Some (not all) mutual fund distributors allow u to choose:
(1) to re-invest dividends
(2) to received dividends in cash

I believe most of us here belong to category (1), as such dividends do not affect us in any way.

But for those who chose (2), dividends would be a source of cash flow/income to them.

Of course, whether u choose (1) or (2), your net worth position would remain the same.

Illustrated examples...

Mr One invests $100m in ABC Fund.
ABC Fund grew 10% in the past 12 months.
ABC Fund declare dividend.
Mr One elect to reinvest.
His holdings in ABC Fund would be $110m

Mr Two invests $100m in ABC Fund.
ABC Fund grew 10% in the past 12 months.
ABC Fund declare dividend.
Mr Two elect to receive dividend in cash, thus he will receive a dividend cheque (say, $8m)
His holdings in ABC Fund would be $102m, cash on hand $8m

This post has been edited by Pink Spider: Aug 20 2012, 02:37 AM

thanks....means I understand correctly that it is meaningless and just focus on the actual dollar value growth!

2 types of benefits from UT.

1. capital growth.
2. income.

if u young and want to grow ur wealth, go for funds which focus on capital growth.

if u retiree, go for income funds. capital growth is 2nd priority.

distribution is meaningless for growth, but it is important for those look for annual income for spending.

lets say if u manage to grow the value abt RM1mil, upon u retire, switch money to income fudns like bond. assume 1 unit rm1, and u may hv 1mil units. assume 5 sen declare as distribution annualy. u may get rm50k whcih can spend it annualy.

not all the retiree will switch to bond funds, some still stick with growth/equity funds and the distribution is meaning for them too. some may hv more than 1 mil units which can give more income annualy if still 5 sen declared as income.

so, in UT, the more units u hv, its may give more capital growth and more income respectively.

Hello,

I have RM50k to invest, still young looking to increase my capital growth.
Willing to invest up to 5 years.
soo sifus, some questions:
1. How much gain am I looking at in 5 years?
2. How do I choose a unit trust? What should I look out for? Any recommendation?
3. Can I gain more by investing in different banks unit trust?
4. Is there such thing as dividen paying long term investments without buying stocks?
5. Should I focus on one investment, or spread out to others? (gold, stocks, etc.)

Newbie here,
thank you for any pointers.

how do I know which funds concentrate on capital growth or income?

what's the difference between them?
If a fund gives out dividend monthly, I can still invest all the dividend to the fund, is that correct?

Income concentrated fund will generally declare distribution on periodically basis i.e. annually.

Capital appreciation fund will have incidental distribution policy whereby they're not committed to do so.

You should read the fund objective and prospectus.

read the given prospectus at least 3 times for better understanding abt unit trust.

http://www.publicmutual.com.my/LinkClick.a...tA%3d&tabid=105

for the current market condition, inveting rm50k lump sump is not a good idea. better split it and cannot confirm abt the returns for the next 5 yrs. for me its still short term. the longer the better for the rewards. and it depends on the fund performance. u need to choose which fund is cater for ur investment objective which is capital growht with ur risk tolerance.

read the funds objective and difference in prospectus http://www.publicmutual.com.my/LinkClick.a...tA%3d&tabid=105

dividedns only declare annualy(if any) and u can re-invest it without any issue.

1. this depends on your risk profile whether your willing to tk more risk or low risk.
2. anyway like forums, magazine, newspaper or etc
3. for this u need to look at the past records of fund...although past good record din guarantee future will be good too but at least it has a track record for u to refer.
4. getting dividends from unit trust did not increase your wealth. if your looking for steady dividend, why not considering reits?
5. not sure. i only invest in funds and shares and i feel it's enuf.

Personally i think that u can buy good dividend yield shares like carlsbg, gab, pbbank and etc.

Hi guys and all the professionals,

I am so glad to see there are so many members that are willing to help out.

I have no basis of economics/ investment-related knowledge but i am keen in trying to understand the field and especially the concept of Benjamin Graham.
However, i couldn't relate them to Msia's Bursa due to my limited knowledge and source of information.

May i ask where could i obtain more information? (Does The Edge still valid as a good source of information?)
May i ask for the jargon for index fund used in Msia?
As a beginner and learner, may i request for more advice as what i could do to improve my skills of investment (i am hoping to to learn to value a company to invest primarily in dividend instead of capital gain)?

Any advice and guidance are greatly appreciated.

Sincerely

Some relevant website for investor's reference:

i. Morningstar
ii. www.fundsupermart.com
iii. kclau.com

er.. bro, i think U are posting in the wrong topic/thread IF U are focusing on "..to learn to value a company to invest primarily in dividend instead of capital gain".
Fund houses and Mutual funds/Unit Trusts - U would never know in real-time what companies they are investing in, nor would U know what companies the funds are holding in real-time. Post-real time (like every Quarter), the fund houses may publish their TOP holdings per fund, and even then, it's not ALL the holdings per fund.

Try scrounging around the Stock Exchange threads/topics http://forum.lowyat.net/StockExchange , and search for dividend investing.

In addition, U can pop over to your favourite book store and look for http://www.dynaquest.com.my/spg.html which has several donkey years of data (EPS, DPS, PEs, etc) + last 3 years of financial ratios. U can also try online subscription to Equities Tracker http://www.equitiestracker.com/
Both the book + online does have write-ups on each of the statistics' usages for U to develop your own filtering criteria.

Just a thought

Thanks for all the the advice.

I will post the topic in the mentioned relevant areas.

I was doing some reading and found this. Very basic for a lot of people. Just wanna be clear..

http://www.signalinvest.com/personal/learn...ticle_id=100102

So this is how return should be calculated. My question is let's say u got 2 UT. After calculating both the annual profit %, u add them up and that's your total portfolio profit?

Fund A 2% annually
Fund B 3% annually

So total 5% right?

if both invest same amount/ time, i think it shud be (2% + 3%) / 2 = 2.5%

or,

A = RM10,000 and the profits = rm200
B = RM10,000 and the profits = rm300

rm500/rm20,000 x 100 = 2.5%

or, if diff amount at same time,
A = RM10,000 and the profits = rm200
B = RM5,000 and the profits = rm150

rm350/rm15000 x 100 = 2.33%

uncle wong, xuzen betul-tak?

<koff><koff> Unker checking in
For the same TIME ENTERED and EXIT (green), yup simple calc for 1 year, same ENTRY and EXIT time, is the CAGR / compounded pa.

For the different TIME IN/OUT/more than or less than 1 year, er.. not calculatable to me using simple calc coz time value of $ is not comparable, thus, best to use Excel's XIRR() function. i'm a calculator baka, too dependant on Excel

This post has been edited by wongmunkeong: Aug 23 2012, 08:36 AM

Bro.. I tried few times using XIRR, but still not successful lei.. sad sad

I'm just using simple average annual return on capital invested...

Profit / Average Invested Money x (1 year / Years Invested)

The various economic indicators out of China is very bad. One of my China stocks plunged 30% in 2 days after reporting a loss.

The there's the fiscal cliff in US. And Europe isn't getting better.

Yet everytime there is bad news out of China/Europe/US, markets go higher because Hopium addicts aka traders and speculators expect more stimulus.

It's a difficult environment to invest in

- keep more cash
- go easy on equity exposure in your portfolio

that's all we can do