Bro and Sis ,

My 2 cents sharing =)
Bond funds works more or less like Unit Trust Funds ...
With the slump market condition ... 70% of world company is posting losses.
Wait for their 4th quarter report and 2008 annual report for those listed companies by end Feb and early march ... there will be another dive in our Equity market....

So .. how can unit trust perform as Unit trust is basicly Fund managers buying the shares for the behalf of us(investors).

The point i would like to say is , it is not how much the equity or UT has drop , but it is the economic condition we are looking at ...

1st case ... using EPF to buy Unit trust ...
Basicly EPF generates 5.5% per annum for your balance outstanding 9 this year could be lower due to economic condition.)

So ... if u take EPF out to do investment , could in confidently find any funds that can yield to you 5.5% per annum ?
Regardless it is a bond fund or Unit trust fund.

Dont forget u pay 11% for ypur EPF , your boss pay 12%(total compounded figuere is 5.5% for 23% of your salary yearly).

Last time (2206 , 2007 )investor fork out money from EPF due to the market bull run. Per annum it can yields 30% 40 % 50% perannum.. so it can covers your 5.5% loss in EPF plus the 6.5% sales charge for Unit Trust... U can work out the figure ....

now , no way .... if your fund could not even breakeven , dun expect it can yields to you positively....

For the question , which fund good to buy ....

My 2 cents .... Unit trust fund is basicly buyiing shares by professionals ....
In the Unit trust mandate , they need to invest proportion of Capital they hav in Equities .. its the fund obligation (read at the prospectus) ... by hook or crook .., they cant hold 100% cash even market is bad ...

Thats why in the economic bad situation, good fund managers with good track records also posting losses ...

Like us investor, we can choose to hold shares , or cash whenever we want ...
Make an example .... if u as a fund manager holds 5% of genting shares and the manager dump most of the shares due to the market uncertainties .... genting will be in deep ship and the price will hit limit down .... Do you think that Genting will let u buy and dump 5% of his company shares that easily ?

For buying UT , cost dollar averaging is a technique being used by most of investor ...
The point i would liek to share is , what funds are you averaging ?

A high growth Equity Funds for New companies and IT base?
Or
A more conservative blue chip company with high dividend yield ?

During bull market we op for choice no1
For bear market we go for 2nd .... as blue chips has been bashed down... for IOI, Genting , Sime, Pbb to grow their prices is few years time is sap sap sui...

U try look at technology Funds .... the company anytime can be delisted from bursa ...

For me , it is more on selection on averaging of the 'mandate of the fund' - what the fund is buying and what is the proportion holding .

2nd , who is the fund manager handling the funds ?
I will chosoe the fund manager who has a good track record at least 5 years ago ... with a good return record ...

then i will pump my money to him ... periodically ...

All this you can view in the internet ...

Cheers