no seafood here though IMHO, i'd recommend U stick to FD or plonk yr cash into yr flexi mortgage if U have one.
1yr or 6 mths time horizon + liquid in case of emergencies? Sorry ar - point blank, U dont seem to have built up an emergency fund AND your "investment" time horizon is too short to be viable IMHO.

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Added on February 14, 2012, 6:41 pmer.. U talking about ForEx or Money Market? MM ada lar but ForEx.. havent seen one locally

This post has been edited by wongmunkeong: Feb 14 2012, 06:41 PM

Hi fellow senior investors, lately I have started investing in bonds funds and I went for Dynamic Bonds Funds by AmBank. The reason being the return for the past few teas have show a satisfying % for me.

My doubt is UT can help investors earn through dividend (interest) annually and capital (when you decided to sell off your bonds. Am I right on this thinking?

BONDS funds return = annual dividend interest + capital gain (when you decided to sell)?

Technically speaking, am I right? Returns is based on my annual % of capital.

total return = income distribution(if any) + capital gain/lost

go to how to calculate ut in my signature.

go study kparam77's blog

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Added on February 20, 2012, 5:07 pmto add for DewVP:

Normally UNLESS u elected for distributions to be paid back to u in cash, by default the fund will reinvest the distributions for u in the form of additional units

In share investing it's quite similar to your bonus issue, which THEORETICALLY won't affect your holdings value

This post has been edited by Pink Spider: Feb 20 2012, 05:07 PM

So technically I'm right. Because Pinky (below) made the explanations a bit complicated by saying there's no real gain (left side in, right side out) etc etc. No hard feelings. It's just that I'm a slower learner.

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Added on February 20, 2012, 6:50 pmYes, I know. I choose to reinvest my distributions. But technically that distribution is part of my gain as well. But I'm just reinvesting my gain into my capital. Maybe for some people, reinvestment gain is NOT a gain?

This post has been edited by dewVP: Feb 20 2012, 06:50 PM

AmConstant Flexi fund size rises to 225 million units

KUALA LUMPUR: AmMutual has increased its approved fund size of the newly launched AmConstant Flexi to 225 million units from its initial 100 million units.

AmInvestment Bank Group fund management division said the fund size has been increased twice from its initial size to meet investors' overwhelming demand.

AmConstant Flexi is a three-year close-ended bond fund that caters to the needs of investors seeking income stability in the face of market uncertainties.

As of now, the fund has collected RM128 million subscription proceeds, retailing at RM1 per unit.

The fund is offered since Jan 16 till Feb 29, with a minimum RM5,000 investment.

URL: http://biz.thestar.com.my/news/story.asp?f...56&sec=business

CIMB-Principal Wins Best Overall Fund Group Award

uala Lumpur: CIMB-Principal Asset Management Berhad (“CIMB-Principal”) today won the Best Overall Fund Group Award at the prestigious industry wide event, The Edge-Lipper Malaysia Fund Award 2012, thanks to the consistent out-performance of its funds. This win cements CIMB-Principal’s position as the premier fund provider.

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

not nessasary, u still can get distribution(if any) if capital lost and it depend on distribution policy.

for the annual income policy, if the fund make lost, still distribution declare because of the policy. maybe the gain is in the name of units if re-invest the distributions, not the holding value.

do u know that if u take out the ditribution, ur holding value will be less from ur original value? but the number of units remain same. its because the distribution is given from the unit NAV.

if ur NAV is RM0.10, if rm0.02 decalre as distribution per unit. ur unit price after the distribution will be RM0.08. its never remain as RM0.10.

the value is determine by the price movement, not the distributions.

u hv to choose which is u want. cappital grow or income. both give diff meaning.
if u young, u hv to focus on capital grow without worry abt income/dividedns/distribution. (growth fund/equity funds/dividedns funds)

if u old, focus to income/dividedns/distribution becuse u may spend it annually.(dividedns funds/bonds/MM)

if a fund objective says that give steady income/dividedns, its not mean it will give dividends on capital gains only. its may capital lost too.

my 2 cents.

kparam.... I GOT IT ALL WRONG!

I calculated it the wrong way!

RM5,000 capital.
10% return.

RM5000 x 10% = RM500

Total = RM5,000 + RM500 = RM5,500 (total capital now)

But it's wrong.

You said the RM500 is paid to me based on my RM5,000. If that is the case, how I earn my money??? You explain further that all the dividends earned will be revert into units.... So one of the way UT earn is to make sure I accumulate lots of unit and selling it high to earn capital gain????


2. So is that why u mention above I need to set which one I want? Either capital gain or dividend? Cause if I choose not to reinvest my dividend, I get to keep my dividend. If I reinvest, there is a risk that unit price might drop and affect my capital gain?

This post has been edited by dewVP: Feb 21 2012, 01:18 PM

taht why u need to understand abt UT concept. how it work.

let say u invest rm5k. i calcualte without service charge to make u undersand.

let say the unit price is rm1.

total unit u have is 5k units.

let say the unit price up to rm1.20.

so, 5k units x rm1.20 = rm6k. (total return)

ur profit is rm6k -rm5k = rm1k.

let say rm0.10 declare as distribution.
5k units x rm0.10 = rm500

so, the total return = income distribution + capital gain
RM6000 = RM500 + RM5500

if u take out the distribution, the balance/value will be RM5500 with same 5k units.

if u re-invest back, let say with rm1 per units.

rm500 / rm1 = 500 units

total units now is 5k units + 500 units = 5500 units

value still rm6k.

so, no diff in the value, only the units is increase if reinves back.

the unit price will re-adjuxt from Rm1.20 to rm1.10, because rm0.10 already declare, either taken as cash or re-invest.

so, price movement is more important to give u profit, not the dividedns.

But dividends also play part of the role. Cause if I reinvest dividends, capital more... Units also will directly be increased right?

The unit price you referred to... Is it MY PERSONAL unit price OR the unit price in GENERAL... Cause I read the past trend of unit price. NEVER DROP BEFORE WOR...

of cource if u re-invest ur distribution, meaning no minus from ur value plus more unit accumulated. ur average price will lesser.

I assume the PERSONAL PRICE is average price and GENERAL price is market price.

as example before ur avrage price per unit is rm1.00

after the distribution re-invest, ur total units are 5500.
now ur avrage price is = ur capital invested / units
rm5k / 5500 = Rm0.90

no more rm1.00. so, the more units accumulated by re-invest the distributions, the cheaper the average price. assume the capital only rm5k.

take note, distribution will be tax. waht u get is after the tax payout.


NEVER DROP BEFORE WOR...???????
which one? from where u read this?

so my average unit price varies every year?

Or I just need to calculate my profit every year... so that i can calculate the amount of ''EXTRA'' units i can get...

and then repeat the process every year.

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Added on February 21, 2012, 3:08 pm


how to calculate my average price every year.

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Added on February 21, 2012, 3:09 pm

for AmDynamic at least. I look through their trend for the past 3 months. So far never drop before.

This post has been edited by dewVP: Feb 21 2012, 03:09 PM

yes, u need to review ur investment time to time.

average price = total amount invested / total no of units u hv.

3 months not enough to study the fund, at least 3 yrs and above the past record..

kparam77, pls hlp me enlighten dewVP...I talk til I wan bang wall liao

Good luck

3 months' data = NEVER drop in price... laughing until i fell off my chair
KParam has the patience.. ohm... ohm.. newbies' gift from the sky

This post has been edited by wongmunkeong: Feb 21 2012, 05:41 PM

Well, have to start learning from somewhere. I don't mind the criticism, as long as I'm doing the right thing.

for investment evaluation, I see 3 yrs data...if 5 years got even better

Hhehe - you're right dewVP.
I think PinkSpider & i was just... very shell shocked at yr "expectations management" - me especially on the time aspect (3 months = forever)
There's a first time for anything i guess - thanks for bringing some smiles this afternoon

Just to help adjust "time & returns expectations", IMHO (please tembak if totally out of whack ar bros & sis):
1. Short term is usually 1 to 2 yrs for equity funds, which is usually not advisable.

2. medium = 3 to 5 years+

3. long = 10yrs+

4. an average return of 6%pa to 9%pa compounded annual growth rate (CAGR) / compounded per annum returns is "average" for 5yrs+ to 10 yrs+
Note that average is statistical - Year 1 may be 70%pa, year 2 20%pa, year 3 15%pa, year 4 -30%pa!, etc.
Can be a wild ride even if "statistical average" returns/growth is about 6%pa to 9%pa compounded - thus, be prepared mentally

5. If you're not a hard-core investor, to calculate yr net returns pa / CAGR, just take yr transaction's (CURRENT VALUE / COST) ^ (1/years held) -1
This is assuming U've dividends auto-reinvested

6. Focus on total systematic offense, defense and the "supply chain", not individual funds/stocks.
ie. Have a plan & methodologies - eg. Asset Allocation with DDI + Value lump sum OR Asset Allocation with Value Averaging + Value Lump sum, etc.

Just a thought

This post has been edited by wongmunkeong: Feb 21 2012, 05:58 PM

That's actually not what I meant when I pointed out about the 3 months. Due to the lack of information on the unit price for the past 3 years, I'm just MERELY saying that the available record of 3 months seem to be showing upwards trend.

That's what I was trying to point out.