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Posted by gnustiy @ Thu 15 May, 08, 05:19PM under Public Mutual
The Malaysian market plunged further in mid March 2008 after my previous call to pump in more capital to invest in the market (unit trust). And this is the time I topped up more than one-third of my initial capital for both PFEDF and PCSF as lauded by all fundamentalist gurus (e.g Warren Buffett, Pat Dorsey...etc) to buy when no one is interested. Ok, I did not top up just to heed their call, but to perform dollar-cost averaging to buy in more units at dirt cheap price. Reason? The funds are near to announce dividend distribution:) So I was pleased when I found out today that my portfolio has twisted its fate from suffering a total of 35% loss to the current 1.74% profit. Power of DC averaging! By the time I received the distribution (which is normally more than 8%), with the growth anticipated, my portfolio would be hitting a healthy 20% in ROI. This also meant that since the downturn in Jan'08 till now, the growth of the funds are approximately 20% - 30%. So if you have chip in then, congratulations to you! Nonetheless, this is just the start, to me the buying signal is still strong, especially in the long run:) Lookout for PRSEC and the others here. At least for me, I will go for PRSEC next. Ok, I am also hunting for reliable agents in Penang, KL and JB. If you are interested, please feel free to drop me a mail at gnustiy@yahoo.com. In the coming entry, I will explicitly talk about how to select a good fund. Stay tune! 
Posted by gnustiy @ Thu 15 May, 08, 04:37PM under Public Mutual
For those who wants to use their EPF to invest in unit trust, this is considered as a good news. Previously, one would need to have more than RM50,000 in Account I to be eligible for this scheme and can invest a minimum of RM1,000 up to 20% of the saving amounts that exceed the RM50,000. Starting from February 1, 2008, the minimum saving of RM50,000 which applies to all has been changed with respect to the table below - each age level would have its own minimum savings limit in their Account 1.
This is a positive change knowing that not many people are able to accumulate RM50,000 at an early stage in their EPF account. With this, the younger generations are able to invest earlier and reap the effect of compounded ROI. Based on the table above, you can use the following formula to calculate how much you can invest your KWSP money into a privately managed fund. For example, a 25 year-old with savings up to RM20,000 in Account I would be able to invest a maximum of: (RM20,000 - RM9,000) x 20% = RM11,000 x 20% = RM2,200 But still, withdrawal can only be done once every 3 months and the minimum withdrawal remains at RM1,000. For more info, please visit the KWSP website.
Posted by gnustiy @ Thu 27 Mar, 08, 09:04PM under Public Mutual
Following my previous post (When It's Time to Sell, Sell), which was before the second global market plunge in January 2008, here I am again after the long hiatus as I was undegoing some transitions for the past few months. This time I am going to convince you to dig out all the cash you have been keeping in the Milo tin container (or biscuit tin, whatever.) and put it to good use - it's time to do some shopping! Despite the negative sentiments, if you have some moolah to spare which you are able to put aside for long term, you can now chip into some funds which are being offered at a reasonably low (discounted) price. Some of my favourites: 1. PDSF: Promising annual dividend.
2. PRSEC: Aggressive return in terms of capital gain, earned 37% from this fund within a year. Give out good dividend as well. Next on my list to top up.
3. PFEDF: Slow and steady in uptrend market. If managed well, I would have attain 30% just by switching fund. Last year's dividend is 8% - 15%. I am still buying in.
4. PCSF: If the bull starts charging, you will not be able to catch this fella. So, chip in now when the price is really low. I am still buying in.
Of course, if you have one lump sum to spare. Do not invest all at once, because you do not know when the market will hit the global minima. Thus you do not know if you will get a cheaper bargain the very next day. So, invest in batches, exercise strategic pricing, wisely. The same thing if you are diving directly into the stock market nowadays. Adios, amigos! ps: For my dear clients, I will help to support the portfolio monitoring spread sheet FOC :)
Posted by gnustiy @ Wed 10 Oct, 07, 10:07PM under Public Mutual
After the recent "Big Dip" in mid August, the regional market has rebounced strongly since then. I am glad to assist some of my friends in achieving a strategic pricing in their unit trust investment by taking advantage of the plunge. As such, within less than 2 months, most (all) of them have gained more than 10% in capital growth. Congratulations! So after you have establish an investment portfolio, now what?
So now, the focus would be on strategic monitoring and managing of the funds to maximise your gains. First, you will need to recalculate the actual NAV of your investment by dividing the Total Amount Paid by the Total Units from the statement of transaction. For example, you invested RM2500.00 in PIADF at NAV = 0.2360. Note that there is a 6.5% service charge incurred. As such, only 93.5% of the RM2500.00 (which is RM2347.42) will be used to purchase the units. In this case, the total unit obtained will be 9946.69 units. To recalculate the actual NAV of your purchase, simply divide RM2500 with 9946.69 and you will get 0.2513. Once you have derived the actual NAV, you will need to set a targeted ROI and if the current NAV hits the target, do not hesitate to exercise profit-taking unless the outlook of the investment climate is positive and promising. The emphasis here is to grab the profit once the target is achieved. It is like exercising the muscle, the more you exercise it, the stronger it will get. Do not be over-zealous and overwhelm by greed, remember that the market is volatile and the uptrend will not sustain forever.
For monitoring and managing purpose, you can prepare a spreadsheet as shown above to record all the necessary information:
Then periodic monitoring is required (daily, weekly, monthly). For me, I have generated a macro to update the NAV daily. If the current NAV hit the targeted NAV to sell, then reap the return. Or, you could retain your asset value by switching to a bond fund and wait for the next dip/cash squeeze. *wink Good luck! Adios.
Posted by gnustiy @ Sun 08 Jul, 07, 03:38PM under Public Mutual
Glad that my investments in unit trust are fruitful. Well, not as volatile as the stock market, but a steady growh of 10% is pretty good for me. PFEDF which I chipped in in Dec'07 (since launch) is showing a promising 11% within 6 months. Oh, and not forgetting my regular savings in PRSEC and PIDF which declared 9% and 8% dividend respectively recently. I think I will keep pumping some cash in Public Mutual. Any better way to keep extra cash and generate steady income? And, I am also thrilled that my clients are satisfied with my services and I am glad that you guys profited from your investments as well. You guys deserve it. Remember the golden rule: Salary - Savings = Expenses. Last but not least, I am excited to announce that I have been promoted as ASP. Thanks for all your support! Sincerely yours, gnustiy ps: New fund launched: Public China Select Fund. High risk but the return is promising.
Posted by gnustiy @ Sun 24 Sep, 06, 10:49PM under Public Mutual
One of Public Mutual Unit Trust's aims is to outperform the KLCI. That is why we always compare the fund performance with the KLCI as a benchmark. Most of the time, we deliver what we promised! But there are times when a new fund was launch and coincided with the bearish market and the price dropped below the launching price (0.25 cents per unit). Many would curse as they suffered a loss, but sweat not, here is a tale to make even or even better, gain from this so called "opportunity".
Take PRSEC for example, launch in March 2006 at 0.25 per unit. Since it is an equity fund (aggressive), therefore we expect some fluctuation in the price since more than 80% of asset is allocated in equities. Unfortunately, it was hit by downfall in May and the price plunged all the way from 0.25 to 0.225 in Jun, a total -10% growth! Disaster? Not exactly.
Imagine this: If you dumped in RM1000 in March at 0.25/unit, you are going to get 4000 units. But if you are able to pump in another RM1000 in June at 0.225/unit, you get to buy more units (4444 units). Your average price becomes RM2000/8444units = 0.2369. Now, note that the price now is 0.2525 per unit, so your total asset value is: 8444 units * 0.2525 = RM2132.11 Your ROI is actually = 1.32% in 3 months time. Are you losing? Nope! Better still, I managed to convince some of my friends to buy in at 0.2347/unit. One of them invested RM5000 and at current price, he is earning RM379 within 2 months and he is going on a vacation to Langkawi using the profit he earned. Isn't it cool if one of these days you get to tell your friend gleefully," Yo, I am buying the Samsung SGH-D807, but I am not paying for it."
Posted by gnustiy @ Sun 24 Sep, 06, 09:37PM under Public Mutual
This is what I learnt from my Supervisor last week. Why perform fund switching? To retain the asset value of one's investment by switching the value from Fund A (aggressive) at its peak value to Fund B (conservative). Then wait till there is a dip in the price of Fund A again, then switch back from Fund B to Fund A. By repeating the above, the return of investment (ROI) will be much more promising. I illustrated the explanation above in the scenario as follows:
Let's say you invested in Public Equity Fund (PEF) since 22 Sep 2005 and at 8 May 2006, your profit margin is 13%. If you do nothing about it, one month after, the price dipped all the way till 13 Jun 2006 and now your profit margin is only around 2%. Your loss is 10%! For example, if you threw in RM 1000 on 22 Sep 2005, your total asset is RM1130 and RM1020 on 8 May 2006 and 13 Jun 2006 respectively.
On the other hand, if you have a responsible agent to give you a call on 10 May 2006 to ask you to switch your total asset (RM1130) to another fund, say Public Select Bond Fund (PSBF), your 12% return is retained (we call it freeze). Note that a bond fund is a conservative fund and the price fluctuation is not as volatile as equity fund and hence less susceptible to have a downfall when the market is bad. Now, you can wait for your opportunity.
On 13 Jun 2006, if yet again, your agent call you to switch your fund back to PEF. And somewhere around end of August 2006, you gain another 10% from it, your asset value is now RM1243. Your total return of investment in less than a year (11 months) is 24.3%! Compared with if you do nothing about it, by end of August 2006, your return is still pretty good at 12%, but why earn less when you can gain more?
Posted by gnustiy @ Wed 29 Mar, 06, 10:22PM under Public Mutual
Today, I would like to talk to you about Inflation. In economics, inflation is a change in some important measure of money which says either real or apparent value is falling. The three most obvious versions of this, each held by some economists to be "real" inflation, are for prices to rise compared to the currency in question, the overall value of that money to fall (perhaps compared to other currency), or for more of that money to be added to the economy. More specific examples:
I did some calculations online and here's what I get: Something that cost RM1000 in 1996 will cost RM1213.82 today. Also, if you were to buy exactly the same products in 2006 and 1996, they would cost you $1000 and $823.84 respectively. Imagine that, we have to pay for the same thing 20% more within a span of 10 years. A Honda City worth RM86K today will cost RM 100K++. Believe me, this situation will aggravate in the coming 10 years time, coupled with the fact that there is a consistent petrol hike every year. Inflation, which hit a six-year high in May 2005, could edge higher before tapering off later this year, Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz was reported as saying to The Sun. What is the rate now? 3.1% ~ 3.2%? That figure is just an average throughout Malaysia, in Penang or Kuala Lumpur or Johor Bahru, the inflation rate is easily 4 ~ 5 %! So how do we hedge inflation? Easy, put your money in "something" that would generate return which is higher than the inflation rate. Invest! Most of the unit trust funds offered by Public Mutual gained more than 8% in return per year. There are also some excellent funds which fetch more than 50% of return in a span of 3 years. Which means, you can double your money within 1.44 years! Don't procrastinate anymore, path your future now!
Posted by gnustiy @ Tue 07 Mar, 06, 11:21PM under Public Mutual
Something to share: I knew the concept and importance of investment during 1st year in university. I am glad and awfully thankful to the seniors that provided the valuable exposure which only now, when I am working and financially independent, get to apply what I have learnt into practice. As in those days when my survival solely relied on the PTPTN loan and meager tuition fees from teaching mathematics, I did not have enough money to spare. Now when I am able and ready to invest, I realized that I had lose out so much due to the compound of interest, which according to Albert Einstein as one of the wonder in the world, in mathematics of course. A simple scenario would be: If you plan to have a RM120,000 education fund and have 20 years to raise the fund, let's say you invest in some investments that generates an annual rate of return of 12%, you would need to invest only a little over RM120 a month.A delay of 5 years, and with 15 years left you will need over RM240 a month. Procrastinate another 10 years, you will have to take almost RM1,470 each month to achieve your target.
For those who had taken the economics subject in uni should be able to do the calculations.
However, it is better to be late than never. I just started investing in another fund under the management of Public Mutual. In fact, I am a certified Public Mutual agent.
For those who doesn't find that the scenario above comprehensive, I will post a table on the power of compound interest for your reference tomorrow.
Don't wait, start when you are young.
Yours sincerely. 03/08/2006 ********************************************************* As promised, the table below will show you The Power of Compound Interest:
Mode of investment: RM100 at the beginning of each month. Rate of return is 10% per annum and interest income accrued and compounded monthly. The return is more than 13 fold with a mere RM100 per month. I believe most of you working folks are able to fork out more than that monthly, right? Now do you realized that the sum is not a major problem? It's just that you need to let the compound interest works its magic, with ample time. Till then. Yours sincerely. 03082006
Posted by gnustiy @ Tue 07 Mar, 06, 11:16PM under Public Mutual
Public Mutual Swept 12 Awards at The Edge-Lipper Awards 2006
Read more at:http://www.publicmutual.com.my/article.aspx?id=5172 Public Mutual Won 18 Out of 22 Awards At The Star/S&P’s Awards 2006
Read more at:http://www.publicmutual.com.my/article.aspx?id=5188  |
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