Irwan’s

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

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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

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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.

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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.

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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…

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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

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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!

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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.

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Thanks a lot for your reply, shazli

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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.
again, bear in mind it makes NO DIFFERENCE investing before or after dividends pay out. 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).

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.

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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.

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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.

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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…

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Dear Shazli

Macamana nak tahu certain funds tu dividend atau growth?
(Your reply utk Nizam refer to point 3 -29/10/2007)

Terima Kasih.

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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?

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Hi Shazli,

Thanks for the help! =) My email add is fazrina0226@gmail.com

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Hi Mr Shazli,

Are u PM consultant?

thank you

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Thank you,
this was exactly I was looking for

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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

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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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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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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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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
=)

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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.

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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.

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