Comments on: The secret of investing in Unit Trust

By: Will Lim

Will Lim — Fri, 12 Mar 2010 16:13:54 +0000

Eng Hua, switching fee definitely lower than the amount transacted and lower than the service charge. Eg you switch RM10k fund, the switching cost is RM25 but if you sell and buy again you need to pay 5.5% which is RM550.

Mary, you can do that, but the distribution (or dividend you mention) is from the fund NAV. Eg now your NAV is RM10k, after distribute 2k, you fund will be slightly less than RM8k because everything distribution there is company tax involved. So actually not encourage to do that.

By: Fairuz

Fairuz — Sun, 21 Feb 2010 14:43:22 +0000

Hello my good fellow friends,
I think da best way to invest is either through the agent or through the financial adviser. This is because of their routine job to monitor da market daily. But nevertheless, you also need to do some homework such as to find the suitable fund that relates to your fund objectives and especially your time target to harvest your investment cause base on my experiences, most of people want to invest but maybe because of lack of information and experiences they lost their investment. May the market b with u….
*ps: this is just my personal view base only….
currently I’m switching my target this year to invest in real property..huhuhu…. (^_^)

By: Mary Tan

Mary Tan — Tue, 19 Jan 2010 14:34:54 +0000

Mr. KC Lau,
Can I invest a lump sum (RM100K) in one fund ( example : index fund) just to collect dividend in January 2010. When dividend collected then I do switching to Regular Saving Fund, distribution in March 2010. After collected the dividend I do switching again to another fund (eg. P Ittikal fund) I will receive dividend in 31 May 2010.
Again I do switching to Small cap fund …………………………. till to Saving funds distribution in 31 Dec.
Is this a good practise to gain more or not ? please advice.
thank
Mary Tan

By: HJ ZAIMIE

HJ ZAIMIE — Thu, 14 Jan 2010 08:39:21 +0000

alvin,
have u invested in UTrust? well, for further understanding, its better to hv meeting personnaly as this issue tend to get mis interpretations!!

By: Netmask

Netmask — Wed, 23 Dec 2009 04:31:12 +0000

Greetings & G’Day,

Invest directly into stock market will be better returns. Of course, high risk high gain.If you are a long term player( 10 – 12 years cynical), you’ll notice for the past 30 years, stocks market DROP drastically for 2 – 2.5 years(VERY FAST DROP), and took average 7-8 years(STABLE & STEADY uptrend) to slowly moving upward.

1. Buy Dow Jones, Nasdaq or UK stocks will gives better currency exchange returns in long term.
2. Consider buying Brazil STOCK MARKETs NOW!! Why Brazil ?
FIFA 2014 WORLD CUP OLYMPIC 2016 BRAZIL
Bought NYSE, NASDAQ stocks during fallouts of Washington Mutual, Lehman Brothers, trouble of AIG & USA Banking credit crunch, Fannie Mae, Freddie Mac. Put Total Investment = RM60K and NOW VAlue at RM 400K .. Per history chart, it will worth few millions if you got patience to keep and hold stocks for 5 – 8 years from now.Beside that, the quaterly PAYOUT dividend is in Higher Currency Exchange..
Bank Of America(BAC), CitiGroup(C), Las Vegas Sands(LVS), XL Capital(XL), E-Trade(ETFC), MGM Mirage(MGM), General Electric(GE), Alcoa(AA), Beazer Home(BZH) ..

By: alvin

alvin — Mon, 07 Dec 2009 18:35:02 +0000

hi….all unit trust senior,
i plan to invest in unit trust…but i don’t have any idea & i not really understand about 2nd and 3rd points given above.
1. how to do portfolio re-balancing???
2. why we need to do?
3. what is switching & why need need to switch it??
4. when & how to switch??
if all senior got any useful info or hints plz send to me …..thanks !!!

By: Tom Dorsey

Tom Dorsey — Fri, 27 Nov 2009 14:22:31 +0000

KC Re-balancing makes no sense what so ever. Its a buzz word used in the U.S. to avoid law suits. Its part of the Modern Portfolio Management process that is TOTALLY discredited. Re-balancing means selling the good things in the portfolio, those that have strong relative strength and are likely to stay that way for a long time and reinvesting those funds you get from selling the good and buying the bad. What would have happened in the Dot Com bust if you were selling Oil that did well for 7 straight years from 2000 and put the money into Internet Stocks. You killed the portfolio. This is only a buzz word to get people to buy into MPT. It is always best for the investor or adviser to be a craftsman at the investment process and tactically rotate the portfolio when sectors and asset classes actually move out of favor. Kind of like Produce in the market changing seasons. Tom Dorsey

By: Lucy

Lucy — Wed, 04 Nov 2009 03:40:04 +0000

switching has its pro and cons. unless u are sure that u are happy with the returns
and very disciplined to do the switch into bond fund when necessary. u may plan to switch but when your return hits the target of eg 20% ,emotion takes over and u want to wait a little longer to gain more. Then the market dips, and u are at 15%. Fearful that market may go down further u finally switch at below target. The same applies when u want to switch out into equity. Therefore u lose out both ends.
The safer way is to invest with affordable monthly standing instruction and have some cash to top up more when market dips. U will be doing forced saving, dollar cost averaging, growing your wealth and grabbing market opportunities to accumulate more units, all in one and less stressful. But before doing all that u must have at least 8 months emergency fund put aside in bond fund or fixed income

By: KCLau

KCLau — Thu, 06 Aug 2009 04:16:06 +0000

@Gavin,

the total of unit is always recalculated when you switch from fund A to Fund B, depends on the price.

By: Thien Rong

Thien Rong — Sun, 02 Aug 2009 11:02:13 +0000

@gavin, nope. When you must switch, you buy based on that fund price so your accumulated total units changed.

Sometimes looking into balancing/divesification based on asset classes is not enough. You should also have funds invested globally to migrate risks involving a certain country or continent.