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Decided to make adjustments on the way I blog & share due to time constraints and other commitments. In the coming weeks you should see them. Short updates but more frequent & concise.

Sunday, January 5, 2014

Aboi's Updates For Malaysian Mutual Funds for 1H'2014

I am starting a new posting series for mutual funds selection within Malaysia; to be published every half of the year: January/July *unless something urgent calls for an ad-hoc post. I've actually started this by myself since 2010 but was never shared to the public until 2012. You can head to my Archives tab and refer to the section entitled "Mutual Funds in Malaysia". There are 10 useful posts if you have the time for it. Before you say many ah. Next time la...Btw next time in Malaysia is always never. 

What is my ultimate goal investing in mutual funds? "At 15% returns p.a. target, my RM10,000 will grow to RM662,000 in 30 years!" Why 30 years? Because I started at age 24, so after 30 years I am near retirement age, at least that's what I hope :) To those who still live in the Fixed Deposit heaven, please don't especially for the long term (short term I agree) mainly because the Malaysian inflation rate figure is seriously flawed. (2-3%/year for the last decade? It's just making fun of you and me.

Let just say you continue to invest cash in your FD 3.5% returns p.a., how much will it grow? Your money will only grow 2x times (double) in 20 years. But what if you can maximize it to say 10%, your money will double in 7.5 years (three times the speed yay). 15% and it will grow 4 times every 10 years. If you eat enough ginseng and bird’s nest, you will probably have a lot of 10 years in your life! If you are 25 and you live until 75, you have five 10 years. Eat more ginseng and maybe you have six, seven or eight 10 years more. Enuff ka with ya FD?? If you live in kampung maybe can survive la...on 'nasi lemak'

**P.S. The total expense ratio, or TER, is a measure of the total cost of a fund to the investor. Total costs may include various fees (purchase, redemption, auditing) and other expenses. The TER is calculated by dividing the total annual cost by the fund's total assets averaged over that year, and is denoted as a percentage.


No deletions in my recommendations, added AMB Dana Arif.
I have AmDynamic Bond (purchased on Sept 2013) back when subscriptions was reopened. Loss is -0.48% to date. Expected loss due to more units being opened up causing NAV to be diluted. However loss has been declining rapidly from -2.31% to -0.48%. I expect it be in +ve region in Q1'14.

Mixed Assets

No deletions or additions in my recommendations.
I have Hwang Select Income (purchased on March 2010) Profit is 22% to date or 6.53% annualized TWRR. Doing very good as expected.


I deleted Public Focus Select (Equity Malaysia small cap) and replaced it with EastSpring Investment Small-cap fund, reasoning behind #1 small caps are volatile in nature and #2 preservation should be gauged from 1-3 instead of 1-5. Public has good preservation of 4 but their returns are abysmal ranking on at 2 instead of the highest 5. It's kinda of a trade off but for small cap funds, I think preservation is secondary. You may agree or not agree.  

I have Kenanga Growth Fund (purchased on February 2013) Profit is 27.59% to date. I am extremely pleased with the performance and was beyond expectation.

My five rules of choosing funds:
#1 Avoid choosing big sized popular funds!
#2 Compare fund expenses!
#3 Information on the fund manager!
#4 Good funds don't advertise.
#5 Avoid the usual past performance > riskiness of fund > manager's rep (some don't) > fund expenses > popularity of fund.  Look from the opposite direction and do your filtering from there.

Overall my portfolio weighted annualized MWRR across all 3 segments is at 13.12% (spanning 3 years), which is pretty close to my target 15%. Once the AmDynamic Bond crosses over to the profit region I am confident my target is achievable. However the portfolio is relatively new (2 new additions in 2013) but has already achieved a total return of 18.94% to date thus I am convinced that my way of filtering and selecting over 400 funds in Malaysia is MAKING THE PROFIT THAT I AM LOOKING FOR. Furthermore all the selections that I have done back in December 2012 are all paying handsome returns (none giving -ve losses) to date and ranked within the top 10. How long did I take to filter 400 of these? Only one Sunday afternoon with a cup of coffee. No need to find agent laa...I be yours for FREE :)

For a barrage of information to overload please get it from my Dropbox area at:
Fund Table Capital Investing. Look for the file 

1 comment:

Anonymous said...

I like your last word! It is waste of time n higher fee some more. UT also like property, the good ones are hidden treasure, you chase after them. When the market slip pass 200ma, go hibernate in money market, its faster. Simplelife in ekkamai.

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