What Fund Should I Recommend My Clients - 3 May 2008

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3rd May 2008 Training by Peter Lim

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What Fund Should I Recommend My Clients - 3 May 2008

  1. 1. What Fund should I recommend my clients?
  2. 2. Considerations: <ul><li>1) Time Horizon </li></ul><ul><li>2) “Price Fluctuating” Tolerance </li></ul><ul><li>3) Lump Sum, or Monthly Investments </li></ul>
  3. 3. Time Horizon <ul><li>How long the client plans to stay invested before withdrawing the funds. </li></ul><ul><ul><li>Purpose of investing </li></ul></ul><ul><li>Generally, the shorter the time horizon, the lower the “price fluctuation” that should be recommended. </li></ul>
  4. 4. Less than 3 years <ul><li>6 Months to 3 Years : </li></ul><ul><li>PBOND - Public Bond Fund </li></ul><ul><li>1.5 Years to 4 Years: </li></ul><ul><li>PEBF - Public Enhanced Bond Fund </li></ul>
  5. 5. More than 3 years <ul><li>Conservative to Moderate “Risk” </li></ul><ul><li>Balanced Funds: </li></ul><ul><li>PBF – Public Balanced Fund , or </li></ul><ul><li>PFEBF – Public Far East Balanced Fund </li></ul>
  6. 6. More than 3 years <ul><li>Moderate “Risk” – Mainly within Malaysia because of lesser foreign currency risk. </li></ul><ul><li>Dividend Funds, or Blue Chip Funds </li></ul><ul><li>PDSF – Public Dividend Select Fund </li></ul><ul><li>PFEDF – Public Far East Dividend Fund </li></ul><ul><li>PIX – Public Index Fund </li></ul><ul><li>PRSF – Public Regular Savings Fund </li></ul>
  7. 7. More than 3 years <ul><li>High “Risk” – “Aggressive” in QFR </li></ul><ul><li>Foreign Funds, or Growth Funds, Small Cap Funds </li></ul><ul><li>PEF – Public Equity Fund </li></ul><ul><li>PFES – Public Far-East Select </li></ul><ul><li>PSMALLCAP – Public SmallCap Fund </li></ul>
  8. 8. More than 3 years <ul><li>Specific Funds </li></ul><ul><li>China Market – PCSF, PCIF, PCTF </li></ul><ul><li>Property Market – PFEPRF </li></ul><ul><li>Consumer Market – PFECTF </li></ul>
  9. 9. EPF Investments <ul><li>The only Bond Fund – PSBF </li></ul><ul><ul><li>Unless for Asset Allocation, don’t recommend PSBF 100%, because the return would not be as good as EPF’s Return. </li></ul></ul><ul><li>The only Balanced Fund – PIBF </li></ul><ul><ul><li>Better than PSBF over medium to long term, recommend if client is conservative, or scared of current market. </li></ul></ul>
  10. 10. EPF Investments <ul><li>Moderate “Risk” </li></ul><ul><li>PIX – Public Index Fund </li></ul><ul><li>PRSF – Public Regular Savings Fund </li></ul><ul><li>PIDF – Public Islamic Dividend Fund </li></ul>
  11. 11. EPF Investments <ul><li>High “Risk” </li></ul><ul><li>PIEF – Public Islamic Equity Fund </li></ul><ul><li>PISTF – Public Islamic Select Treasure F </li></ul><ul><li>PIOGF – Public Islamic Optimal Growth F </li></ul>
  12. 12. Lump Sum <ul><li>If Amount is “Big”, I strongly suggest Asset Allocation </li></ul><ul><li>- A portion in Low “Price Fluctuation” Fund </li></ul><ul><li>- A portion in Medium “Price Fluctuation” Fund (Optional) </li></ul><ul><li>- A portion in High “Price Fluctuation” Fund </li></ul><ul><li>(Optional) </li></ul>
  13. 13. Monthly Investments <ul><li>Share the concept of Dollar Cost Averaging </li></ul><ul><ul><li>Best applied over 3 years or more to take advantage of the market’s fluctuation. </li></ul></ul><ul><li>Use Funds that fluctuates a lot for maximum advantage </li></ul><ul><ul><li>PEF, PFES, PITTIKAL, PFEDF, PDSF </li></ul></ul>
  14. 14. Islamic Funds ? <ul><li>To cater for Bumiputra market. </li></ul><ul><ul><li>Generally, I prefer funds that have less restrictions. </li></ul></ul><ul><ul><li>Example : Restaurant. </li></ul></ul>
  15. 15. Support <ul><li>Email : [email_address] </li></ul><ul><li>Web : http://peterpmutual.blogspot.com </li></ul><ul><li>- News, Books, Audios, Articles, etc. </li></ul><ul><li>Phone : Shu-Yin (012 – 4055 918) </li></ul>
  16. 16. <ul><li>Change Forms </li></ul><ul><li>(Cash, EPF, Switching) </li></ul><ul><li>Collect Master Prospectus </li></ul>
  17. 17. What should we do when the returns are negative ? <ul><li>Don’t Panic . </li></ul><ul><li>Compare the fund's return to the benchmark. </li></ul><ul><li>Hold On as eventually, the returns would be better going forward. </li></ul><ul><li>Do a Topup , buying it on Discount / Sale. </li></ul>

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