HELP! I’ve made money on my mutual fund investment! (2) Sunday, Feb 11 2007 


 (Check this! Bagan 18 bar and restaurant or “Penang‘s closest brush with fabulousness” 🙂 )  

(continued from part one )

Here’s my 2 cents worth to Mike.  

He should manage his portfolio according to the asset allocation model appropriate for his circumstances. Asset allocation is just a fancy phrase for the process of dividing up our investments into various asset classes. Primarily the asset classes are shares or equities, bonds and cash. For example you may decide on a 60:30:10 asset allocation model which means 60% of your money is in equities, 30% in bonds and 10% in cash.   (more…)


HELP! I’ve made money on my mutual fund investment! Tuesday, Jan 16 2007 

I know I know most of us have got worse problems in our lives. But this is a nice dilemma to start 2007 with. As most of you would probably know, the market has been having a pretty good run in recent months. The KLCI has gone from a low of 886 points in mid June 2006 to close at 1127 as at 15 January 2007, a 27% increase over just 7 months.


A lucky friend of mine, Mike, invested a sum of RM30,000 at that very opportune time in June 2006 into the Public Ittikal fund, paying 82 sen per unit. Today the price is 98 sen per unit. This translates into a return of 20%. And this is net of sales fees and management charges. OK so the fund didn’t quite beat the market’s performance of 27% after taking into account the fund company’s fees and charges…but RM6,000 is still a great return for half a year’s investment.


So he calls me up to get advice on whether to sell off the units and cash out or….if not, then what to do. A very interesting dilemma indeed. The easy way out would be to sell it all off and put it all into FD or a capital guaranteed kind of deposit as Mike wants to do. Alternatively he’s also thinking ….there’s going to be another push leading up to Chinese New Year as has been the tradition (that’s when the greed monster in all of us kicks in)…maybe to hold on…! Taaaayyy! Wrong! We need to go back to the basics and consider the fundamentals. More on this in my next post.

Risk profile: Are you a pussycat? Wednesday, Aug 23 2006 


According to its prospectus, Public Asia Ittikal Fund, the latest fund from Public Mutual is aimed at “aggressive” investors who are seeking capital growth over at least the mid-term (minimum of 3 years). In other words, PAIF is not for pussycats! Or so it would appear.

People usually get scared off when they hear the word “aggressive”. Visions of Rambo and Arnold (aka the Terminator) are very much at odds with the “metro-sexual” New Age aware society we live in today. And when the term “aggressive” is bandied about in the context of investing our hard-earned money, we get even more spooked

So then you might start to think, maybe it’s only the super-rich or the get-rich quick types who invest in the stock market and mutual funds….Not so!