DISQUS

aw · 2 years ago

For b), I have doubts it is workable for such a short time frame of 5-6 months.

For capital-guaranteed funds, the lock-in period is usually at least 2 years. Some 5-10 years.

For normal fixed income or dividend, the sales charge is already 6% in Malaysia. Fixed deposit rates right now is 3.3% for 6 months. I doubt there's any fund that gives at least 9.3% in only 6 months!

aw · 2 years ago

Slight errata, I doubt there's any "fixed income or dividend" fund that gives such a return.

To get that kind of return, you would have to go for more aggressive equity funds in this market condition.

yowchuan · 2 years ago

Hi aw,

Thanks for the input. I am basically recommending the funds that will most likely not "depreciate in value", and hence, I do not emphasize very much on the capital growth of the fund. Rather, the objective is to put the money in a fund (long term) where the rates are better than FD. Notice that I did not project or estimate any rate of return, since it will vary from one fund to another.

I agree with the statements you brought up on the funds' characteristics. My recommendations are not based on the rate of return, so I hope that you don't get me wrong.

I will be posting the next episode in a while, which my clear things up a little. Schedule are getting rather hectic as I am actually in the midst of moving my office. :-)

Cheers!