Understanding Mutual Fund
Written by Irwan on July 18, 2006 – 9:01 pm
Thanks for one of our visitors here for asking me about this matter. Let me summarized technical detail of Mutual Fund or Unit Trust.
- Mutual Fund is a group of selected stocks/bonds that are professionally picked by the fund Manager. The picked stocks/bonds are believed to yield acceptable returns.
- The selling price will be charge around 6.7% percent above the Net Asset Value (buying price)
- Selling price = the price you have to pay to buy the mutual fund
- Buying price(NAV) = the price that you will get when you sell your mutual fund
- There is a 1.5% annual fee (depends on type of unit trust) that you have to pay each year.
When will I know that I have actually gained profit?
Mutual fund price is just like usual stock price, which goes up and down everyday. The price is determined at the end of trading period each day. Below is the price table for Public Mutual Funds:
Basically, you will buy your mutual fund using ’sell’ price (right-hand price) and you will sell your mutual fund using ‘NAV/buy’ price (left-hand). To earn profit, the current NAV must exceed the sell price when you bought that fund. From past performance, Public mutual could achieve 6-15% per year.
Example of calculation:
A year ago, I bought RM10000 Ittikal Unit trust with selling price RM 0.7500 per unit. So total unit that I get was 10000 / 0.75 = 13333.33 unit
Yesterday, the NAV/buy price has became RM 0.8004. I decided to sell all my unit trust. So the total money that I get from the selling is 13333.33 x 0.8004 = RM 10672
Basically, I earned RM672 from this investment.
Hope this could answer some of your questions.
Posted in Anatomy of Investment |
July 18th, 2006 at 10:29 pm
Thanks for the info.
By the way, can you get your profit by monthly, or it is fixed for a year?
thanks.
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July 18th, 2006 at 11:10 pm
Dear Mr. Awang Razdi,
mutual fund have 2 kind of profit.
1. the appreciation of the value ie. the the NAV value increase over time
2. the distribution yield. Distribution yield is given according to the type of fund. Some funds give 6-8 % per year if the business is good. What it means by distribution yield is a percentage given to shareholder in term of bonus units. However, after the distribution, the NAV will reevaluate to the same percentage of the distribution.
In simple term: If the distribution yield is declared as 5%, the NAV will be reduced by 5%.
To answer your question, there is no monthly or yearly profit. It’s just depend on the price perunit at the current moment.
By the way, as far as I know, Maybank offers online service for unit trust. You can buy and sell your unit trust just with clicks of buttons. So you will have a total control of when to buy and when to sell. That’s neat
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July 18th, 2006 at 11:23 pm
thanks for the great info.
I will invest in unit trust very soon.
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July 18th, 2006 at 11:33 pm
oh don’t thanks me.. it’s my pleasure to have you here. good luck on your investment
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July 21st, 2006 at 1:02 pm
Interesting…. Very interesting….
Thanx for the compact and precise explanation. I’ve seen the buy/sell price on tv & newspaper all my life but only today that I understood what they mean!!! Thanx Irwan
Personally, the stock market is the scariest business that I could ever imagine. Not only I don’t understand a thing (ehem…hehehe… *blush*), I believe that you’ll go bankrupt if you ever get involved in it!
Thankyou for sharing your real-life experience. I’m getting more and more interested in this now hehehe….
Keep us updated with more info please.
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July 27th, 2006 at 2:49 pm
Irwan,
Thanks so much for your explaination. Read and kinda get into the mood to start investing now. I have only about rm2k to invest. Is it sufficient or is there a minimum amount needed for investment. I believe by starting small, there ‘ll be a chance for me to learn and grow from there
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July 29th, 2006 at 2:29 pm
Tunkukai,
the minimum investment for Ittikal fund is RM500, it is the hottest fund(syariah) in Public Mutual offering. Just checkit out at your nearest Public Mutual branch. zBtw, I’m reading a book about the flaws of mutual fund. Will keep ya updated..
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September 13th, 2006 at 12:34 am
Salam,
Basically, I don’t think you get RM672 for your RM10,000. You should have deducted your RM672 for various fees.
For people who not fully buying the max units of their ASB units, I advised them to invest their money into ASB first. Then, focus on other channels of investment.
Btw, nice for having this sharing/discussion about investing though. Keep up the good work Irwan!
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November 12th, 2006 at 2:21 pm
Salam,
Very interesting. About the ASB, can someone share hows it work? I’m new in investment so hope some one can share some link for beginner lime me
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November 12th, 2006 at 2:34 pm
ASB is the simplest form of investment. it’s just invest and profit scenario because the capital is guaranteed by government. You might ask why government want to bear the risk of losing money. The answer is our government wants a lot more people to invest in the market, especially Malays. That’s why the ASB limited the investment to Malays just to encourage the investing habits among the Malays.
You can go to any bank/post office to start investing in ASB. Ask them to open an ASB account for you and they will be glad to do so. that’s all what it takes.
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December 6th, 2006 at 11:28 am
Hi there, I’ve just started working for only 5 months and knowing the importance of investing; I hope to start my investment asap to achieve my financial goals. Would like to get your opinion what essential investments steps I should do right now in order to cover more grounds later in the future.
Fyi,my initial plan would be to take up the ASB loan, and then taking UT. However, I am confused on which is the best loan offer I should take up (different banks seems to offer diff rates) and does it matter how much I loan? As for UT, the myriad of funds makes it confusing for me to choose.
You guys rawk and thanks in advance
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December 6th, 2006 at 4:42 pm
hi Syaliaa, realizing that investment is a part realizing our financial dream is a very crucial part. for the start-up, i suggest that you go with ASB, which is what you have exactly planned.
If you opt for loan, u have to top up the investment with your own money too. From other visitor calculations/suggestions, it’s the best way of doing asb loan. About which bank is the best, i can’t really comment coz i don’t have any experience :). maybe other visitors can suggest one.
UT is a good way to diversify but it can’t beat ASB’s profit/risk ratio. If only you want to get more return with extra risk, UT is the way to go. if not, i suggest you just stick with ASB until it reaches the limit.
It can be said that most moderate-risk UTs are proportion to composite index, so choosing which one is the best is quite hard. Public Mutual is a good unit trust if we considered it’s past performance. my Ittikal Fund from PM soared about 20% in 6 months, thanks to the composite index’s hike.
regards
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December 7th, 2006 at 11:34 pm
Every investment comes with risk i.e. the higher the return potential, the higher the risk. unfortunately, many UT agents only mentioned about the return without explaining about the risk.
Secondly, all UT comes with charges. Therefore, if the unit price increased by let say 6%, it doesn’t mean that you have made a profit of 6% because you buy the unit at selling price, which is already 5% to 6.7% higher than unit price.
Next, increase in unit price also means nothing unless you sell your unit at that price. UT is not like FD. It is like owning a house, although the market price is high you get nothing unless you can sell your house at that price.
ASB? If you read Utusan Malaysia early this week, then you should know that it doesn’t comply to Syariah.
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January 23rd, 2007 at 9:26 pm
Mr. Adnan, pardon me if I say that your claim needs to be justified. If it is true that ASB does not comply with the syariah, I don’t think there is a social announcement regarding that issue by the government. There are just merely writers’ claims which have mixed views about that. I don’t blame them because they have the right to say whatever they think, based on what they perceive. The government, on the other hand, does not say that ASB is wrong and would absolutely not allow ASB to operate if it violates syariah law. We have the ministers to lead and tell us, and they will tell us and prompt ASB to stop if it truely violates this law. Let them do their jobs and we as the members of this society, follow the pathway that have been created in front of us. The objective of our government is to create another channel to increase the bumis’ wealth. If you understand politics and the nature of our complex society, you can understand why the government is doing this for us. And please don’t make a religion sounds too rigid, as if the absolute truth is already being sentenced, for the truth lies not in the writers’ perception-laden words.
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January 27th, 2007 at 8:39 am
Salam.
Hi Irwan,
I must say that this is a great reference site for beginners in the investment world. Glad I came across this site and thanks for sharing so much information. I’m still surveying which unit trust is the best. Before this I’m investing in ASB, since my friend said that some of the money goes to non-halal business and of course the dividen we obtain also not halal. Therefore I checked the JAKIM e-fatwa site and I found a fatwa from Terengganu stating that if the halal status of the business/ investment process in doubtful, it should be avoided. However it only depends on certain states like Terengganu and Selangor but somehow a contradict decision made by Majlis Fatwa Negeri Sarawak.
This site will be helpful for all of us to make our decision whether or not to continue/ start our investment in ASB.
http://www.e-fatwa.gov.my/mufti/fatwa_prosearch.asp?search=asb.
As for me, I decided to sell back almost all of my shares in ASB and will start investing in one of the Islamic trust funds soon.
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March 9th, 2007 at 10:45 am
Kategori : Muamalat
Tajuk :
HUKUM WANG DIVIDEN DAN BONUS ASB
Isu :
Jawatankuasa Perunding Hukum Syara’(Fatwa) Negeri Selangor telah menerima surat daripada seorang hamba Allah daripada Tanjung Malim yang bertanyakan berkenaan dengan hukum wang dividen dan bonus ASB dengan soalan seperti berikut :
1.1. Adakah wajib dikeluarkkan zakat daripada wang bonus dan dividen ASB.
1.2. Bolehkah wang tersebut digunakan bagi menunaikan Fardhu Haji Ke Tanah Suci Mekah.
Maka Jawatankuasa Perunding Hukum Syara’ (Fatwa) telah diminta memberikan fatwanya mengenai permasalahan tersebut.
Keputusan :
1. Ahli Jawatankuasa Perunding Hukum Syara’ (Fatwa) telah membincangkan perkara di atas dengan penuh teliti dan panjang lebar dan mengambil keputusan seperti berikut :
1.1. Zakat Daripada Wang Bonus Dan Dividen ASB
Keputusannya :
” Wang bonus dan dividen yang diterima daripada hasil pelaburan ASB adalah tidak diwajibkan zakat kerana pelaburan bercanggah dengan hukum syara’ ”
1.2. Bolehkah wang digunakan pergi menunaikan Haji ke Tanah Suci Mekah
Keputusannya
” Ahli Jawatankuasa yang hadir bersetuju memberi pandangan bahawa oleh kerana pelaburan ASB pada masa ini, terdapat pelaburan di tempat-tempat yang bercanggah dengan hukum syara’, maka ia tidak
diharuskan sehingga pihak ASB membersihkan dan tempat-tempat tersebut.
Ahli Jawatankuasa Perundingan Hukum Syara’(Fatwa) yang hadir bersetuju memberi pandangan bahawa. oleh kerana pelaburan ASB pada masa ini terdapat pelaburan di tempat-tempat yang bercanggah dengan hukum syara’. maka ia tidak diharuskan sehingga pihak ASB membersihkan dari tempat-tempat tersebut.
http://www.e-fatwa.gov.my/mufti/fatwa_search_result.asp?keyID=1155
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April 21st, 2007 at 8:58 am
Talking about ASB, there is other PNB fund. From the disussion only ASB and UT being mention. How about ASN, ASN2 and ASW 2020. Is this fund not as good as ASB and UT.
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May 6th, 2007 at 6:22 pm
Sir, i am 26 yrs old and still very new in the financial world… my friend told me about the Mutual Fund and ask me to invest…well how should i start???
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May 6th, 2007 at 9:06 pm
Hi Sir, Thanks for visiting my blog.
You should start like you are starting everything else. First of all, you have to know you capability as investor. You might want to take risk personality quiz here.
http://www.irwan.biz/check-who-are-you/
this will give you insight on how much you can afford to spend on investment and what type of investment suit you.
Then you have to find the best mutual fund that fit your investing personality.
I thing this hould be enough to get get you started.
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May 18th, 2007 at 4:25 pm
Good explanation on UT by My Irwan.
I don’t agree with high return comes with high risk. Looks to Warren Buffett, the most successful investor in the world, his philosophy of investing in the stock market by buying undervalued companies leads him to consistently in the top spot in Forbes list of the most riches man in the world.
In Malaysia, we have iCapital fund that practices the same philosophy. You can read my other opinion on this in my blog (in Malay) at BlogSAHAM
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May 21st, 2007 at 2:23 pm
Irwan ,
Thanks alot for the explainations. It ’s indeed handy and could be a stepping stone for anyone who wants to put their foot in the investment world.
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August 2nd, 2007 at 11:13 pm
Hi Irwan,
Very good explanation to Mr Peter. Your how-to-get-started guide is brief and easy to understand. No technicals that can confuse new investors.
I’m a remisier and also a UT agent. I have clients who invest both in unit trusts and stocks. Unit trust for med to LTerm investment as he is buying a basket of shares. The risk is lower than investing in stock mkt. Investing in stock mkt provides higher returns(depends on mkt sentiment and timing). Higher Risk = Higher Returns.
To be a successful stock mkt investor, one need to be knowledgeable abt the mkt.
But unfortunately, some of the retail players are speculators. They make money from the mkt, and they also lose BIG money.
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August 6th, 2007 at 5:18 pm
Alo Mr.Irwan,
Wat smart person you are
Can you check my calculation as below?
I invested RM2000 in PBIF. Selling price at RM0.68. So, my units is (2000/0.68) = 2941.18 units. Then after 6 month,the NAV/buy price has became RM 0.8004. I decided to sell all my unit trust. So the total money that I get from the selling is 2941.18 x 0.8004 = RM RM 2354.12.
Basically, I earned RM354.12 from this investment.
But, service charges is 6.5% per NAV per unit. Then deducted (6.5%*0.8004*2941.18) = RM 153.07.
Excluding annual mangement fee, I only gain RM201.10.
It’s right?
Thank you
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August 6th, 2007 at 7:21 pm
Mr Don,
The difference between selling and nav/buy price is that selling price already includes the 6.5% fee. if your stated selling price is the correct selling price,you don’t have to re-include 6.5% fee when you calculate the earnings.
thus, from your calculation, RM354.12 is the net income of your investment (in exclusion of the annual fee)
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August 6th, 2007 at 7:43 pm
Mr naan,
I strongly agree with you that our investors are largely speculators. This actually defeats the purpose of mutual fund where we move the burden of speculating the market to the fund managers.
Most mutual fund investors don’t really know how to time the market, that’s why we choose mutual fund instead of directly investing in equity market ourselves. However, some of us feel that mutual fund is too easy and we need to do something to make us look more in control.
So some of us inevitably feel that market is now too high, or will imminently go down. Or we feel that upcoming events (like General Election) will definitely take the market down with it. All of the feeling of wanting to do something might really hurt the investors themselves.
Be careful of such insecure feeling. Good investing.
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August 6th, 2007 at 11:05 pm
Hi Don,
I’m not sure what fund you’ve invested in? PBIF? But based on the given selling and buying price for the fund. The simple estimate return is 17.71% or RM354.12.
Selling price already included the 6.5% service charge. Management/trustee fee, etc.. are all calculated and could be obtained from Accountants’ Report in prospectus. Therefore, investor don’t need to worry about that.
For more samples :
http://financial-freedom-unit-trust.blogspot.com/2007/07/public-mutual-fund-performance-chart.html
http://financial-freedom-unit-trust.blogspot.com/2007/07/public-mutual-fund-performance-chart_27.html
[Reply]
August 7th, 2007 at 9:31 am
thank for you feedback irwan and kkchow23
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September 1st, 2007 at 5:37 pm
Hello Everybody,
How’s everything? When I started to join PM, my perspective is similar to Mr. Irwan. Yet, there is better way to manage your PM funds and gain better returns than ordinary investors. Some people say speculative, I would say analysis.
Imagine that you’re investing an amount of lump sum at Public Ittikal fund on month of Feb 2000 and expected to gain an average return for 3 years. What was happened in this period? You’re not gaining as you expected. In fact you lost around 7% from your investment.
And now drag your duration of investment to another year. You only gained around 22% for 4 years. If you calculate, the average return is only 5% per year. Is it a good investment? Of course there is a way to handle this situation. By using concept of dollar-cost averaging, your agent might advise you to top up the investment or extend the duration of investment since the market was bullish. What if you didn’t have the money? Or you didn’t want to take further risk, since you never know what would happen next few years?
Learn the smart way of investing in unit trust. It requires analysis and skills. With God will, I can further elaborate the situation. Please contact me if you’re really serious in investing in unit trust. Send an email to zuraini.yusof@gmail.com. Happy investing, take care and have a great day!
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September 3rd, 2007 at 5:02 pm
Dear All readers,
I heard/read some PB Equity fund eg. PCSF service charge is 6.5% and some PB Bond fund eg. PISBF service charge is only 0.25%. Will I be right when I say if I invest RM 100,000 into PISBF first and later switch to PCSF (Just Pay RM25 or waived if Gold member), I can save 6.25% service charge (6.5%-0.25%) that will save around RM 6250 ? Appreciate if anyone can help to clarify the issue. Thanks.
Rgds,
Mr Chin
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September 3rd, 2007 at 5:37 pm
Hi Mr. Lim,
The units in unit trust are categorized into two:
1) loaded
2) low-loaded.
Loaded units are units previously already with 6.5% service charge (equity/balanced - 5.45% if during promotional). Non-loaded units are units previously already with 0.25% service charge (bond/money market).
From low-loaded switch to equity/balanced funds, you’ll have to include 6.5% service charge.
Unless you do switching from loaded(bond) / equity/balanced to another equity/balanced funds, there’ll be no additional charges except for the RM25.
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September 3rd, 2007 at 6:29 pm
Dear kkchow23,
Thank you for your reply.
I can see there are number of BOND available for switching eg.PSBF,PIEBF,PISBF .
For a Scenario
============================
(When I decided to invest in PB)
1. If I First invest in a Loaded Fund A eg.PCSF => I pay 6.5%
(When I decided to take less risk)
2. Then,I switch all to a Low-Loaded Fund B eg.PISBF =>I pay RM 25
(When I decided to take more risk)
3. Next,If I switch back to Loaded Fund A eg.PCSF => I have to pay 6.5% AGAIN ??? , which end up paying total 13% in this scenario???
Pls helps. Thanks.
Rgds,
Mr Chin
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September 4th, 2007 at 11:34 am
i can confirm that if you do between equity-to-equity, you don’t have to pay the 6.5% fee again. it’s just RM25 per transfer for both ways. I heard it’s also like that for equity-to-bond transfer but i’m not sure about that the reverse (bond-to-equity).
correct me if I’m wrong.
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September 4th, 2007 at 8:16 pm
Greetings,
Switching fund from Bond/MoneyMarket to equity if LOW-LOADED units then have to pay service charge(SC) usually 6.5% RM25. But if it’s LOADED, you only have to pay RM25.
Remarks:
Loaded - you have paid SC usually 6.5% at point of purchase
Low-loaded - you only pay SC 0.25% at point of purchase
For those who have joined PM, please read Master Prospectus under Key Features of the Funds. For PM syariah based fund page 16-17. You got to understand this, or you may ask your agent for further details.
TQ.
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September 4th, 2007 at 8:57 pm
Hello Again everybody,
Switching is a very sensitive subject to discuss. Some agents might say don’t do or try to avoid it because don’t know how to tolerate the risk. UT itself has degree of risk for investors to tolerate. For me, as to protect the interest of my investors I’ll guide them to use it whenever necessary with some analysis and tolerance of risks.
Look back at the situation for last 2 months and last Feb or back to year 2000. Some of us are losing up to 16% on some of funds. Well, if you are really looking for a real long term investment it’s ok especially EPF investment. But for cash investor between 3-5 yrs might not be ok. You never know how much you can absorb the risk.
I’m arranging appointment for serious potential investors only. And if you have already had an agent and satisfied with his/her service, just stick to it. I’ll educate new comers before investing and use certain tool when time comes. Then up to you to decide.
Which one is good? You have an option and use it, or keep quiet.
I’m really glad if you can email to me at zuraini.yusof@gmail.com for more information. Only serious investors please.
TQ
[Reply]
September 4th, 2007 at 10:47 pm
Hi Mr Chin,
Based on you scenario,
1. PCSF (investor pays 6.5% service charge) loaded units
2. Switch to PISBF (investor pays RM25) loaded units
3. Switch to PCSF (investor pays RM25) loaded units
———————————————————-
Give another scenario,
1. PISBF (investor pays 0.25% service charge) low-loaded units
2. Switch to PCSF (investor pays RM25 6.5% service charge) loaded units
3. Switch to PISBF (investor pays RM25) loaded units
———————————————————–
Last but not least, Irwan’s example
1. PIOF (investor pays 6.5% service charge) loaded units
2. PIADF (investor pays RM25) loaded units
Hope that answers most of the doubts…
Sorry for the late reply
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September 5th, 2007 at 12:09 pm
Thank you for everybody especially kkchow, Zuraini and Irwan. I think I am crystal clear regarding the meaning of “Loaded” and “Low-Loaded” units by now far more than the description and table in the Master prospectus. Thanks.
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September 8th, 2007 at 4:18 pm
This is something true about an experience that slyeo related to me from his friend and I hope people will take notice about and not be fooled. Servicing agent advised to switch from one fund to another fund (equity to bond). But in actual fact, it’s redeeming and then reinvesting the money into another fund (cheque involved). This will cause the investor to profit less cause he’ll have to pay service charges again when he reinvest the money. Moreover, if it’s a so-called equity switch to bond, he’ll charge 0.25% which is more that the actual switching of RM25. Then, if want to switch back to equity, now have to pay another 6.5% and RM25. This is so burden to the investor and profit for the unethical agent (he’ll receive the commission).
Please try learn about your investment and what’s happening to your fund. If there’s any problem, I’ll be glad to help if possible.
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September 9th, 2007 at 12:29 am
Greetings,
First of all would like to thank to all new comers who have just joined PM. Welcome guys! For those who still want to learn further on unit trust(UT) products, I believe this is one of the best blogs for you guys to start.
I guess most of bloggers here know that Public Mutual is the best for UT investors because of consistency in returns. Well, it’s not only that. If you are up to date especially in information technology, all your investments in PM is just at your finger tip. Most of investors miss this out.
We call it TELEMUTUAL. A state of the arts in servicing industry, where all information can be retrived and transactions can be done thru a PHONE. The services including:
* latest fund price
* fund information
* stock market commentary
* balance
* repurchase/redeem
* EPF next withdrawal date
* best of all, SWITCHING
Well you got your choices, either utilize your agent OR do it yourself, just in case. Usually I will advice my client to fill up this form along with the other investment forms, especially cash investors.
Until next time, I’ll show you other great gadget when dealing with unit trust… In case you have any other inquires don’t hesitate to contact me at zuraini.yusof@gmail.com.
Thank you and take care!
[Reply]
September 10th, 2007 at 3:16 pm
I really think all agents should educate the clients/investors so that they understand what Unit Trust really is, how it works & explain clearly the reason for each recommended move. Maybe the clients are too busy or not interested to know more about unit trust, as long as their agents can monitor their funds & help them reap good profit. So, perhaps I shouldn’t be too surprised to see that many investors simply leave their investment to their agents to monitor and do as the agents instruct, without understanding the rationale behind each action.
As a result, investors may suffer consequences like profitting less that what they could have gained because some moves may actually benefit the agent more at the expense of investors as they may not be aware of the implication, fees/surcharges involved etc. Hence, I strongly advise all investors to get a second opinion before any action is taken and be in control of your own investment.
Another observation is that many investors invest in unit trust as if it’s the share market, I guess that’s why there’s so much discussion on switching, like in share market we sell off within months, weeks or even days to get some quick profit. In unit trust, we’re talking about investment, not speculating or quick profit-taking. Any excessive switching would disturb the growth & performance of the fund in the long run and affect the job of the fund manager. I guess that’s why fees are imposed to prevent investors from ’speculating’ as if they’re selling shares in the stock market. Imagine a majority of investors switch or repurchase after gaining a profit of say 5-10% within a short period of time, this won’t do the unit trust industry any good!!
A general glance at the quarterly fund review will tell us that most funds, excluding bond, give an average return rate of close to 100% if not more, so why settle for less by speculating in months/weeks instead of investing in years (1-5 or even longer)? On the other hand, UT is not 100% risk free, so nothing is guaranteed and the fund review can only be used as a reference to guide us in our investment. Switching or reinvesting at the right time could help us lock in & secure our profit, but if executed wrongly we get less that our fund is capable of giving us.
[Reply]
September 10th, 2007 at 8:34 pm
Hi Everbody,
As mentioned earlier some of us might not be comfortable to discuss about some of the features in unit trust for some reasons. I guess words like “excessive”, “speculate”, reward and risk tolerance should be elaborate further so that investors know what they are dealing with.
Most of the readers here have come to me to get clear picture on these scenarios. They’re happy when there is transparency. There is no obligation when you get opinions from other agent. Grab as many information as you can. Make your own judgment. As to respect some of the opinions, I would rather not to discuss it here.
Get your fact and figures first before take any risk. It’s your hard earning money, and you deserve to know more. Take care guys!
[Reply]
September 10th, 2007 at 8:50 pm
Hello again,
There is a great investment suitability questionnaire in one of the web about unit trust.
http://www.hsbc.com.my/1/2/personal-banking/investments/unit-trusts/unit-trusts-transaprency-and-impartiality
The questions help new investors understand their attitude towards risk and rewards tolerance. In the end, the analysis will determine which type of risk category you fall into.
I think this is a great tool. But unlike Public Mutual web, I won’t be able to find their fund performances. I wonder why?
Try this out and have fun!
[Reply]
September 12th, 2007 at 11:21 pm
I’ll agree with what slyeo said. ” Any excessive switching would disturb the growth & performance of the fund in the long run and affect the job of the fund manager. “ The reason why we invest thru unit trust is because we want someone with the knowledge to invest on our behalf and hopefully gives us profit in return, someone who’s professional (fund managers). If we’re to act as a fund manager, then it’s even better just to invest directly in shares, etc… that’ll even save the service charges of 6.5%. Use switching to our benefit and not for a loss cause.
[Reply]
September 13th, 2007 at 12:41 am
Salam Ramadhan untuk muslimin dan muslimat yang melayari blog ini. Hiasi bulan yang mulia dan penuh keberkatan ini dengan amal ibadah dan kebajikan, Insyallah. Selamat bersahur dan berpuasa!
[Reply]
September 14th, 2007 at 4:33 pm
Hi Irwan,
A consultant from CIMB Wealth Advisors approached me to invest in unit trust. Mentioning about 10-15% p.a. return in 3-5 years. Is it guaranteed return?
Please advise.
[Reply]
September 16th, 2007 at 7:30 pm
There’s never guaranteed returns in unit trust.
Even for capital guaranteed funds, you’re assured that you’ll get back at least your initial investment if you keep it within a designated period of time.
http://financial-freedom-unit-trust.blogspot.com/2007/08/capital-guaranteed-fund-explained.html
What we can say is that basically if you based on past performance, your chances are more likely to obtain around 15% returns.
When investing in unit trust, there’s always risk. Without risk, definitely the returns won’t be that high. Take for example fixed deposit (FD), you’ll get the returns based on the rates offered.
[Reply]
September 17th, 2007 at 10:24 am
Thanks for the info.
Some people are afraid of changes. Tend to stick to what they know best… Save your savings in the safest place where the return is secured.
Say EPF yield around 4-5% p.a. An EPF holder has the choice to invest his/ her money in unit trust, but some don’t want to take that risk. So, their money will grow slower, slower than the inflation rate now.
In the end, after retirement, they end up with small amount of money to live for the next 20-30 years.
Why not take the risks for a small portion from your EPF Account 1. At least it’s a start to financial freedom, right. I don’t have minimum EPF Account 1 to invest yet, but I save in ASB and Unit Trust Savings Fund.
[Reply]
September 18th, 2007 at 8:42 am
Assalamualaikum and good morning to all forumer.I’m 24 years old from KB.I’ve just invested in Public Islamic Asia balanced Fund last Sunday with sum of RM 10700.I will top-up it later.
Is it correct by join it when the unit price is low rather than when it is high.This fund is newly launched.
I’m new in this forum and I’ve join Internet Based Investment before this.
can you all give as many as you can the tips about the investment.
[Reply]
September 18th, 2007 at 10:33 pm
Hi aak,
Changes are unavoidable in this current situation. If you try look at the bigger picture, since inflation rate tends to grow higher and higher, we have few choices left for us. In order to cope with it, we must make sure that our savings actually appreciate more than the inflation rate.
It’s actually good to start investing even if it’s just a small amount in the beginning. Remember the magic of compounding effect.
http://financial-freedom-unit-trust.blogspot.com/2007/05/compounded-savings-plan.html
If your still new, then why not try few funds available at the market and see how it’ll perform. There’s no harm diversify your investment. Happy investing
[Reply]
September 19th, 2007 at 4:29 pm
Hi,
i want to ask about public mutual unit trust.
is it good bank for investment?
Im in consider invest at PBIBF, PBCMF, PBICMF. but i dont know which one is good?
Because this is my first time in investment and I have only about RM1000 to invest. i start from small amount first.
if i invest in PBICMF and my fund is RM1000, so how many profit i can get and how to calculate?
Thanks for everyone.
[Reply]
September 19th, 2007 at 11:23 pm
Hi MK Leow,
Refering to the funds your considering, they’re PB Series Funds distribute by Public Bank branches, sales by customer service officer.
1) PBIBF (Bond Fund-Shariah)Mar,2006 - conservative
2) PBCMF (Money Market Fund)Jan,2007 - conservative
3) PBICMF (Money Market Fund-Shariah)May,2007 - conservative
For PBIBF, for 1 year performance roughly about 4.81%
For PBCMF, since launch roughly about 2.05%
For PBICMF, since launch roughly about 0.95%
Bond funds tend to outperform more than money market funds.
Basically we say that both PB series funds and Public series funds are the same as it’s managed by the same fund managers available Public Mutual. The difference is only the service provided. Depending on preferences, sometimes you might consider having a servicing agent or just going to the customer service officer at the bank. Try check out my blog if your free. If you would like to know more about the Public series funds and how to financially manage your investment, you can contact me kkchow23@hotmail.com
[Reply]
September 20th, 2007 at 12:29 am
Salam & Hello to everyone,
There are about 49 funds currently available for both Public Bank (PB) and Public Mutual (PM) series of funds. PM alone has 36 type of funds; 12 Islamic and the rest are conventional. Ironically, both PM and PB are managed by the same fund managers.
I guess major difference between PB and PM is you’ll get service from your agent for PM while for PB you’ll have to deal directly with the bank it self. Other than that, including service charge is no different.
In general, what KK said is correct. Bonds perform much better than money market (MM). In term of performance, bond prices fluctuate at a conservative rate, whereas money market grows almost at linear rate. If you enter bond fund, you should expect between 4-10% of return per year, yet MM can’t expect more than 4% per annum.
Some experts say, if you are entering Unit Trust with Bond or MM funds, you are about to loose your money by law of inflation. Learn how to gain better return by taking a small risk with higher reward. I can share my study with people who have interest to analyze each of PM and PB funds in depth and applied to current situations. Send me an email, I’ll send you a file of data analysis how these funds behave with market situation. Nothing’s wrong with sharing information and gains as much knowledge as you can.
Just for your information especially new investors, based on last major market crash until now, (20/08/2007-17/09/2007), top 5 funds, best in returns and recovered:
1. PCSF – PUBLIC CHINA SELECT FUND - aggressive -20%
2. PBIAEF – PB ISLAMIC ASIA EQUITY FUND - aggressive – 15%
3. PFEDF – moderate – PUBLIC FAR EAST DIVIDEN FUND – 13%
4. PIADF – moderate - PUBLIC ISLAMIC ASIA DIVIDEN FUND -13%
5. PAIF – aggressive – PUBLIC ASIA ITTIKAL FUND – 12%
My advice, don’t focus too much on past, see the future, and don’t go for average, go for the max…zuraini.yusof@gmail.com
TQ
[Reply]
September 20th, 2007 at 2:41 pm
hi kkchow, thanks for your reply
you say Bond funds better than money market funds, so how about PBFI?
now i consider in PBFI & PBIBF.
i should go where to invest, publicbank or direct go to public mutual?
those UT product got period? untill when?
thanks
[Reply]
September 20th, 2007 at 5:38 pm
Hello there!
I was approached by one of my friend who is a PM unit trust consultant to invest in Public Islamic Asia Divided Fund (PIADF) abot 2 months ago,but i’m more interested to invest in Public Islamic Dividen Fund (PIDF) after searching some of its information and viewing its performance from the past year chart, how ever i still wonder do we have to follow the consultant advice to invest in certain series of fund instead of follow our own interest?, so I need some advice
TQ
[Reply]
September 20th, 2007 at 11:48 pm
Hi mk leow,
Both PBFI and PBIBF are bond funds, so depend on how the fund manager allocates the investment, the profit might vary. What we generally term bond funds are profit expected to be higher than FD roughly about 4%-6%, anything more than that is a bonus. It’s less risk in a sense that investment doesn’t involve in equity.
For PBFI, for 1 year performance roughly about 11.13%
If your thinking of investing in PB series funds. You can just go to any Public Bank branches available. There’s no limitation to investing in unit trust. As long as the fund is not closed, it’ll be available for new investment or top-up.
If your free, was wandering if you’ld like to come out for a discussion to know more about unit trust? Probably then, you’ll know more about the differences between the available funds.
hi jun
Actually what UTC’s task is to provide suggestion and solution to help cater to different people’s need. If you as an investor have already done research on the specific fund and satisfy with how the performance is so far, then you should stick to it. Recommendation only serves as a help and it shouldn’t confuse investor to making decision. After all, the money is yours and it’s your investment.
[Reply]
September 21st, 2007 at 2:17 am
Salam & Greetings,
Jun,
Before a decision can be made on which fund you should choose, an analysis should be conducted both by agent and investor. First of all, we should understand the behavior of the funds. An apple to apple comparison should be conducted to see which one is the best suite fund for you either in medium or a long term of investment.
First, let’s take a look into similarities of these funds. They both have same risk profile which is moderate and similar asset allocation about 80% in equity, and the rest in debt securities and money market. In term of stock strategy and distribution, unlike other Islamic equity funds, both are focusing on dividend and annual income. So, we should understand that fund manager will invest more on stocks which have potential to give attractive dividend yield such as TNB, IOI Property, Sime Darby etc.
Now let’s have a look into the differences.
Fund: PIDF, PIADF
Type: Equity Local, Equity Regional
Launch Date: Feb-06, Apr-07
Finance Year End: 30-Apr, 31-May
Approved Size (unit Mil): 3000, 5000
Current Size (unit Mil): 1730, 4482
NAV (RM Mil): 579, 1137
MER: 1.59, n/a
Mgmt Fee/ Annum: 1.50, 1.55
Years in Action: 1.6, 0.5
Asset Malaysia: 100%, 40%
Asset Asia: 0%, 60%
In term of performances, it will be unfair if you just look into past data as PIADF is just recently launched. The best is to look at current performance.
Let’s reveal the true colors of these 2 funds because people love to see what they can do rather than their behaviors.
Period of study: 24/07/2007(last market crash) till 19/09/2007.
Last market crash has shown PIDF lost it’s NAV by -15%, and same goes to PIADF. But when market recovered until today, PIDF only improve +8% of it NAV, almost similar to conservative risk profile fund PIBF (Public Islamic Balance Fund). PIADF on the other hand has shown tremendeous loss recovery by +15%, and that similar to an aggressive fund PIAF (Public Islamic Asia Ittikal Fund).
If you are really a smart investor which one should you choose? But sad to say, PIADF can only be invested with CASH, not EPF withdrawal.
This is only a small elaboration of these 2 funds. If you need further analysis of all funds especially Islamic Funds just drop me an email. You are about to join UT. Play smart, avoid the pitfall and make sure you become the champion. Wasalam.
[Reply]
September 21st, 2007 at 2:36 am
Correction; PIBF is a “conservative to moderate” or “balanced” risk profile, not “conservative”. Sorry for the typo error. TQ
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September 21st, 2007 at 9:19 am
thanks guys! your info help me to understand on both of the fund (PIADF & PIDF).This is my first investment in UT, maybe the best way I should diversify my investment.
[Reply]
September 21st, 2007 at 10:30 am
hope to get more tips from zuraini..thanks a lot..
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September 27th, 2007 at 11:15 pm
Sometimes it’s difficult to compare between funds. Take for example what’s stated PIDF and PIADF. Both funds have similarity as it aims to provide income thru dividend yields but bear in mind the exposure of the funds; one in domestic and one in regional.
The reason why there’s different type of funds offered for investor to choose from is to give more option whether they’re willing to take the risk exposure or prefer domestic. Sometimes certain crisis might not affect the domestic market but will significantly affect the regional market; vice-versa…
[Reply]
September 28th, 2007 at 3:50 pm
Salam & Greeting,
This is where analysis should take place. Choosing which fund to enter is easy if the agent is equipped with right tools, and clients know their appetites. Critical data such as fund size, current NAV, fund manager strategy, global market scenario, timing and so on are some great tools to be considered in making decision on choosing the right portfolio.
Please bear in your mind, avoid the pitfall. You don’t need to keep your investment in the same pool if it’s not up to your expectation after certain period of time. There is a way to better manage your portfolio.
Believe me, if you put all PM fund performances side by side with benchmarks, you will see there are not much different in term of behavior of price % movement up and down of the fund. Focus on your interest. Then you will know which one will shoot up or fall down at sharp rate.
Discover the true power of investment in Public Mutual. Know the right person to deal with. And of course the ultimate decision is rely 100% on investor.
Just for our information, all fund prices are now at bullish position. If you had invested RM1000.00 JUST 1.5 month ago, how much would you be left now? And this has already minus your service charge. And always remember, when there is up, sure will have down. Know how to handle situation. Take care!
1 PCSF $1,216
2 PFEDF $1,134
3 PIADF $1,126
4 PFES $1,112
5 PAIF $1,111
6 PRSEC $1,094
7 PIEF $1,084
8 PAGF $1,082
9 PIF $1,082
10 PITTIKAL $1,077
11 PFSF $1,072
12 PEF $1,072
13 PGF $1,062
14 PSF $1,057
15 PDSF $1,055
16 PIX $1,052
17 PIDF $1,057
18 PIOF $1,040
19 PRSF $1,040
20 PFEBF $1,039
21 PGSF $1,034
22 PBF $1,026
23 PIBF $1,031
24 PFEPRF $1,003
[Reply]
October 4th, 2007 at 2:00 am
Stock Market Information…
I couldn’t understand some parts of this article, but it sounds interesting…
October 12th, 2007 at 11:35 am
Hi Irwan, Allow me to catch up with you once again…:)
After saving for 1 year, i now have some money to start invest into UT. and i am aiming at a new Fund intro by Public Mutual..(Public South East Asia Selected Fund)…However, before i start the game, i would like to understand further how the profit from the investment is projected. My question :-
1. i will only earn my profit from my investment after i sell out my stock after a period or investment. its that right???
2. Can you tell me something about Investment Link?
Thanks
[Reply]
October 17th, 2007 at 3:08 pm
Hi Peter.L,
1. to me, a ‘profit’ can only be considered a real profit after: a) you’ve repurchased your units & got the cold hard cash which you can spend or do anything you want with it; b) you switch the extra units earned to another fund (usually bond, which is more secure) to ‘lock in’ the profit you’ve made, then you’ll have two funds with more combined value than the initial investment. Otherwise, the ‘profit’ only appears as a figure on paper/computer screen, you may say ‘I’ve made a profit of RM1000 in three months’ but in the next three months, this RM1000 may vanish due to volatility of the market/unit prices.
2. Investment-linked funds are unit trust funds managed by an insurance company, and there’re some pros & cons to it when compared with funds managed by unit trust companies. Check out for more insight at a website I stumbled across, http://www.meshio.com/index.php/2006/05/investment-linked-insurance-policy-an-overview/
[Reply]
October 18th, 2007 at 11:46 pm
hi everyone!
i have to say this blog is fantastic!. for a new investor, its perfect place to learn. however some of the comments are too high five stuff for a new investors to learn. the first column by irwan is the most basic and every new investor must read it 1st before going to have a basic idea abt unit trust.
glad to see everyone talking abt investing in public mutual. it is by far the no 1 unit trust company in malaysia. people have the comfort to invest in public mutual because they are the leader in CONSISTENT RETURN and PRESERVATION(the ability of the fund to preserve investor’s capital) as well as TOTAL RETURN.
hi Peter.L,
you are right for the 1st question. until u repurchase all your units available, you are not making actual profit. before you repurchase, it is only paper profit. investors who have gained hansome profit for example 50%, without proper monitoring and advice could end up getting less return when the market fumbles. so having a knowledgeble and ethical consultant is very important.
for your second question, you are lucky that i just learned abt investment link a few days ago and it is still fresh in my memory box. more importantly, it gives me more reason to believe that for investment purposes, unit trust is a better option. if you allready have insurance coverage you should avoid investment link.
for those who want to get ‘2 products at the same shop’, investment link is perfect for them.
as the name suggest investment link products give both insurance coverage and investment facilities. you can either do:
1) single Premium (lump sump)
2) regular premium( monthly, quarterly, half yearly or yearly)
example: you give an annual investment of rm1200 for the first year premium and the chosen sum assured is rm50,000. (same as regular premium of rm100 x 12)
*note that the minimum premium for monthly is rm100
this rm1200 will be divided into:
1)allocated premium
2)unallocated premium
allocated premium is for your coverage and investment
unallocated premium is for company’s expenses (marketing & set up expenses, administration fees, agent’s commision etc)
so unallocated premium is basically the charges you have to pay the insurance company you are dealing with.
you will be paying this charges from the 1st year until the 6th year.
so the weightages between allocated premium and unallocated premium varies from the 1st until the 6th year and different insurance company give different weightages.
the most common one are as follows:
allocated premium unallocated premium
year 1: 40% 60%
year 2: 50% 50%
year 3: 60% 40%
year 4: 70% 30%
year 5: 80% 20%
year 6: 90% 10%
year 7: 100% -
so if you wish to invest your money,in investment link you will only invest 100% of your premium after the 6th year. and it is actually not 100% coz you will be paying for your coverage as well.
if you opt for more coverage, your investment portion will be lesser.
the investment part is exactly like unit trust.
for me it is not a good product if you are planning a pure investment portfolio as you will be paying these charges. the first few years charges are very high.
if you want to know more, pls email me at mohammadshazli7@yahoo.com
hope you are more clear abt investment link products now.
cheers!
[Reply]
October 25th, 2007 at 1:42 pm
I am new to unit trust and trying to understand it.
********************************************************************
I would take Irwan’s Example of calculation:
A year ago, I bought RM10000 Ittikal Unit trust with selling price RM 0.7500 per unit. So total unit that I get was 10000 / 0.75 = 13333.33 unit
Yesterday, the NAV/buy price has became RM 0.8004. I decided to sell all my unit trust. So the total money that I get from the selling is 13333.33 x 0.8004 = RM 10672
Basically, I earned RM672 from this investment.
********************************************************************
Based on the example : You spent RM10000 (with RM0.7500 per unit)and purchase 13333.33 unit, but i believed that the RM10000 is excluding the service charge right ? Assumed the service charge is 6.5% , so means service charge is(0.75×0.065×13333.33) = RM650
So the amount that you spent on the purchase is RM10650 (RM10000 RM650), do I get it right ?
And when you sold off, you selling at RM10672, so compared to the amount you have spent RM10650, you earning is only RM22
(this exclude other charges, as i didn’t know what is the other charges incurred), is my understanding correct ?
[Reply]
October 25th, 2007 at 3:37 pm
hi jaclyn,
always happy to hear people venturing into unit trust because i think everyone should.
your calculation is incorrect because you have not included the distribution and unit split the fund gives. every year public ittikal will declare distribution/dividend ( meaning you will get free units) while unit splits (more free units) will be given every now and then. if you invested last year you won’t be getting any unit splits but you certainly have gained free units through that yearly distribution/dividend.
the selling price allready include the service charge so you don’t need to minus 6.5% anymore. but now all unit trust company practice single pricing. so there is no more selling price, only buying price.(NAV). the profit in that example is much more than rm22.
hope you are more clear now.
do email me at mohammadshazli7@yahoo.com if you have more question.
[Reply]
October 25th, 2007 at 3:48 pm
correction:
you don’t need to add the service charge on top of that rm10,000 bacause 13333.33 units is the units you bought after including the service charge.
[Reply]
October 27th, 2007 at 12:44 pm
Thanks a lot for your reply, shazli
[Reply]
October 28th, 2007 at 2:09 am
Hi Irwan, Shazli and others,
About the distribution/dividend and unit splits,
I need some comments and confirmation on my understanding of the distribution/ dividend on our investment in Mutual Fund
1. Distributions are in RM and later reinvested to our investment @ Reinvestment Price and converted to our units.
2. The reinvestment done automatically for both epf scheme and cash investment OR do we have an option to recv the distributions in cash/cheque for our cash investment
3. The distributions made annually (only once a year) or it depends to the fund.
4. Does it take one year for our investment/units in order to be eligible to receive the distributions OR all units are eligible to the distribution if the units are already there when the distribution takes place.
5. Do we know the future date of any distribution or we can roughly estimate the date? maybe within a month after the year end of the respective fund
6. How about spilt units - when do we recv them, any specific period OR it is the based on the prerogative/discreation of the fund manager/ PM
7. What are other types of distributions that currently enjoyed by the the Unitholders and how it work
Appreciate comments from anybody, kindly share your view
—nizam
[Reply]
October 29th, 2007 at 10:37 am
you’re welcome jaclyn.
hi nizam,
ill answer your question according to the numbers u have listed above:
1) yes, you are right.
2) the option is written in the investment form. you can either receive dividends or reinvest it. if you wish to receive, tick at the pay out box. if the box is not ticked, it will automatically reinvest.
3)every fund has a distribution method. if the method is annual income, it will give distributions annually. if it says incidental, then distributions is given on the fund manager’s view of the current market condition. if fund manager feels there are buying oppurtunities (undervalued stocks), he will invest the money instead of giving dividends/distribution. it depends on what is the best interest of the fund. usually dividend funds give annual income and growth fund give incidental distribution.
4)distribution takes place at the financial year end of the fund. it doesn’t matter when you invest, when the fund reach the financial year end, it will declare dividend. however, bear it mind that IT MAKES NO DIFFERENCE IF YOU INVEST BEFORE OR AFTER THE DIVIDEND PAY OUT. this is because after a fund gives dividend, the price/nav of the fund will go down. so you are getting more units when buying at lower price, while you also get more units through dividend if you invest before the dividend pay out. some consultants like to sell funds that is going to declare dividend soon. pls avoid falling into their tricks.
5) fund’s that give annual income declare distributions at financial year end of the fund. so yes we can know when it is giving dividends. the same cannot be said for funds that give incidental distribution.
those who invest over long term are the ones who will get the most dividends (free units). in addition long term investors will also receive unit splits (more free units).
again, bear in mind it makes NO DIFFERENCE investing before or after dividends pay out.
6) unit splits is given based on the discreation of the fund manager. usually it is given after a few years to make the price affordable for new investors. u will increase your chances of earning the unit splits if you invest over long term. we do not know when a fund is going to give unit splits.
7) basically there are 2 types of distribution, annual and incidental. refer to point 3.
hope you have a better understanding now.
[Reply]
October 29th, 2007 at 10:07 pm
Dear Shazli
Wow! I have better understanding now… thanks for your detail explanations.
Just to recap your answer 2 above, you are actually explained the Distribution Instruction in Investment Application Form for Cash Investment right? and there is no such instruction in the EPF Scheme…
Can I conclude that no option given on the distribution for EPF scheme but to be automatically reinvested to our investment?
A lot more to learn…
Lucky we have a lot of sifu here
[Reply]
October 29th, 2007 at 10:18 pm
yes, you are right. you can’t cash the profit anyway because it will go straight into your epf fund. so yes, it will be automatically reinvested.
always glad to help. add me if you have ym (mohammadshazli7@yahoo.com) or msn (mohammadshazli7@hotmail.com)
im always online night time.
[Reply]
October 31st, 2007 at 2:38 pm
Hello Irwan,
I am 52 yrs Old and I just came in touch with a Public Mutual Fund agent.So I am thinking of investing in PM. I like to know which type of fund is suitable for me. The risk factors involved. My knowledge on unit trust/bonds is nil. I am thinking of investing through monthly deduction of around RM200.00. What is your advice.
Thank you
[Reply]
October 31st, 2007 at 10:03 pm
hi arokiam,
usually for a 52 year old, we suggest a conservative to moderate risk type of fund like bonds and balanced fund. however it depend on how long you wish to do the regular savings. if its more than 10 years..then an aggresive fund also suits you well as it give a good average return over the long term.
do give me your email, and i’ll give you a few examples on regular savings method.
[Reply]
November 14th, 2007 at 2:47 pm
Salam & good luck 4 u all.
FYI.. in Great Eastern Life Investment link fund
allocated premium unallocated premium is;-
year 1 & 2 : 55% 45%
year 3 & 4 : 80% 20%
year 5 & 6 : 90% 10%
year 7 & ..: 105% - %
[Reply]
November 20th, 2007 at 11:09 am
Salam all,
tq all…i’m a newbie in investing….great discussions n wonderful infos on UT…i’ve been approached by UT agent many times but just cud not find the time to look into the matter due to work obligations…however, a recent interest by an old friend of mine in UT prompted me to hv a read and now i understand a bit more abt UT, thanks guys… Maybe i’ll gv it a thot now…take care all…
[Reply]
November 20th, 2007 at 2:23 pm
Hello friends,
Thank you for the information. It’s a great help.
My e-mail address is ariako2001@yahoo.com
[Reply]
November 20th, 2007 at 4:43 pm
Dear Shazli
Macamana nak tahu certain funds tu dividend atau growth?
(Your reply utk Nizam refer to point 3 -29/10/2007)
Terima Kasih.
[Reply]
November 20th, 2007 at 5:31 pm
hi roy,
based on the name of the fund you can know. example public islamic dividend fund gives distribution through dividend. and public growth fund gives distribution through growth. but some funds the name is a bit unique like sbb dana al-ihsan. so these funds you need to refer to the prospectus or fund facts sheet in the website. the prospectus will tell you what are the method of distribution. you can also request a copy from your unit trust consultant.
[Reply]
December 3rd, 2007 at 4:16 pm
Thanks to Irwan and his site that I’ve decided not to take up ASB loan. I don’t use that much from my salary. So I believe I can save up to RM1,000 per month.. [Just starting with my first job (fresh graduate)]. Aside from saving in ASB. with the monthly saving, I’ll put it all directly into my asb account lah.. =) Do you know of any other types of investment that I could invest in long term and also short term?
[Reply]
December 3rd, 2007 at 4:37 pm
hi fazrina,
may i know your email add? i wanna share with you a long term investment result in public mutual. based on past performance of public ittikal fund which is one of Public Mutual’s fund, average 5 year return is 18% which is doubled ASB’s average 5 year return of 9%. if your journey of investment is long, with the right strategy, you can achieve better return in unit trust.
btw..i want to praise you for investing very early in your career. not many people have the saving habit like you. you definitely have a bright financial future!
[Reply]
December 3rd, 2007 at 7:19 pm
Hi Shazli,
Thanks for the help! =) My email add is fazrina0226@gmail.com
[Reply]
December 5th, 2007 at 12:10 pm
wow, i have read all you replies… made me financially intelligent in 30 min…. thanx…
[Reply]
December 10th, 2007 at 10:23 am
Hi Mr Shazli,
Are u PM consultant?
thank you
[Reply]
December 10th, 2007 at 11:34 am
apa perbezaan growth fund dengan dividen fund. growth fund tak bagi dividen ker? mana yang baik untuk jangka masa pendek dan jangka masa panjang atau hit and run?
[Reply]
December 12th, 2007 at 7:23 pm
Thank you,
this was exactly I was looking for
[Reply]
December 15th, 2007 at 10:50 am
Question to Shazli,
I just found this blog and have gain a little insight into unit trusts esp PM..Still in the dark though. I am interested in this UT investment but am not really sure which to invest in? You mentioned about Ittikal average 5 year return is 18%. Does it means that if I save Rm10,000 for 10 years, my investment will grow to roughly RM 28,000?
Thanks
[Reply]
December 29th, 2007 at 4:19 pm
Hola,
This website is indeed very helpful.
I’m new to UT and was approached by a PM consultant recently.From the way it seems,the hottest fund to invest into would be PCSF and PCIF.So to you learned consultants/investors,please advise on the following queries:-
a) which one of these would be recommended to invest into PCSF or PCIF (of cos there’s no absolute guarantee in returns,that’s well understood
but my opinion is this,investing in non-halal companies eg.tobacco, alcohol etc…my due respect to all those who do not embrace these stuffs…would perhaps bring in more returns as its investment scope is larger?
b) from previous discussions above on the subject of reaching your investment goals and then ‘locking in’ the profits made from equity funds to bonds/market money funds. It sounds pretty simple but how do the mechanics work:-
i) do I need to buy a bond-based fund just to transfer the profits made into it? OR
ii) just simply switch the profits made from the equity fund into a self-selected bond-based fund by just paying RM25?
iii) When i’ve got my profits ‘locked in’ into a bond fund,the same profits would remain unchanged?
iv) and when i want to withdraw the profits earned,is there a maturity period to be achieved before i could withdraw?
It’s a little long i know…sorry bout that but if anyone could give some insight into this questions,it’s greatly appreciated
Thanks.
Bern
[Reply]
January 14th, 2008 at 2:50 pm
[...] Kat sini info pasal unit trust investment. [...]
January 26th, 2008 at 4:56 am
[...] Source: Chicago Crescent Beginner’s guide: Understanding Mutual Fund at Irwan’s [...]
January 30th, 2008 at 5:55 pm
Hi Everybody,
market is moving downward at the moment.
UT agent has been harping that the best way to protect your investment is to do switching. I tend not to believe them until I see the actual calculation (real-life). Anybody out there can simulate how the calculation is being calculated pls post it for the benefit of everybody. FYI, I am having some money in PM Unit trust
tqvm
[Reply]
February 10th, 2008 at 1:15 am
Dear Zu.. Before doing switching ask your consultant on the fees imposed. For the time as far i am concern only Alliance Investment Management do free switching.
Basically good consultant will react base on her/his fund manager advice. because they are our key person..of investment. If the fund manager forecast the market will going down. its probably true because of sub prime issue are heating us. but if you are investing in syariah base fund, the effect was less because normally the sub prime crisis effect most at convensional fund. .Why ? Syariah index always react most on gold and Convensional react on paper value. Bare in mind we appereciate dollar because of the gold they hold.
*Buy more unit when market are down
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February 12th, 2008 at 5:30 pm
hello semua..
bila citer pasal skim amanah,semua rasa company masing2 bagus.tp cuba tanya sendiri,kalau jd apa2 pada pelabur;sekiranya meninggal dunia,ke mana pergi nya semua pelaburan itu.Sudah tentu akan terletak ke Amanah Raya.Tahukah anda,jika hendak waris hendak menuntut wang tersebut,berapa lama perlu diambil untuk menuntut wang tersebut??MINIMUM 3-4 tahun??
Penah dengar org turun naik pejabat insuran untuk claim insuran??Betapa payah nya hendak mendapat wang tersebut.Mcm minta sedekah di buat nya.padahal duit tu mmg hak kita.
HENDAK KAH ANDA MENYUSAH KAN PEWARIS ANDA eg:MAK,BAPAK,ANAK2,ISTERI TURUN NAIK PEJABAT SEMATA@ NAK DAPAT KAN WANG TERSEBUT??
confirm 3-4 tahun anak2 si mati tak makan..
tepuk dada,tanya la agent.
tq
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February 22nd, 2008 at 9:55 pm
To syaitan ajaib and all. about pelabur yang meninggal dunia. CIMB offer trust nomination. I am investing in CIMB funds and they offer trust nomination… i.e penama in case i no longer in this world. the trust nomination is only RM50.00 for investment less than RM20,000.00. it will tke only a month forthe full investment to be transferred to my mother’s account, kalau i ah takda. not thru amanah raya. amanah raya will take a long time to get back the investment and byk charges kena tolak tolak from the investment amount.
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February 27th, 2008 at 9:44 pm
kepada syaitan ajaib….
Masih adda lagi rupanye melayu layu di malaysia nie.
Open your mind.dahlah insurans tade….pelaburan pun tade…sure anak-beranak mati tak makan kalau kau mati.just imagine you meet accident…x mati but lumpuh sepanjang hayat….aku rasa bini kau pun minta cerai.yalah dah lah tak boleh bekerja…kena pulak jaga kau yg lumpuh tu.Maaf kalau terlampau keras kata2 ini.
Segala-galanya terletak pada kemahuan kita.pasal pelaburan kemana lepas kita mati…..tu pentingnya kita buat wasiat…faham…ada banyak tempat yg kita boleh …cas pun murah….kat amanah raya pun boleh…faham….
kalau takde wasiat pun….duit tu masih utk waris kita….yg penting ye..kita perlu tahu cara yg betul utk dapatkan….faham…ini tidak bila amanah raya suruh sediakan itu..ini…bolehlah merunggut tak ade masa..lah..susah..lah…mcm-mcm alasan.
Pasal insurans….yelah kalau kau beli dgn syarikat cap ayam…off causelah…kena naik turun tangga ..nak dpt claim kau….yg penting kita kena tahu apa document yg perlu bila buat claim…kalau terus pegi sehelai sepinggan -lepas tu minta duit kat syarikat insuran-sapa nak bagi…ada procuder yg perlu diikut.
Dan yg paling penting..beli insuran dgn syarikat yg bagus…
Aku buat claim uth arwah ayah mertua aku…sekali pergi aje..3 minggu dpt cek…apa yg susahnya.
pening aku tengok org mcm kau nie….
[Reply]
March 7th, 2008 at 9:36 pm
to affandy…
very2 good comment.But can u explain futher…bcoz my research during currency crisis show different.syariah index also received some impact as convertional.
my reseach show that syariah index down almost -60% on dec 1997….it not much different comfare to KLCI index.
Hope u can explain futher…your respond are highly appreciated.
tq..
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March 13th, 2008 at 9:34 am
hello all,
I’m a new guy in investment field.I just wonder what is the best fund,bond or any trust fund that available in our country.I’m looking for a medium risk and long term period.
Thank you.
[Reply]
March 24th, 2008 at 6:11 pm
Hello Irwan and everyone!
This must be the discovery of the century, getting wise people to explain investment topics in a humane (simple, precise and understandable) way. I’ve just started working for 6 months and I want to invest, but I don’t know what is the best choice. I know there are a lot of products out there, but the rest is beyond me. It’s nice to have this site to throw some light though.
I’ve been reading some books regarding financial freedom etc, and they all keep stressing that you have to get involved with real estate to make money. Any tips on this?
Merci beaucoup Irwan!
You did a great job
=)
[Reply]
March 27th, 2008 at 6:06 am
Killerkoffee..
To invest in Real estate need some back up money if you want to invest.. but you must have spending power (that is Money)to sustain your property just in case no 1 renting your house or apartment. there is so many step to be rich. insurance is one of the main point if you are looking into getting rich. but first thing’s first is you must make your money work hard for you, not you work hard for money. Good Luck. if you need any help or sugesstion can contact me at:-
shahril.riza.mokhtar@gmail.com
mobile: 012-6700900
LVG Unit Trust Consutlant
[Reply]
March 29th, 2008 at 10:30 pm
To SYAITAN AJAIB & melayu layu yang lain..
aku sokong investors..
ni la melayu, time orang nak kempen & bagi tahu, tak nak dengar.
bila dah kena, mulalah menggelabah salah itu ini.
aku sure kau tak pernah berurusan dgn pejabat tanah. lagi teruk kalau tak tahu & tak nak ambil tahu awal-awal.
Hello. matinye engkau.. habis segala aset kau dibekukan ke amanah raya. melainkan polisi insurans. kalau KWSP kau tak buat penama @ tidak update, menyumpahlah anak bini kepada kau di kubur nanti…
insurans, directly aku cakap… company cap ayam je yang bermasalah.
Takaful malaysia.
kalau mudah je daftar polisi insurans/takaful. nantilah kau bila nak claim nanti. payah nak mampus. silap2, tak dapat lansung!!
tapi kalau banyak soal @ kena buat medical report untuk daftar, mudah je time claim.
Y..? tu tanye ajen aa. Ni tak, ajen datang, lari. padahal kau tu syaitan. bukan kena bayar pun kasi ejen tu cakap & tanye dia mcm2.
ciss. long story lak..
k. ranking syarikat life insurans kat m’sia..secara umum bagi all policy :-
1. great eastern life
2. AIA
3. predential
4. ING
…
takaful? malas aku nak komen..kang marah lak ejen dia.
macamni lah. kalau kau kaki boikot semua supermarket, product syarikat non-muslim & beli kat kedai melayu saja. boleh aa kau ambil takaful.
[Reply]
March 30th, 2008 at 2:54 am
zu..,
Swicthing it depend on what price you bought and what are the current price? If the price have slum down huge fall then i suggest you dont do swicthing coz i will do you damage. Some UT agent are not knowledgeable in this, coz they just follow thier upline who is not that experience in dealing with this..(dont follow like Buffalo).
Please remember that UT investment are a journey 3-5 years. Discpline on regular saving, that is Dollar Cost Averaging and dont be emotional when market down. remember what goes down must come up. and also you must also have faith in your investment. I hope this will help you decide. if you need any assitance contact me.
Thanks
Shah
LVG Unit Trust Consultant
shahril.riza.mokhtar@gmail.com
[Reply]
March 31st, 2008 at 4:23 pm
eloo guys, come on. dun be so hard on ’syaitan ajaib’. well the name says it all
he’s just an angry man, maybe had encountered wif bad experiences. Anyway, i can say one thing. Insurances, unit trusts, stocks n bonds.. n whatever it is- it’s all products! whenever u want to buy a product, u have to consider things like money u have, how good the product is (how do u know? by ur own experience or mouth-to-mouth stories), how long the product is expected to remain good, how helpful the product is,or do u reli need it? Stuffs like that.
We all want to have ‘money freedom’, retire young & rich. But don’t just do it because u heard that people do it successfully. Learn slowly, even it takes u a year to start a commitment into any kind of funds. Think Irwan’s page is so helpful, so i myself also spend some times to read up, n even attending financial seminars. All kind of investments are about the risks. So, be ready for risks, n be happy for the returns.
Anyway,I do not blame any agents, but i have to say that some agents (esp insurance) just want us to sign the documents.Suka sgt paksa,paksa n paksa! and then marah bile u tak nak!OMG, i can’t stand this kind of ppl, even frens pun bleh jd enemies. (Im so sori kalau ada agents yg bc nih.. i think sure ada la. Perhaps u r not one of those sicks agents, but do not blame ppl yg lari bile agent datang- believe me diorg mesti pernah ada bad experience!) Come on, give us time, wif great explanations and great stuffs offered to us, we’ll come back to u if it meant to be! Biasalah tu, adat promote brg- u tak leh marah kan?
Frens, Muslims especially: Jgn lupa pelaburan akhirat..rezeki takkan terputus kalau kita tak lupakan org2 yg susah n tk lupe satu hari kite akan mati!
You have someone utk dicontohi so far: Tan Sri Syed Al-Bukhari.
[Reply]
March 31st, 2008 at 6:00 pm
Salam and Hai! everybody, I’m new to investing but after reading all the comments. I’m more confused, i am still blur, what is Unit Trust, though technically i’ve read about it, but help! Still not sure.
Thank a million.
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April 1st, 2008 at 12:46 pm
hi meera from swami utc public mutual
would appreciate if u could call me at this 016-3712929 for further explaination on how ut works
thank you and hoping 2 hear from u
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April 1st, 2008 at 2:10 pm
Meera,
I cant explain in details coz it would take the whole page. What i can do is probably fix up an appointment with you and explain further more. Just drop me a email and i get back to you.
Thanks
Shahril Riza Mokhtar
Unit Trust Agent Supervisor
LVG Group (Damansara Perdana)
shahril.riza.mokhtar@gmail.com
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April 8th, 2008 at 12:00 pm
Hello everyone. Iam totally new to Unit Trust. What is the best fund to invest now?
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April 8th, 2008 at 12:08 pm
Dear Anna Tan,
There so many subject to discuss with. If you have time maybe I can share some knowledge with you.My number 0193373380.
Thanks
Shahril Riza Mokhtar
Unit Trust Agent Supervisor
LVG Group (Damansara Perdana)
shahril.riza.mokhtar@gmail.com
[Reply]
April 8th, 2008 at 1:45 pm
Dear Anna Tan,
Where are located? Maybe you can just chat on the net or call.
Thanks
Shahril Riza Mokhtar
Unit Trust Agent Supervisor
LVG Group Damansara Perdana.
shahril.riza.mokhtar@gmail.com
[Reply]
April 8th, 2008 at 2:14 pm
dear anna tan from swami public mutual
i am a unit trust consultant with public mutual fulltime formely with cimb .would greatly appreciate and ever willing 2 help if u require
my services my phone no is 016-3712929
thank you
swami aka sam
[Reply]
April 8th, 2008 at 6:01 pm
Hello,Iam from Sarawak.Far away from KL.
[Reply]
abdullahbs reply on April 16, 2008:
Hi Anna from Sarawak,
I am a Public Mutual Unit Trust Consultant in Kuching. If you are looking for a consultant in Kuching you can contact me at 019-8278489 or email me at abdullahbs@yahoo.com.
[Reply]
April 11th, 2008 at 4:52 pm
If I were to invest for a period of 3 years which one should I choose, P Ittikal or ASB?
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April 11th, 2008 at 6:51 pm
hello anna from swami aka sam i have clients in kuching so no prob contact me at by e mail
sanniswaran@hotmail.com tq
[Reply]
April 12th, 2008 at 4:58 pm
Zul,
It’s better if we meet and i can advise you on what to do… just call me 0193373380 or feel free to email me shahril.riza.mokhtar@gmail.com.
Thanks
Shahril Riza Mokhtar
Unit Trust Agent Supervisor
LVG Group PM Damansara Perdana
[Reply]
April 13th, 2008 at 8:36 pm
irwan….i want to talk to you. about finance matter. hope u can help me out. to understand more..
[Reply]
April 13th, 2008 at 9:33 pm
Olivia »
you got my email
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April 15th, 2008 at 9:19 pm
Hi Irwan,
Would like to ask you if there is an official web site to see real time unit trust price?
I have check most of the website like publicmutual and thestar provide 1 day late pricing list.
Hope to hear from you soon, please reply to my email. Thanks in advance.
[Reply]
Irwan reply on April 15, 2008:
dear khai, unit trust NAV is calculated at the end of the day. thus the price would always be late 1 day.
Mutual funds don’t have real time price like stock.
however, if you need such information, you can view the prospective and find the largest equity that the fund holds. then you can get estimated value for that fund.
If you eager to know real time price, i think you should look into real stock instead of mutual fund coz stock give you more control and higher return/risk.
[Reply]
April 17th, 2008 at 2:14 pm
Candlestick Chart Investing Stock…
Life is full of misery, loneliness, and suffering - and it’s all over much too soon. Woody Allen….
April 23rd, 2008 at 4:14 pm
I would like to know the Public Index Fund performance. I am investing rm1000 using my EPF money.
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April 23rd, 2008 at 5:18 pm
steve perhaps u can call me at016-3712929 for further clarification
swami public mutual
full time unit trust consultant
[Reply]
April 28th, 2008 at 7:10 pm
Bro irwan…
can u give me your opinion about my investment:
1)Public Asia IttikalFund =RM 3000 (a year ago)
2)CIMB MENA Equity Principal Fund = RM 1500 (march this year)
3)Amanah Saham Bumiputera = RM 2000(march this year)
so do u think i should open a new fund acc or invest in 1 of those 3 fund???coz im intent to invest RM 1500 more…thanx
[Reply]
Irwan reply on April 29, 2008:
In my opinion you already have a balanced portfolio. ASB for non-risk, and PAIF and Cimb’s for high risk fund.
In which you should invest depends on how you view your risk/performance ratio now.
If you think the market is too volatile, invest more in less ris