Currently i am doing thesis on Evaluating performance of Equity unit trust funds using KLCI as benchmark form year 2000 – 2010. i need the monthly or yearly return of the selected unit trust funds..i could not find the details anywhere..and i am also confused why the annual return of the fund in master prospect is different from the morningstar website.

i really hope u can help me..
my email add : dev_j1@hotmail.com
10q

if you think market is peak/hot, invest less (get less units too).(i.e. if you have a budget RM500 per month, may be just put in RM200 and keep RM300 for future)

if you think market is low/value-buy, invest more (and get more units)

I totally agree with you! Investors must be careful in selecting their agents and equip themselves with necessary financial knowledge. Agents should refrain from making any misrepresentation on financial products and the capability of the firm that would tarnish the financial industry. That is why my website is created to provide the necessary information to general investors and public.

Nowadays, too many UT or insurance agents searching / looking for new business and clients. Glad that they able earn some income for own/family in today survival life.

However, does these UT agents financial are really qualified and knowledgeable to advice client to make good judgement & decision especially when come to investment? Same similiarity that I seen many Financial Advisors ( insurance , Unit Trusts ..etc). With a min SPM, they took some insurance exams(A /General insurance,C / Life Insurance + Investment-Linked) and attend few hours credit of training, and then, they are able to meet prospect clients with word ” Guarantee 4-5% yield dividen ..etc) promise with nice laptop/notebook with good MS PowerPoint Slides.

Essential Knowledge require before for putting your money into a Investment :-
Macroeconomies,Microeconomies, Interest Rate Movement, Inflation/Deflation, Consumer Price Index, Manufacturing Sentiment Output, Global / Local Stock Market, Commodities Movement(Gold/Crude Oil/Silver ..etc), Bond Rates, Bond/Treasury/Country Credit Rating by Moody/Standard&Poors, Fitch ..etc, GDP, GNP http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal) , ..etc

No offense.. Just a guildelines.. Thank you.

I too am sorry to hear about your experience in UT investment. What Will said was 100% right about dollar cost averaging. However, the sad fact remained – when market crashed in year 2008, how many investors willing or daring enough to top up their investment? I still remember those days where I have to spend hours and hours just to explain the notion of dollar cost averaging method. Those who are seeing losses back then would never buy into the idea of continue placing their money into UT investment.

I am thankful I have customers who are willing to listen to my advise and today, they are remained as happy investors.

I must admit that the performance of PIADF for the period of 2007-2010 is not very good mainly because of the global economic downturn.

But there are also very good funds such as Public Small Cap, Public Islamic Opportunities Fund and Public Islamic Sector Select Fund.

So we need to closely monitor our investment and do switching to minimize losses and maximize gain or get help from a committed Unit Trust Consultant to help us with our investment.

I am sorry for your experience. I understand what you are feeling. Allow me to ask exactly what were you informed about Unit Trusts when you first invested? It is my experience, that investors who react negatively to such investment conditions are those that were not fully informed of the mechanics and risks of Unit Trust investment.

There are three types of investors when facing market down situations.
1) They Sell. Your data shows that within 9 months of you investing, the price of that fund has come down from 25.87 cents to 16.67 cents. If you HAD sold your units then, your loss would have been even GREATER at RM15,126.
2) They Wait. Bernard, you belong in this category. Congratulations, you managed to cut your losses by almost 50%. But of course at an opportunity cost. However, if you waited the recommended 3-5 years then perhaps you wouldn’t have any losses to begin with. Again, that would come at an opportunity cost.
3) They Buy. These are most savvy of investors. Of course you would need to have the resources to buy when market down. Which brings up the point that you shouldn’t invest in Unit Trusts if that is all your savings. Imagine if you invested RM20K when the price went down, you would have bought at 16.67 cents for a total of 113,377 units. Roughly add that up to you end units making it a sum of 269,205.54 @ 21.21 cents (19.7.10) = RM 57,098.00. So therefore, if only you had bought when the price went down. you would have made a profit of RM17K already.

Will has a point with the Dollar Cost Averaging. But most people don’t understand that Dollar Cost Averaging only reduces the duration you have to wait to make a profit. Lets use Bernard’s portfolio as an example, if he didn’t sell, he would probably need to wait for an additional 3-5 years to make 30% returns (example only) but if he had regularly invested and lowered his overall costs. Then he would only need to wait a very short period to make the same amount of profits. Anyway, feel free to contact me at 016 6686 434 or email me.

Yours Truly,
Hussin Yusof

You invest 40k in Islamic Asia Dividend fund and you lost about 7k or 17% in 3.5years.3.5years from now is year 200 7, it is market peak. 15.10.08 it is in subprime financial crisis

03.01.08 40,000.00 146,558.54 0.2587 37,914.69 (2,085.31)
15.10.08 40,000,00 149,021.88 0.1667 24,873.45 (15,126,55)
04.05.09 40,000.00 150,615.92 0.1810 27,261.48 (12,738.52)
12.02.10 40,000.00 150,615.92 0.2181 32,849.34 (7,150.55)
19.07.10 40,000,00 155,828.22 0.2121 33,051.16 (6,948.84)

You can avoid facing the huge loss if you practice ringgit cost averaging, that is invest a small amount of money into a fund every month, then you will also buy the fund when the fund is cheap eg in 2008 when it is in financial crisis and gain the profit when market recover.

http://www.publicmutual.com.my/application/fund/detail.aspx

For ING funds… you need to login to see your funds performance – but, you can only see your own funds, and not other funds.

For the benefit to other investors… Below are details of one of my Public Mutual Fund performance over 3.5 years.

PUBLIC ISLAMIC ASIA DIVIDEND FUND

Date Capital Units Price Value Profit/Loss

03.01.08 40,000.00 146,558.54 0.2587 37,914.69 (2,085.31)
15.10.08 40,000,00 149,021.88 0.1667 24,873.45 (15,126,55)
04.05.09 40,000.00 150,615.92 0.1810 27,261.48 (12,738.52)
12.02.10 40,000.00 150,615.92 0.2181 32,849.34 (7,150.55)
19.07.10 40,000,00 155,828.22 0.2121 33,051.16 (6,948.84)

Redeemed yesterday (19.07.10)

To me Unit Trusts is nothing but a scam… legalized by our goverment.

And your info: Singapore bans use of ‘capital protected’

Check it out here: http://www.asiaone.com/Business/News/My%2BMoney/Story/A1Story20090909-166674.html

My Last Word here… “Unit Trusts is the reason God created the middle finger”

Ciao… and have a nice day!

What I will get back after 3 years 6 months is about RM87,000.00 “Unit Trusts for Investment – You must be joking.”