Sorry can't agree the statement DDI will help.
It works on certain circumstances.

I can answer, but I am not god. 
DDI in not performing fund - greater loss incurred. 

DDI only help provided the fund is performing afterwards.

If you are not familiar with UT/fund, you can start with small sum at first, then keep the rest of money for future.

DDI can be bad if you are not knowing what you are doing.
DDI can be bad if the fund is not performing.

There is needless for one must adopt DDI to invest into a fund.

Agents surely promote hard on DDI, because it means more and constant commission from it. 

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Added on January 12, 2012, 11:00 amThere is one fund that loss 60% over 4 years time frame, if doing DDI on this fund, it sinks you into deeper hole only.

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.

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...

Thank for the info, you provide the best explanation   

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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.

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.

kparam77 is new that why he no experience

Its you not understand what I m asking. Read thru our postings and look deeper. The answers are staring at you.

But a good effort from you. Cheers!

guys,

just wanna hear some comments...

i started my UT portfolio during mid-2008, doing RSP (DDI for some of u) RM100 monthly til end of 2010, along the way also pumped in bits on and off, then stopped cos I felt that markets are peaking. My portfolio are largely conservative-balanced except for a global fund focused on banks/financials (this fund is the biggest drag on my portfolio )

to-date my portfolio returned about 6%, annualised return=1.7%

is this considered "reasonable" for the past 4 years?

sifu sifu sekalian tolong komen

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Added on January 13, 2012, 8:57 pm

i make a simple illustration to explain to u...

Fund ABC
- got 100,000 units in circulation
- launch price at RM1.00 per unit

so, total assets of ABC = 100,000 x RM1.00 = RM100,000

let's say, a few years later ABC's assets value rose to RM150,000, so u have NAV price of RM1.50 per unit (assuming no additional units were created, so RM150,000/100,000 units)

then the fund house decided to do unit split of 2-for-1 for ABC

100,000 units become 200,000 units
RM150,000/200,000 units = RM0.75 per unit

That's unit split for u

Effect?
- lowered NAV price per unit (RM1.50 becomes RM0.75)
- assets value - UNCHANGED (still RM150,000)
- psychological effect saja...cos some investors might PERCEIVE a RM1.50 fund as "expensive"
- and it keeps the NAV price close to the original launch price

You mean i can buy 2 ABCD? Can briefly explain the benefit?

chill lar bor, already told you what i expected from an agent is staring at you, just that you didn't notice. you been and still is barking up the wrong tree.

and again good effort. 

that's great because pbmutual sales charge is 5.5% but this FSM only 1%.

For FSM, let hear from other's input. Each got their different appetite.

For PM is as below, not in sequence and not fixed fund. Need to change according to the economic climate.

PISEF - invest in top 50 largest companies listed in Malaysia with Shariah Compliance
PRSF -to achieve a steady growth in income.
PIDF - Islamic Stocks with attractive dividend yield.
PFSF - medium capitalization in diversified sectors.
PDSF -non Islamic stocks with  attractive dividend yield.

Just my own preference.

Thanks, transit and kparam77 for the info on PM.

I happened to be at Public Bank today and brought home a bunch of PM brochures. Will need some time to look though them.

For FSM equity funds, it seems that OSK-UOB KidSave is a popular choice after Kenanga growth. But "KidSave" sounds so unaggresive 

Personally, I like aggresive EPF approved equity funds that pays yearly dividends and has some overseas stocks exposure.

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.

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 pm

Yes, 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?

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?

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...

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.

oh ok.. global equities like Alliance one is ok? Btw, is fundsupermart.com safe if i buy my bond or watever thru them? If equity fund, normally how long should i hold them? If like bond, is kind of long term investment, where u just keep money inside and topup, since it is relatively low risk.. how about equity or global equity? I dont know how to see how good is their performance >< too noob lo...

Hello Sifus...
I have Rm10k in my hand only for investment purpose.
I believe I won't need this money in short term period at all.
I'm a moderate risk taker. I can all in lump sum in one stock or diversify into few stocks but I believe for rm10k capital, it's not rational choice to buy a lot of stocks, especially for long term purpose.
My investment term would be for 5-10years.
I'm planning to reinvest the dividends also.
What are the options for me?
please specify the options so I can do my research. Thanks in advance!