Monday, December 8, 2008

My First Unit Trust Investment: Public Mutual - Public Dividend Select Fund

It was end of April 2005. A close friend of my brother called me up and said that she has 'something' to offer to me. I knew she's someone I can trust. So, we meet up during the following weekend to see what offer she has for me. It's a unit trust @ mutual fund initial offer by Public Mutual, Public Dividend Select Fund (PDSF). She told me the return from unit trust investment is much better compared to Fixed Deposit. I knew the existence of unit trust and had read somewhere about it, but it's still a very blur topic for me. I asked her some questions, in which she did answer me but I was still not clear about unit trust. I told her I need to do some research before I decided whether I want to invest or not. During the weekend, I spent some time doing research on Public Mutual and unit trust or mutual fund. For most of the questions, I found the answers through my online research at Public Mutual website, Securities Commission of Malaysia website and some blogs & forums where they discussed on unit trust investment.
The following Monday, I called the friend and purchased my first unit trust from her, Public Dividend Select Fund (PDSF). I am the 'play safe' and not the high risk type, so I only invested the minimum initial investment which is RM1K. It was PDSF initial offer period, so there's free 1% additional units. The unit price is RM0.25. That means, I have a total of 4040 units. The calculations as below:

Initial investment = RM1000
Price per unit = RM0.25
Total Unit (RM1000/RM0.25) = 4000 units
1% free unit during initial offer period (1% x 4000 units) = 40 units
So, the total unit for my first investment is 4040 units.

Throughout the past 3.5 years, I did monitor the performance of PDSF from Public Mutual website. The peak performance was somewhere in Dec 2007, where the price shoot to about RM0.32/unit. So far, I had received 4 times dividends (May'06, May'07, Dec'07 & May'08). As at 31 May 2008, my total unit for PDSF is 5333.05. That is an increment of 1293.05 units compare to my initial investment (4040 units). Due to global economy crisis, the current price had dropped to RM0.2094/unit (price as at 5 Dec 2008). If I wish to sell off my PDSF now, I will be receiving RM1,116.74 (calculations: 5333.05 units x RM0.2094). After 3.5 years, the return is RM116.74 for investment of RM1K. NO, I am not going to sell if of yet. The price will go up again, just give PDSF more time.

The performance chart below summarize part of the story above.

From PDSF, I had also do more research and readings on unit trust and invested in other unit trust investments. I am still learning. And it will be great if you can share your unit trust investment experience as well. Feel free to comment.

2 comments:

  1. hi, if you have the extra cash you can top up on your current investment. this is so to lower down your average cost per unit. minimum amount for additional investment is only rm100.

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  2. hi jamie, yes! i am investing from time to time :) Coz this is the best method for me to lower my average cost per unit. Thanks for your advice :)

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