WANT TO INCREASE YOUR

UNIT TRUST INVESTMENT

BY MORE THAN
200%
IN 4 YEARS?

Unit trust data as of 30 October 2010

1
 DON'T YOU FEEL DISGUSTED/ANGRY WHEN ...

YOU ARE GETTING NOWHERE/STUCK WITH YOUR CURRENT UNIT

TRUST INVESTMENT FOR QUITE SOME TIME NOW? ...

OR

EACH TIME YOU ASKED/CALL YOUR UNIT TRUST AGENT ABOUT

YOUR NOT-SO-GREAT INVESTMENT RESULT, HE/SHE WILL
ALWAYS ASSURE YOU THAT YOU ARE IN FOR THE LONG
HAUL? ...

OR

YOU THINK THAT INTEREST RECEIVED FROM ASB, EPF, FIXED

DEPOSIT OR REGULAR SAVING ACCOUNT IS SO SMALL THAT
YOU WISH FOR AN INVESTMENT THAT CAN OFFER MORE THAN
WHAT CAN BE ACHIEVE FROM THOSE TYPE OF INVESTMENTS ...

IF YOU ANSWERED YES IN ANY ONE OF THOSE QUESTION, THEN READ ON ...

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 Answer for question #1 & #2:

There are 2 things that directly impact

your unit trust investment:

● Which fund to invest, and

● When is the right time to buy or sell your

fund

Answer for question #3:

Unit trust investment are proven to give

higher profit compared to ASB, EPF, Fixed
Deposit and bank saving
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 INTRODUCTION

● KHAIRUL ARIFIN BIN SELAMAT

● Consultant for CIMB Wealth
Advisors Bhd (Agent Code:
00025003).
● Author of ebook on stock market
investing technique:
http://www.sistemsaham.com
● Share and unit trust Investment
blog: http://www.epinula.com
● Share and unit trust Investment
Facebook page:
http://facebook.com/epinula 4
 TYPE OF FUND TO INVEST IN
UNIT TRUST?
● There are 4 main category of unit trust fund:
Equity (consists mostly of stocks)
Fixed Income
Money Market
Mixed Asset
● Funds that gain the most during market up
trend is EQUITY fund.
● To maximise profit, invest in Equity related
fund and use MARKET TIMING AND
SWITCHING method.
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 ●
●
1,150.00
1,350.00
1,550.00
1,750.00
1,950.00

750.00
950.00
20060509
20060605
20060629
20060725
20060818
20060914
20061010
20061108
20061204
20061229
20070126
20070226
20070322
20070417
20070516
20070611
20070705

index movement.
20070731
20070824
20070920
20071017
20071113
20071207
20080107
20080205
20080304
20080331
20080424
20080522
20080617
20080714
20080807

KLCI CLOSE
20080903
20080929
20081028
20081121

IEAF
20081218
20090116
20090217
20090316
20090409
20090506

(Downtrend – switch/sell OR uptrend - buy)

20090601
20090625
20090721
20090814
20090910
20091008
20091103
20091130
20091228
20100122
20100222
20100319
Market timing is on the index (KLCI). What action to take

20100414
20100510
20100604
20100630
(buy/sell/switch) depends on signal produced by KLCI index

20100726
20100819
20100917
20101013
WHAT FUND TO INVEST (cont.)

Graph shows that Equity related fund (e.g. IEAF), mirror the KLCI
0.0000
0.1000
0.2000
0.3000
0.4000
0.5000
0.6000
0.7000
0.8000

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WHEN TO BUY, SELL OR SWITCH
YOUR FUND?

THERE ARE 3 TYPE OF UNIT TRUST

INVESTMENT METHOD:

● BUY & HOLD (B&H)

● DOLLAR COST AVERAGING (DCA)
● MARKET TIMING AND SWITCHING
(MTS)
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 DIFFERENT UNIT TRUST
INVESTMENT METHOD
BUY AND HOLD
(B&H)
● Or buy and forget. A passive investment strategy
based on the premise that over long periods of time,
the returns from common stocks/unit trust will exceed
the returns earned from other investments.
● Advantage : Very simple investment method
● Disadvantage : Things don't last forever.

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 DIFFERENT UNIT TRUST
INVESTMENT METHOD (cont.)

DOLLAR COST AVERAGING

(DCA)
● Investing equal dollar amounts regularly and
periodically over specific time periods (such as RM200
monthly) in a particular investment or portfolio. Giving
the investor a lower overall cost for the shares
purchased over time.
● Advantage : Small starting capital. Small subsequent
monthly investment.
● Disadvantage : Transaction fees can be substantial
(HUGE!).
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 DIFFERENT UNIT TRUST
INVESTMENT METHOD (cont.)

MARKET TIMING AND SWITCHING

(MTS)
● Market timing is the practice of buying and selling
securities based on economic trends, corporate
information, and market factors. It is also known as
tactical asset allocation or active investing.
● Advantage : Able to maximise the potential return from
market up trend and minimise the risk/loss during
market down trend.
● Disadvantage : Very difficult to be successful at
market timing. Have to actively manage portfolio.
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 UNIT TRUST INVESTMENT METHOD
PERFORMANCE COMPARISON
DCA
● Initial minimum
investment RM500
and minimum regular
saving of RM200 per
month.
● Overall percentage
increase : 35.31%
● Compound annual
growth rate : 7.36%

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 UNIT TRUST INVESTMENT METHOD
PERFORMANCE COMPARISON (cont.)

B&H
● Initial investment
RM5,000
● Overall precentage
increase (4 years) :
62.26%
● Compound annual
growth rate: 12.86%

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 UNIT TRUST INVESTMENT METHOD
PERFORMANCE COMPARISON (cont.)
MARKET TIMING AND
SWITCHING
(MTS)
● Initial investment
RM5,000
● Overall
percentage
increase (4
years) : 201.04%
● Compound annual
growth rate:
31.72% !!
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 UNIT TRUST INVESTMENT METHOD
PERFORMANCE COMPARISON (cont.)
Comparison Between 3 Unit Trust Investment Method

250.00%
Percentage (%)

201.00% 201.04%
182.97%
200.00%

150.00%

100.00% 62.26%
32.88%
50.00%

0.00%

Method

MARKET TIMING AND MARKET TIMING AND MARKET TIMING AND

SWITCHING METHOD (Using SWITCHING METHOD (Using SWITCHING METHOD (Using
ISCF and IMMF) IEAF and IMMF) DALI1 and IMMF)
BUY AND HOLD METHOD DOLLAR COST AVERAGING
METHOD

● Comparing the overall performance (within 4 years) of 3 different unit trust investment
method.
● Green bar is the investment performance if invested in CIMB Islamic Small Cap Fund (high
risk) using MTS method.
● Red bar is the investment performance if invested in CIMB Islamic Dali Equity Growth fund14
using MTS method.
 UNIT TRUST INVESTMENT METHOD
PERFORMANCE COMPARISON (cont.)
● COMPOUNDING - The ability of an asset to generate earnings,
which are then reinvested in order to generate their own earnings. In
other words, compounding refers to generating earnings from
previous earnings.
● Comparing effect of compounding on future investment value based
on RM10,000 initial investment within 10 years:
●
Annual
Initial
Method Growth Year 2 Year 4 Year 6 Year 8 Year 10
● investment
rate
●
DCA 7.36% RM10,000 RM11,526 RM13,285 RM15,312 RM17,649 RM20,343
●
B&H 12.86% RM10,000 RM12,737 RM16,224 RM20,665 RM26,322 RM33,527
●

MTS 31.72% RM10,000 RM17,350 RM30,102 RM52,228 RM90,617 RM157,223

●

● As shown above, the compounding effect on investment when using

MTS method is HUGE. In the 10th year, MTS investment value was
8 times the investment value of DCA and 4.7 times the 15
investment value of B&H.
 UNIT TRUST INVESTMENT METHOD
PERFORMANCE COMPARISON (cont.)
Investment Value IEAF(MTS) vs IEAF(NON-MTS)
RM15,000.00

RM13,000.00

2,500.00

RM11,000.00

RM9,000.00

KLCI index
RM

RM7,000.00
1,500.00

RM5,000.00

RM3,000.00

RM1,000.00 500.00

Date

IEAF(MTS) Value IEAF(NON-MTS) KLCI CLOSE

● Comparing the investment value between UT with MTS Method, UT without MTS and KLCI
Index (for reference only.
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 WHAT METHOD TO USE TO
MAXIMISE PROFIT?
● MARKET TIMING AND
SWITCHING METHOD
give the best return
compared to B&H and
DCA.
● The risk is still there
(market fluctuation), but...
● By having EXIT
STRATEGY and
ENTERING STRATEGY to
protect both CAPITAL and
PROFIT we can minimise
and control the risk.
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HOW TO INVEST IN UNIT TRUST

● Cash (bank draft) or EPF withdrawal.

● Minimum investment RM1,000.
● Forms to fill:
Account opening form
Transaction form
Permohonan Pengeluaran Pelaburan Ahli (for EPF
investment)
Pre-Investment form
● Supporting documents:
Photostat of IC (3 copy)
Latest EPF statement (for EPF investment) 18
 FOR FURTHER INFORMATION
● Khairul Arifin bin Selamat
● Stock Trader, Unit Trust Consultant
● Email : ks_blitz@yahoo.com /
ipins.ula@gmail.com
● Handphone : 013-3941239
● Khidmat pelaburan unit trust:
http://unittrust.epinula.com.
● Blog: http://www.epinula.com
● Kaedah Mudah Melabur Dalam Pasaran
Saham: http://www.sistemsaham.com
● Facebook Profile:
http://www.facebook.com/khairularifinselamat
● Facebook Page:
Melabur dalam saham dan unit trust di Malaysia
http://www.facebook.com/epinula

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