"Sesungguhnya Allah dan para Malaikat berselawat ke atas Nabi S.A.W, wahai orang-orang yang beriman, ucapkanlah selawat dan salam penghormatan ke atas Nabi Muhammad S.A.W"-Allahumma Solli'ala Sayyidina Muhammad-

Thursday, December 23, 2010

How the Unit Trust (Amanah Saham) generate profit to you

The key to SUCCESS in unit trust investment is = Distribution+reinvestment+capital gain+right timing = Profit(SUCCESS)

Ditributions
As simple as call 'dividend' payment to the unit holder. Almost all of dividend in public mutual fund paid in annual basis and public mutual never fail to declare dividend to their unit holder so far.

Reinvestment
All dividend paid to you is in units which can convert into RM. Since you have the choice to withdraw or to reinvest, this portfolio calculation we are going to show you is base on situation where you want to reinvest it on top of your current units own.

Capital Gain
Calculate on bought price vs sell price. Selling price at higher than bought price will make you earn capital gain. E.g: buy @ RM0.25sen & sell @RM0.29 sen so the capital gain is 4sen (0.29-0.25)

Right Timing
Current (2010) economic report shows Malaysia is in recovery stage after hit by global recession in 2008 & 2009. MIER reported it's maintain 2010 and 2011 economic growth of 6.5% and 5.2%(read more). Yes! this is the right timing. Investment is about medium to long term. We put minimum 3 years (medium) to calculate your portfolio.

Investment details
Invest RM 10,000 lump sum (cash) with service charge of 5.5% .
Net Amount investment = RM 9,478.70.
NAV buy @ RM0.25sen.
Total unit hold 9,478.70/0.25 = 37,914.80

1st Year
Distribution 1.75 sen. 37,914.80 x 1.75 sen = RM663.51
Reinvest at zero cost = 663.51/(0.25-0.0175)-dividend adjustment =2,853.81
New unit own after distribution : 37,914.80+2853.81=40,768.61

2nd Year
distribution 1.75 sen. 40,768.61 x 1.75 sen = RM713.45
Reinvest at zero cost = 713.45/(0.25-0.0175)-dividend adjustment =3,068.60
New unit own after distribution : 40,768.61+3,068.60=43,837.21

3rd Year
distribution 1.75 sen. 43,837.21 x 1.75 sen = RM767.15
Reinvest at zero cost = 767.15/(0.25-0.0175)-dividend adjustment =3,299.57
New unit own after distribution : 43,837.21 + 3,299.57=47,136.78

Sell after 3 years
Selling price @ RM 0.29sen.
47,136.78 unit X 0.29 sen = RM13,669.67
Total % ratio = (13,669.67-10,000)/10,000 = 36.69%

Notes
1) Rate of dividend = 7% (1.75/25). This is based on normal scenario. The better the market, maybe dividend rate will be higher.
2) By doing reinvestment, we could invest at lower NAV and at zero cost (not our pocket money)
3) Price movement is consider moderate in recovery/growth economic situation under equity market performance. The better the economic, the higher the price could be.

Conclusion
Invest in Unit Trust Public Mutual in medium to long term in this current recovery & growth economic situation will benefit you in total return of your investment portfolio.
Therefore, you should consider to maximize your return in the very minimum level of risk by diversified your investment in unit trust public mutual.

Should you have any inquires or comment, please do not hesitate to e-mail me at fadhilhussin.publicmutual@yahoo.com

2 comments:

syamsul said...

kemah ejen kawe ni...bilo buleh sain bore lg neh

Fadhil Hussin said...

bila leh jumpa abe aji