What Fund should I recommend my clients?

Considerations:

• 1) Time Horizon

• 2) “Price Fluctuating” Tolerance

• 3) Lump Sum, or Monthly Investments

Time Horizon

• How long the client plans to stay invested before withdrawing the funds.– Purpose of investing

• Generally, the shorter the time horizon, the lower the “price fluctuation” that should be recommended.

Less than 3 years

• 6 Months to 3 Years : PBOND - Public Bond Fund

• 1.5 Years to 4 Years:PEBF - Public Enhanced Bond Fund

More than 3 years

• Conservative to Moderate “Risk”

Balanced Funds: PBF – Public Balanced Fund , orPFEBF – Public Far East Balanced Fund

More than 3 years

• Moderate “Risk” – Mainly within Malaysia because of lesser foreign currency risk.

Dividend Funds, or Blue Chip FundsPDSF – Public Dividend Select FundPFEDF – Public Far East Dividend FundPIX – Public Index FundPRSF – Public Regular Savings Fund

More than 3 years

• High “Risk” – “Aggressive” in QFR

Foreign Funds, or Growth Funds, Small Cap FundsPEF – Public Equity FundPFES – Public Far-East SelectPSMALLCAP – Public SmallCap Fund

More than 3 years

• Specific FundsChina Market – PCSF, PCIF, PCTF

Property Market – PFEPRF

Consumer Market – PFECTF

EPF Investments

• The only Bond Fund – PSBF– Unless for Asset Allocation, don’t recommend

PSBF 100%, because the return would not be as good as EPF’s Return.

• The only Balanced Fund – PIBF– Better than PSBF over medium to long term,

recommend if client is conservative, or scared of current market.

EPF Investments

• Moderate “Risk”

PIX – Public Index FundPRSF – Public Regular Savings FundPIDF – Public Islamic Dividend Fund

EPF Investments

• High “Risk”

PIEF – Public Islamic Equity Fund PISTF – Public Islamic Select Treasure FPIOGF – Public Islamic Optimal Growth F

Lump Sum

• If Amount is “Big”, I strongly suggest Asset Allocation- A portion in Low “Price Fluctuation” Fund- A portion in Medium “Price Fluctuation” Fund (Optional)- A portion in High “Price Fluctuation” Fund(Optional)

Monthly Investments

• Share the concept of Dollar Cost Averaging– Best applied over 3 years or more to take

advantage of the market’s fluctuation.• Use Funds that fluctuates a lot for

maximum advantage

– PEF, PFES, PITTIKAL, PFEDF, PDSF

Islamic Funds ?

• To cater for Bumiputra market.– Generally, I prefer funds that have less

restrictions.

– Example : Restaurant.

Support

• Email : peterpmutual@yahoo.com

• Web : http://peterpmutual.blogspot.com- News, Books, Audios, Articles, etc.

• Phone : Shu-Yin (012 – 4055 918)

Change Forms(Cash, EPF, Switching)

Collect Master Prospectus

What should we do when the returns are negative ?

1. Don’t Panic.2. Compare the fund's return to the

benchmark.3. Hold On as eventually, the returns would

be better going forward.4. Do a Topup, buying it on Discount /

Sale.