My suggestion, don't put the money in your GF's ASB account. Money and friendship never mix, usually end up in big problem. Even sometime in the family, money can result in soured relationships. I have seen many people in a same family (even husband & wife's) fight over money, until resort to violence.

Wow, what a violent end to a relationship. I feel for you, that is one of my biggest fear in marriage.

No, but you must deposit & maintain RM 250,000 into the trust account to gain preferred member status with 0% brokerage. If you got lots of money lying around then you can do it, but the trust account only pays interest rate of 2.5% p.a. You can calculate your trading pattern for yourself and see if it is worth it.

This post has been edited by gark: Nov 23 2011, 10:19 AM

Not exactly true.. for bond funds, PM have one of the cheapest but there are other equally good bond fund elsewhere (AmDynamic). But I admit their bond funds are still decently priced for the performance. This one is a keeper for PM.

For local equity, they do have some decent funds, but lately they are venturing out of Malaysia (cannot stick to Malaysia issit?) and that have caused them some performance hit. Also there are other equivalents around (Kenanga Fund). Unless they buck up and not spamming 5-10 new similar funds, they are losing ground on this. For the last 5 years their ranking is getting lower and lower..... I am already contemplating to move my equity funds from PM...

For outside of Malaysia equity, they are performing quite badly, but also to note that no other funds in Malaysia performs satisfactory. If you have to invest in foreign countries, it is better to invest via more established players such as Aberdeen, First State and Templeton funds. So this is a no go for PM.

This post has been edited by gark: Nov 23 2011, 11:09 AM

For Kenanga fund you can buy from as low as 1% from FSM.. so not much hit right? Or you could be just like me, split the two investment, old ones are still with PM (bought in 2003-2005) new purchases with other funds (>2005)... so no performance hit. No need to keep buying under performing funds right?

Seriously PM is one of the last stalwarts who are still charging 6.5% for their funds... when they want to join the competition...?

This post has been edited by gark: Nov 23 2011, 11:57 AM

Still is one of the highest in the country ...

No your RM 500 will be accumulated and your gains will be measured annually. However your gains are compounded daily. If safer investment it is not likely to get 2% per month or 24% per year, but depending on the type of UT some are higher risk while some are lower. Bond funds are most likely to return 6%-8% p.a. but it is more risky than FD. Returns are never guaranteed so be practical and don't be greedy over high returns.

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Added on January 3, 2012, 7:25 pmTo choose fund please read the following.

1. Morningstar rating/ranking
2. Lipper rating/ranking
3. Annual financial reports
4. Fund Monthly Fact Sheet
4. Prospectus

For item 1&2 read from Personal Money or Edge, Item 3-5 download from their website.

If you have read all the above and do not understand, either you learn more about it or get someone to guide you like a trust able consultant. Good UT consultants are rare, they really care for your investment, explain everything in detail to you and not just ask you to buy! buy! buy!.

This post has been edited by gark: Jan 3 2012, 07:28 PM

Well do you have a crystal ball? I don't so I can't tell the future.

What I advice is that you should be well diversified, with a portion in bonds, a portion in Malaysian funds and some international. Keep to your ratio and revise it one a year or so.

For me I have about 30% in bonds, 30% in Malaysia and rest in international especially AP ex Japan. Depend on your risk tolerance, you might want to have more in bonds for a less volatile portfolio.

Neither you or your friend have crystal ball, so you cannot predict what will happen in 14 years. If lets say hypothetically, China went back to Communist ways and kick out all the capitalist, then what happen? 14 years is a long time.

BTW, most Malaysian funds (PM included) have very bad performance in China related investments, almost all of them cannot beat the benchmark. Real benchmark ah, with dividends reinvested not the static Index benchmark that most fund houses use.

This post has been edited by gark: Jan 11 2012, 10:07 AM

Basically most of International Funds managed by Malaysian Fund houses all under performing badly vs. benchmark. This is what you get when you don't allow foreign fund houses to set up in Malaysia.

I am invested in DWS China Equity Fund and First State Regional China Fund.

For India.. First State Regional India is a good performer...

This post has been edited by gark: Jan 11 2012, 10:14 AM

Yes..these are UT.. google them.. if you want to know more.

Biggest joke of the year... Either that or, your friend tried to con you on the workings of UT and returns..

Having many units is not equal to earning... The only guarantee is that you 'friend' will get portion of the 5% of your RM 500 every month...

This post has been edited by gark: Jan 11 2012, 10:58 AM

I don't have crystal ball.. can't tell you the future yet.

But what I can tell you is the PAST 5 performance of PCSF.....*drumroll* it has LOST -38% of the money invested. Take a look at the picture below...

Basically the fund lost 40% over the last couple of years. Remember once you lost 40%, you need to gain back 66% to break even.

Loss is NOT equal to discount. If it is discounted it will sell at 40% below NAV, but this fund is selling at 100% NAV.

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Added on January 12, 2012, 10:00 amYou want professional help, you need to engage a PAID financial advisory, who will not sell you anything, but only advise you. Other than that most of them are glorified salesman.

Basically for all the funds out there, about 90% are under performing the benchmark over long term, so don;t simply go into any 'chapalang' fund.

This post has been edited by gark: Jan 12 2012, 10:00 AM

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

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

Yes and No. Yes for china growth engine is still growing, and no because no good local fund managers can manage Chian investment well, so far.

AmDynamic has been steadily reducing the risk factor of it's bond fund for the past 2 years which is a good move. They have got rid of most BBB and A grade bond and loaded up more on AA and AAA bonds. So there risk and also the earnings will be lower now and should not match 9%-10%, which is an exception during the 2008-2010 period.

Anyway the fund has a good performance with 3 year & 5 year annualized return (minus all fees) of 10.16% and 8.24% p.a. This does not include the 1% NAV fee when you sell.

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Added on January 16, 2012, 1:07 pmEmm you sure? It kinda depend which fund you buy. The china fund i bought in 2009 so far have 40% return for me.

This post has been edited by gark: Jan 16 2012, 01:07 PM

I am also anticipating the OPR interest rate to be reduced soon by BNM.. due to economic slowdown, so longer term bond funds will outperform.

Basically.... my rule of thumb in investing in bond funds..

1. Interest Rate Increasing - High Quality & Short Term Bond Funds will outperform
2. Interest Rate Reducing - Lower Quality & Longer Term Bond Funds will outperform

I am also looking at Indonesian Govt Bond Funds...last year gained 17.1%. Based on better S&P debt ratings, performing economy and a very high rate (6% vs 3 % for MGS). But the risk is much higher...

Bond fund can be exciting also...

This post has been edited by gark: Jan 16 2012, 01:33 PM