The document discusses how investing in an equity fund can provide better returns than fixed deposits. It analyzes the historical performance of a Malaysian public index fund (PIX) over various time periods and under different rules: 1) Investing for the medium to long term (3 years or more) reduces the risk of losses and increases average returns compared to shorter periods. 2) Avoiding overpaying by only investing when the P/E ratio is below 18 improves performance over 3 and 5 year periods. 3) Not underselling when the P/E ratio is above 16 also leads to better returns. Following all three rules means there is a 0% chance of losses over 3 and 5 year periods

1. How to assure your return in Equity fund will be better than FD

3. Yearly Return of PIX

4. Yearly Return Analysis of PIX 23.5% 4 No of Negative Periods 76.5% 13 No of Positive Periods 17 Total Periods -39.2% Worst Total Return 63.4% Best Total Return 10.8% Average Total Return

5. Yearly Return of PIX (Overlap by months)

6. Yearly Return Analysis of PIX 28.8% 55 No of Negative Periods 71.2% 136 No of Positive Periods 191 Total Periods -39.2% Worst Total Return 100.3% Best Total Return 12.5% Average Total Return

8. 3 Years Return of PIX (Overlap by months)

9. 3 Years Return Analysis of PIX 23.4% 39 No of Negative Periods 76.6% 128 No of Positive Periods 167 Total Periods -12.5% Worst Annualised Return 34.7% Best Annualised Return 9.0% Average Annualised Return -33.0% Worst Total Return 144.6% Best Total Return 29.3% Average Total Return

10. 5 Years Return of PIX (Overlap by months)

11. 5 Years Return Analysis of PIX 18.9% 27 No of Negative Periods 81.1% 116 No of Positive Periods 143 Total Periods -5.0% Worst Annualised Return 26.8% Best Annualised Return 7.5% Average Annualised Return -22.6% Worst Total Return 202.3% Best Total Return 42.1% Average Total Return

14. 3 Years Return of PIX + Don’t Overpay (Overlap by months)

15. 3 Years Return Analysis of PIX + Don’t Overpay 5.2% 4 No of Negative Periods 94.8% 73 No of Positive Periods 77 Total Periods -1.3% Worst Annualised Return 31.2% Best Annualised Return 12.1% Average Annualised Return -3.9% Worst Total Return 125.6% Best Total Return 40.9% Average Total Return

16. 5 Years Return of PIX + Don’t Overpay (Overlap by months)

17. 5 Years Return Analysis of PIX + Don’t Overpay 0.0% 0 No of Negative Periods 100.0% 53 No of Positive Periods 53 Total Periods 4.0% Worst Annualised Return 21.1% Best Annualised Return 12.4% Average Annualised Return 21.7% Worst Total Return 147.0% Best Total Return 75.5% Average Total Return

20. 3 Years Return of PIX + Don’t Undersell (Overlap by months)

21. 3 Years Return Analysis of PIX + Don’t Undersell 28.0% 26 No of Negative Periods 72.0% 67 No of Positive Periods 93 Total Periods -11.5% Worst Annualised Return 34.7% Best Annualised Return 10.5% Average Annualised Return -30.8% Worst Total Return 144.6% Best Total Return 35.0% Average Total Return

22. 5 Years Return of PIX + Don’t Undersell (Overlap by months)

23. 5 Years Return Analysis of PIX + Don’t Undersell 14.5% 10 No of Negative Periods 85.5% 59 No of Positive Periods 69 Total Periods -5.0% Worst Annualised Return 26.8% Best Annualised Return 9.4% Average Annualised Return -22.6% Worst Total Return 202.3% Best Total Return 55.1% Average Total Return

26. 3 Years Return of PIX + Don’t Overpay + Don’t Undersell (Overlap by months)

27. 3 Years Return Analysis of PIX +Don’t Overpay + Don’t Undersell 0.0% 0 No of Negative Periods 100.0% 28 No of Positive Periods 28 Total Periods 5.7% Worst Annualised Return 31.2% Best Annualised Return 16.6% Average Annualised Return 17.9% Worst Total Return 125.6% Best Total Return 58.4% Average Total Return

28. 5 Years Return of PIX + Don’t Overpay + Don’t Undersell (Overlap by months)

29. 5 Years Return Analysis of PIX +Don’t Overpay + Don’t Undersell 0.0% 0 No of Negative Periods 100.0% 24 No of Positive Periods 24 Total Periods 4.8% Worst Annualised Return 21.1% Best Annualised Return 14.4% Average Annualised Return 26.2% Worst Total Return 147.0% Best Total Return 90.9% Average Total Return

41. FAQ 1: How long have to wait to sell at a favorable price (P/E above 16) ?