Hi,

Do you guys think it is wise to dump most of my $$ in Am Dynamic Bond rather than in my flexi home loan account (BLR - 2.1%)?

I know bond has risk as well, not as high as equity funds. Well.. no risk no gain right? This bond risk is lower, so willing to consider this option.

yes it's a good bond no doubt, juz take note on the 1% exit fee

yea.. that is the down side..

But anybody doing this option by dumping in bond fund rather than the 100% safe dumping in flexi loan account to reduce interest payment?

FYI - my flexi's BLR -2.2%, thus effectively it's 4.4%pa now.

I wouldnt suggest DUMPING most of yr $$ into any bond funds - best to have it spread, eg. 50% at most into bond funds (not specifically AmDynamic Bond) and the other in yr flexi home loan a/c.

Heck, if you're an equity investor (normal stocks, equity funds, REIT stocks, properties, etc), U may not even want to dump in 50% as your $ in yr flexi mortgage is "available any time" for U to buy into opportunities WHILE nearly making as much a bond fund (nearly heheh - say 5% to 6% pa on average). By "not placing" the $ in a bond fund, U dont have to worry about the entry or exit cost from the bond fund when U want to go on an equity buying spree.

Personally, i've only moved a small amount of $ from my flexi mortgage into a bond fund - at most, less than 1/3, and then only because i've accumulated more than what i plan to use for equity purchases within a year. Pls note that i'm an "asset allocator" and "DY% or value lelong buyer" at heart, thus keeping enough cash around for opportunities & re-balancing is needed - your mileage may vary greatly if you're more focused on Fixed Income.

Just a thought

This post has been edited by wongmunkeong: Jan 30 2012, 07:59 PM

Thanks for your thoughts! I am a very new investor in mutual funds, so dont really have broad enough knowledge on what will be best in an investment. At this moment, I am only in Mutual Funds. No Stocks, no forex, no futures, no properties.. I think I will not be able to handle them as I am very new and most importantly not enough ammo for those investment. But I agree with you, need to have some ammo when opportunities come... I miss out the opportunity during 2008/09 crisis. That time, only put in FD.. until something knocks my head and says... hey, why you are not making your surplus $ working for you instead!

Mind I ask... what do you mean by DY% you mentioned above?

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Added on January 30, 2012, 8:27 pmI would like to ask all sifus out there... I am not sure if my concept regarding mutual fund is correct or not. I always think compounded is correct, but after deep thought.. I cant seem to find a proof for this.

Lets say I invest in a fund in lump sum of RM10K for 10yrs. And this fund in 10yrs increase 100%. So my question is what will my profit be?

A) if 100% increase, when I sell at year 10. I will be getting RM20K? So profit will be RM10K?

B) Or there will be compounded factor in my profit? Can I say 100% in 10yrs, so 10% is anualized for 1yr. So when I sell at yr 10, I will get approx RM27K. So RM17K is my profit? (I calculate this compounded value from a website, I hope it is right)



This post has been edited by Kaka23: Jan 30 2012, 08:27 PM

No seafood here yar, just a worker ant chugging along & sharing hopefully something useful
DY% = Dividend Yield %, a measure of returns for stocks/REITs and any dividend paying investments
eg.
1. If U bought a REIT stock for $1 per unit and it gave U $0.10 net dividend at the end of the year, U can say your REIT stock's net DY% = 10%
2. If U bought the same REIT stock later in the year before dividend ex, say $2 per unit, and got the $0.10 net dividend for your 2nd REIT transaction, U can say yr 2nd transaction net DY% = 5%

---------
On your Q on compounding, i think a visual will help explain here

Based on the visual above:
1. Assuming your $10K grows 100% to $20K, yes you will profit $10K but look at the per annum growth zig zagging
2. Assuming your $10K grows 10%pa compounded, U will notice it's $26K (rounded up), not $27K. Well, assuming it's $27K, $17K is your profits

The Qs U posted is a bit... weird. It doesnt ask a cohesive Q and I think none of the answers above helps..
Pardon me if i'm mistaken, are U trying to figure out HOW TO CALCULATE your CAGR?
either for each of your entries/transaction and/or TOTAL for all entries/transaction for a fund?
heheh - the best As in the world cant help if the Qs arent on target - thus my clarification request

This post has been edited by wongmunkeong: Jan 30 2012, 09:58 PM

Dear Mr Wong,

Thanks for trying to answer my "weird" question. Haha.. appreciate your effort to help out. Maybe I am no finance people and even dont know what is CAGR. Although I have google it put for many times on this term, but just cant really inject the meaning into my head.

What I am confuse is, can I actually calculate my return/profit (say I buy lump sum and sell after 10yrs) using compounded return when I buy into any unit trust? (say example OSK UOB Kid save, in fundsupermart saying the bid to bid annualize return for 10yrs is 11.6%)

If using compounded return (based on Kid save fund), my RM10K will become approx RM32K when I sell off.. is that right?

Mr Wong's my dad , i'm just wongmunkeong and i'm in IT, thus not Finance ppl too .
Ok, back to "work".

The concept of CAGR is in simple effect, your returns on your capital + returns on returns, which i think U've nailed down. It's just the bleeding maths thinggy right? i'm no maths genius (Credit3 only for SPM ) but logic is my game, thus, in Excel, for lump sum:
1. IF U know the %pa compounded (CAGR) and years compounded
U calculate forwards for $10K and grow it by 11.6%pa compounded, it'll be $29,966.90879,
eg. $10,000 * (1 +11.6%)^10yrs
Note: The karat symbol, "^", is math's "BY POWER OF" (pls correct my math's English if i'm mistaken)
Thus, yes, you're right IF past history is repeated perfectly for your purchase and sell timing
I'm just assUme-ing that U are estimating your future returns?
If so, please be aware that U should always look at "bad ending", "good ending" & so-so ending scenarios for your time horizon, to get a holistic probable view (IMHO lar).
eg
for 10 years' bad ending = 1999 Jan to 2008 Dec
for 10 years' good ending = 1998 Dec to 2007 Jan
for 10 years' so-so ending = 2001 Jan to 2011 Dec

2. IF U know the total value at end of 10yrs and want to find out the %pa compounded (CAGR)
CAGR %pa = (Current Value / Cost)^(1/years) -1
Where:
Current Value = units * NAV (ie. redemption value / sell back value)
Cost = total cost for that transaction or purchase

Using your example, Kid Save Fund:
Current Value = $29,966.90879
Cost = $10,000
Years = 10
Thus, CAGR = ($29,966.90879/$10,000) ^(1/10) -1
=2.996691 ^0.1 -1
=1.116 -1
= 11.6% pa compounded (CAGR)

Cool or ?
For multiple entries/buys (like DCA or VCA) in a fund, calculating your overall CAGR is even more (unless U use Excel's XIRR function to have a close approximate) but calculating each entry's CAGR is the same as the above (2).

Hope the above helps more than confuse

This post has been edited by wongmunkeong: Jan 30 2012, 11:28 PM

I "think" I am cool wongmunkeong! Haha..

So from your explanation, I can say that CAGR is the same as annualized Percentage that fundsupermart publish at their website. Ya.. I am trying to project my return based on history performance...

Funds not open for investment
___________________________________________________________________
· Public Islamic Bond Fund
· Public Bond Fund
· Public Ittikal Fund *
· Public Select Bond Fund *
· PB Growth Fund *
· PB Islamic Bond Fund
· PB Fixed Income Fund
* Open for EPF investment

CIMB-Principal Pays Out RM43.74 Million in Distributions for 12 Funds

Kuala Lumpur: CIMB-Principal Asset Management Berhad (“CIMB-Principal”) has declared RM43.74 million in income distributions for 12 of its unit trust funds in December 2011, despite the extreme swing in market sentiments throughout last year.

Total gross distributions declared in December 2011 are as follows:

Fund | Gross Distribution / Unit (Sen)

CIMB-Principal Bond Fund | 4.10
CIMB-Principal Strategic Bond Fund | 3.65
CIMB-Principal Institutional Bond Fund 2 | 0.60
CIMB-Principal Institutional Bond Fund 4 | 0.32
CIMB Islamic Equity Aggressive Fund | 3.15
CIMB-Principal Balanced Fund | 2.62
CIMB Islamic Balanced Growth Fund | 1.86
CIMB Islamic Money Market Fund | 0.18
CIMB-Principal Deposit Fund | 0.23
CIMB Islamic Deposit Fund | 0.23
CIMB-Principal Wholesale Deposit Fund 1 | 0.28
CIMB-Principal Corporate Deposit Fund 1 | 0.32

URL: http://www.cimb-principal.com.my/News-@-CI...r_12_Funds.aspx

btw, i wanna ask is hwangdbs income select fund good?

No good bro
7.09% pa average for 5yr
http://www.bloomberg.com/apps/quote?ticker=HWACOME:MK

i intro u this better
15.27% pa average for 5yr
http://www.bloomberg.com/apps/quote?ticker=KUTNETF:MK

Kenaga Growth Fund is Leader in it's class - Equity Malaysia (Total of 81 Funds) U may check out in Personal Money Page 71 in Feb 2012 Publication as well. :-)

Hi All,
I'm a newbie here. recently i just begun to realize that i need to start saving money for a few expenses that i will be encountering in a few years time. i'm planning to start saving in 4 months time and i have been reading up on unit trust and mutual funds. The first thing every websites tell is to read the prospectus and not to totally rely on your fund manager. there is a lot of advertisement also saying to know what you are investing in. I hope i'm asking something ridiculous but i would want to know where can i read up or learn on mutual funds. Would it be a good idea to start reading this thread from the beginning? really appreciate your feedback on this as i'm a bit lost on who can i talk to get some advise. thanks in advance.

You're not comparing like with like, HDBS SI is mixed assets-conservative fund, an INCOME FUND whereas Kenanga Growth is MYR Equity fund, a GROWTH FUND

HDBS SI
- 70% fixed income, up to 30% high dividend-yielding equities
- Non-restrictive mandate, Asian focus; currently about 50% in MYR assets, 50% in foreign investments (mainly HK and SG, the rest in USD-denominated bonds)
- Aims to maximise returns in MYR terms
- 3% sales charge

7%+ annualised return beats EPF, and it does so at a relatively low volatility
3-Year: 11.40%

Kenanga Growth is doing WONDERFUL, but WHAT IF KLSE goes crashing down?

IMHO a combo of BOTH would be great

This post has been edited by Pink Spider: Feb 6 2012, 04:02 AM

Kenanga Growth is doing quite well for the past 2-3 years is due to the stock selection that favors it during this time. The fund mostly focus on dividend growth stocks, which is kind of the 'theme' during these turbulence times (US & EU problems) which see tremendous appreciation for these stocks. If you see the long term performance, It did not do so well prior to 2009 due the investor preference to pure growth stocks (during super boom times). So it's out-performance during 2009-1012 is primary due to the fund having the right 'theme' during the right time.

IMHO dividend stocks is already approaching 'bubble' status especially overseas, and now the dividend yield for the stocks is no longer attractive. However, dividend growth strategy is a prudent and less volatile strategy so even in the even of stock market boom times, It will not be too shaby either, but then it will not have much out-performance either.

That being said, although Kenanga Growth Fund has a spectacular run so far, I wouldn't put all may eggs in it.

"what goes up, must come down"

1. AmGlobal Emerging Markets Opportunities Fund
2. Prudential Asia Pacific Equity Fund
3. OSK-UOB Big Cap China Enterprise Fund
4. Manulife Investment – China Value Fund
*info from FSM*

The funds above seems like performing quite well. If only can choose one, which one is the right choice and suitable for investment period for 3 - 5 years?

Thanks in advanced.

This post has been edited by th3_UnFoRs33n: Feb 8 2012, 12:52 PM

Single sector/country fund is a BIG NO-NO for me

1 & 2 looks attractive

Prudential Global Emerging Markets Fund is quite similar to AmGlobal Emerging Markets Opportunities Fund, both also feeder fund to a Schroder investment fund, the only differences are -

PRU
- Feeds into Schroder ISF Emerging Markets
- Equity fund
- Larger Target Fund size, as at 2011-end portfolio size = 100++ different stocks

AmGlobal
- Feeds into Schroder ISF Emerging Markets Opportunties
- Equity AND fixed income fund, but most of the time it's overweight equities, >75%
- Slightly smaller Target Fund size, as at 2011-end portfolio size = 50++ different stocks

I'm buying the PRU one.

This post has been edited by Pink Spider: Feb 8 2012, 01:25 PM