Posted by 90754248 > 2013-04-02 14:26 | Report Abuse

Another reason that i want to add is the high charges in fees, initally charges 5 - 6%, management fees of 1.5 to 1.8%, even the fund is performed at 10%, after the say 5.5% initially charged and the 1.5% management fees, the custoemer only get 3%, might as well put in the money in FD as no risk at all. From my experience, it is not easy to make money in the UT even with the dollar averaging method. Buy share or REITs have better chance to make money.

Posted by Shane My > 2013-04-02 14:44 | Report Abuse

That's a misconception. The Initial Charge is a one time fee only after which the following year there will not be charged another 5-6%. Secondly the management fee is deducted on from the day to day Net Asset Value (NAV) of the fund. When shown a 10% return for example, that is the real return of your investment. There is no need for deduction of the management fees anymore. :)

Posted by Shane My > 2013-04-02 14:49 | Report Abuse

As for share or REITs, I assume on the average that you can obtain about 10-20% per year returns but the investor is required to put in the hardwork into monitoring and decision making. Emotional stress during a bear market could lead to poor decision making. As for unit trust, the management of funds are left to the fund managers without the need for investors to worry much. The most important aspect in unit trust is of course selecting the right fund. just my 2 cents

Posted by kcchongnz > 2013-04-02 15:00 | Report Abuse

You put in 100,000 initially, and the upfront charge is say 5.0%, or 5500 gone with the wind, leaving 95000 to do the work. It is a very hard work. Assuming the annual return is 12%, which is a very reasonable return of equity in Malaysia and total management expense of 1.8% per year,which I believe is on the low side. See for yourself what is the return of your investment in absolute as well as CAR of return for various years of holding period below:

Year NAV CAR
1 103300 3.3%
2 112200 5.9%
3 122000 6.9%
5 144200 7.6%
10 218800 8.1%

The conclusion is you have to hold for long-term. Even a long-term of 10 years, you are still below what the return of the market, for quite a big margin in my opinion.

But does it mean that unit trust investment is bad? No in my opinion. It is still good for many people who does not have the time nor the knowledge of investing; and they must hold for long-term. This is because many small time retailers are not investing; they are punting, punting with insiders and manipulators. It is better to make some, better than fixed income, rather than losing in gambling.

Posted by Shane My > 2013-04-02 15:15 | Report Abuse

May I ask what is CAR?

Posted by 90754248 > 2013-04-02 16:13 | Report Abuse

I put in one fund for 4 years in a reputable UT company, with SI deduction every month, never sell and just top-up, after 4 years, total loss 15%.

Posted by kcchongnz > 2013-04-02 16:15 | Report Abuse

Compounded annual return, something similar to compound interest. with 10% CAR, you 100,000 will grow as below:

Year Value CAR
1 110000 10%
2 121000 10%
3 133100 10%
5 161051 10%
10 259374 10%

Posted by Hustle > 2013-04-02 16:23 | Report Abuse

In M'sia that's only 1 fund always stay on top that is Everyday Punting Fund,buy others fund at last become chee cheong fund.

Posted by iafx > 2013-04-02 17:28 | Report Abuse

cheecheongfund... hahaha... like this one?

"Posted by kcchongnz > Apr 2, 2013 03:00 PM | Report Abuse

....bs...bs...bss...

...This is because many small time retailers are not investing; they are PUNTING, PUNTING with insiders and manipulators. It is better to make some, better than fixed income, rather than losing in gambling."

having bs so much, he forgotten and shoot pica his own lobang:

"Posted by kcchongnz > Apr 1, 2013 04:50 PM | Report Abuse

why i asked you not to follow? I can tell you I know the option pricing quite well...bs..bs.bss.. But tell you a secrete, I will STILL PUNT. Just wait for BETTER time sssh."

so, watchout, no joke, lots of si-tipu-roti-canai around :)

Posted by kcchongnz > 2013-04-02 17:48 | Report Abuse

The two posts are related meh? Yes, i punt on derivatives and I have been saying it all the time. But i am good mah, are you? Yes I know about option pricing very well. Why you say bs? Come to the thread I have created for both you and me to rant and rave so that we don't disturb others, I will show you who bs, who knows and knows not. But why you so scared to go to that thread? You got LP or not one?

Posted by Shane My > 2013-04-03 07:51 | Report Abuse

hi, do drop me an email at sickfreak03@gmail.com, i would like to know which fund that you bought that is still losing -15%.

Posted by 90754248 > 2013-04-03 08:42 | Report Abuse

Email sent

Posted by Jonathan Keung > 2013-04-03 09:08 | Report Abuse

the main grouse is the high up front sale charges levied against investor. for cash investor 5% is very high and to be honest if you work backwards no ALL funds are performing.

for long term holders( above 5 years) if you invest in blue chip counters or buying properties, the returns may even be higher compared to unit trusts funds return. government unit trust ( eg. ASM or ASB ) is highly recommended for the ordinary "man on the street" where their track record and solid records is there.


i am not against unit trusts savings but i am very disturbed over the high up front sales charges and lack of information from the fund managers. their dividend or distribution policy where as best " you can guess based on past result". they should be more forthcoming on this issues and their investments. this is my personal viewpoint ( no disrespect to any UTC )

Posted by plutus > 2013-04-03 11:19 | Report Abuse

why not invest through fundsupermart.com.my? 0~2% sales charge instead of the usual 5.5%, has many analysis, get to choose from different fund houses too.. well true some mutual fund really kanasai and loss making.. just buy those with the BEST ranking: leader in return, consistent, and preservation! =)