Yup.

DDI works better than lump sum if the fund performance like
Start
1.00
0.90
0.80
then 1.00
and finally 1.20.

That's why I said DDI only works well in certain circumstance. If only works well in circumstances which depended how situation unfold and not a foolproof to eliminate the risk. In real term, more risk being taken due to more money being committed into the same fund.

I know every agent will push hard on DDI, I won't discourage or encourage on this.
But investors deserved to know the flaw and potential risk of DDI that can make greater loss in the future.
The statement of DDI works well doesn't necessary true.

Check everyday newspaper got publish, banks website also have, and the fund house website also got.

The NAV of the fund is changing everyday based on their worth of investment which is based on market price of their underlying portfolio (or shares/bond they bought).

The NAV increment/decrement is the ultimate barometer how the fund is performing.

This post has been edited by cherroy: Jan 12 2012, 02:10 PM

Yup Yup, and I have yet to actually see in practice, an agent doing VCA, a better methodology than DCA, for the above example of up/down real world scenario. Too much real work gua Pair VCA to an average equity fund, cukup - needn't be best of the best fund

Cherroy, Lunchtime Q is...... kparam77, tell me should i DDI in PCSF, PCIF? because according to you DDI averages the cost of purchase but to me, the fund is still losing money after 4 years of DDI.


how u answer this, shud lunchtime do DDI for PCSF or PCIF?

---

Added on January 12, 2012, 2:42 pmSC for RM100K, let say 5% = RM100K x 5% = RM5K.

if break the RM100K for DDI, let say monthly Rm500 for 200 months with the same SC.

Rm500 x 5% = RM25
= Rm25 x 200 times
= RM5K.

so, the agents commissions from the SC too.

so, its either lump sump or DDI, the SC is same.

agents will get steady/constant commission but not the more.

This post has been edited by kparam77: Jan 12 2012, 02:42 PM

Ya this is what my friend told me too. Both have the same SC.

http://www.publicmutual.com.my/application.../fundprice.aspx --> Daily Fund Price

Please always ask your servicing agent on your Profit/Loss Statement at least one quarter once since he/she (That servicing UTC) is earning the S.C. It is his/her role to update you frequently on the fund performance from time to time. The UTC can see clearly accessing your account. The PMO won't tell you the average cost per unit of your fund. But for expert such as Wong/Cherroy/kparam, I think they can calculate themselves without accessing PMO or any CAMS's P/Loss Statement. I also can calculate without referring without referring to CAMS. (provided some basis information provided at first place)

You may do any trading in PMO (Public Mutual Online) after the company receiving your new application form or you may register online through PBebank.com website. (Under Investment in the Left Menu after login to PBebank.com)

Please take note PBebank.com is the Public Bank Banking Platform while PMO is Public Mutual Investor Trading Platform. DO NOT confuse on these 2 platforms. As for future top up or redemption or switching transaction, you may always logon to PMO to perform the transaction. It is faster than asking your servicing agent to submit form. However it is their role to update you your fund's Profit/Loss Statement at least once per Quarter (3 months). My practice is normally once per month to all of my investors without any miss so far. (For the past 12 months)

Glad that you begin with RM2k in PRSF....Keep rolling Bye for now.

just wants to share,
Not nessacary to go finally 1.20.

Example:

Invest Rm100;

Rm100 / 1.00 = 100 units
Rm100 / 0.9 = 111.11 units
Rm100 / 0.8 = 125 units
Rm100 / 1 = 100 units

So, total invested = RM400 and accumulated units are 436.11

So, the average buying units price is = RM400 / 436.11 = RM0.917. not Rm1.00 or 0.9 or 0.8 anymore.

So, not need to wait for 1.20 to gain profits, RM0.92 shud be enough to start the gain.

Different POV - time-value of $ is different.
eg. $10,000 SC gotten in 2011 Jan
VS $10,000 SC spread through 3 years DDI (ie. by end of 3rd year then only finish collecting the $10K)


Not to mention "locking in" a customer's $ upfront if whack one lump sum. Then can laugh at other consultants trying to get a piece of the action from that customer.

This post has been edited by wongmunkeong: Jan 12 2012, 04:53 PM

Yeah.. this DDI is a double edge sword.. what if the following scenario happen how?

Start
1.00
0.95
0.90
0.80
0.75
0.70

Then how? In stock terms we call this 'catching falling knife' There is no guarantee DDI can help you make back your losses... depending on the performance of fund. It also could be like the above, one way ticket to disaster...

The 1st and foremost to to determine the if fund fits your requirements and if it constantly beats benchmark on the longer term.

This post has been edited by gark: Jan 12 2012, 05:13 PM

ya, its true.

down, down down means, DDI also can down also.

the price shud flactuate for the gain.

Enron, WorldCom, Bernard Maddoff's funds and Lehman brothers style

Thank for the info, you provide the best explanation

---

Added on January 13, 2012, 9:47 amAny good investor(s) in history before put example RM200k lump sum and within few months, get back around RM1m or more/less? Just curious.

This post has been edited by JeffreyYap: Jan 13 2012, 09:47 AM

Should be

Down down down means DDI triple down.

RM 200k to 1million within a few months? Not unless you go to Genting or punt in Warrants... a.k.a gambling. Or you can end up with $0 after a few months..

This post has been edited by gark: Jan 13 2012, 10:49 AM

kalau macam ini ASB pun kalah.

not possible in UT.

the expectation in UT from 5% - 12 % average. (equiy funds), BONDs 5 - 8% average.

if follow rule 72. double ur money vs yrs.

72 / 5% = 14.4 yrs.
72/8% = 9 yrs.
72/12% = 6 yrs.

so, its abt 6 to 15 yrs to double ur money in UT, if follow the RULE 72. and it depends on the fund performance too. this rule may not suit for bad performing funds.

my personal view only.

come with me to Genting

That 's gambling, not investment.

On our ongoing discussion,

1) VCA - I doubt agents would do this method as it involves a lot of monitoring and its tedious work. Say an agent with 300 clients, how would he manage VCA for each client? Its impossible task.

2) one wonders why I kept asking kparam77 certain questions, because he, as an agent failed to note on certain aspects. I rather not point out what I am looking for but its quite clearly stated in some of the posting by non agents here.





This post has been edited by lunchtime: Jan 13 2012, 12:42 PM

as an agent failed to note on certain aspects.

can u elobrate on this. maybe u not understand from my earlier replies. NO WORRIES, i will try my level best, MAKE U UNDERSTAND.

kparam77 is new that why he no experience

Just wonder only , thank, now i know it lol that is impossible unless go Genting bet .

This post has been edited by JeffreyYap: Jan 13 2012, 01:11 PM