, 08:57 AM

http://www.oskuob.com.my/OSKUOB/page.jsp?n...funddtl_tracker

1% sales charge
but annual mgmt fee same as other equity funds...

fo me, i'd look elsewhere

When doing biz in toilet nothing better to do, so thought of that example

I posted at 9AM...u mean u took 1 hour to write up your post?

This post has been edited by Pink Spider: Jun 30 2012, 10:08 AM

yea, let me put it back

No no no, it CAN happen...pergilahsayang u dun mislead ppl
1. Fund accountants sleeping on their job
2. Fund auditor ambik fee buta
3. The fund is a Ponzi scheme

This post has been edited by Pink Spider: Jun 30 2012, 10:31 AM

eee...ekor musang unker param sudah muncul

I may be a good consultant but not a good salesman, I when meeting ppl

My insurance agents also always ask me to join them

This post has been edited by Pink Spider: Jun 30 2012, 11:59 AM

Got such thing

Do tell more

if u care about client but u dun even hv 1 client?

thanks for the offer but I think I've got commitments making switch to commission-based job not practical

thx for the offer though

u feel like one

oh tuhan...mengapalah aku terus diseksa

Buy BEFORE distribution:
Higher cost PER UNIT vs Higher market price PER UNIT
It's like, u buy a WHOLE 1kg cake, your buying cost is RM20, your selling price also RM20 (assuming zero sales charge)

Buy AFTER distribution:
Lower cost PER UNIT vs Lower market price PER UNIT
It's like, u buy a 1kg cake sliced into 10 pieces, your buying cost is RM2 per slice, your selling price is also RM2 per slice

hafiez oh hafiez...MENGAPA???

This post has been edited by Pink Spider: Jul 1 2012, 04:14 PM