Mutual Funds/ Unit Trusts vs "Main" Shares

Okay, investment mane lg bagus? and lg kurang risiko? mutual funds kerr.. main shares? Okay dlm post nie kite discuss dulu benefits yg kite leh dpt from mutual funds. If aku nak compare due2 skang, x tdo lar aku mlm nie. huhu...

To begin with, mutual funDs and unit trust same. Hehe.. ade org still confuse pasal due2 investement nie. Aku pun dulu confuse gak mule2. Basically dlm unit trust korang bg duit korang kat someone, diorg manage and diorg decide ape investment terbaik. Normally mutual funds nyer portfolio investment ade shares, bonds, properties, commodities, and etc. The main objective is to diversify (mksudnyer mempelbagaikan) korang nyer investment.



Sape yg x paham or still x clear, camnie mechanism dieq..

Lets say Bank X bukak satu mutual funds investment nie. Duit yg dieq dpt drpd investors diorg invest dlm 1000 company kat China. Harge satu unit mutual funds, Bank X yg tentukan. Harge tu bergantung pd overall performaance 1000 company kat China tu.

Duit korang --> invest, --> Bank X --> invest --> dlm 1000 company kat China.

Secare tidak langsung kite leh ckp yg korang actually invest dlm Bank X, and Bank X yg invest dlm macam2 investment kat China.

Hopefully korang paham. Jgn bertambah pening lak.

Biase nyer, funds manager yg promote mutual funds akan cakap "dun put all your eggs in one basket". Nie ayat buku text aku. Maksud nyer, jgn invest duit ko dlm satu company jeq. Logically btul ar tu. Lets say if satu basket ilang, kne curi ker, or rosak ker, korang ade basket lain. Kire bahase kasar nyer.. overall risks dlm investment korang leh diminimumkan.

Diversification dpt meminimumkan overall unsystematic risk (risiko yg ade pade setiap individual company or industry). Contoh nyer, kite main share, and kite bli share dlm satu biotechnology company nie. Katakanlah, company nie project R&D diorang gagal. So, diorng mmg rugi gilerrr. So, if korang invest dlm satu company jeq, mmg investment korang pun gagal larr. Tp lets say korang ade share dlm 1000 biotech company, maybe dlm 1000 tu.. ade 500 yg wat untung besar, 300 company x untung, and 200 rugi.. korang xde lar rugi sgt.

So, basically, mutual funds meminimumkan unsystematic risk. slalu nyer mutual funds invest dlm beratus-ratus or beribu-ribu company dlm pelbagai industry (biotech, automotive, food and beverages, etc).




If nak compare dengan main shares kat stock exhange, nak invest dlm byk2 company sgt2 lar mahal bcoz of transaction costs (e.g. brokerage fee). Mmg xde minimum amount if nak invest kat share market. Korang leh invest $1000, $100,$50, depending brape harge satu share. Tp kdg2 brokerage fee pun dah $60. so if korang nak invest dlm 5 company, brokerage fee dah $300.

Okay tu baru brokerage fee time nak bli shares, time nak jual nanti.. skali lg kne byr $300. If nak jual time rugi pun still kne byr $300. Meaning, lets say korang bli shares kat satu company nie, harge 50sen. Time nak jual, harge dieq 30sen. Walaupun rugi jual time tu korang still kne bayar brokerage fee $60. So, dengan duit yg terhad, dan disebabkan transaction costs, korang leh invest dlm beberape company jer.

Aku ingat lg mase first time aku jumpe broker aku (Feb thn lepas)... mase to aku ade $750. aku dengan yakin kate kat dieq "give me your best 5 picks". Pastu aku ckp kat dieq aku nak invest dlm sume company tu. Ye ar.. kate bljar kat class kne diversify investment. Korang tau, dieq gelak kat aku. Dieq tanye mane aku blajar nie? Dieq kate ngan duit aku yg x byk maner tu, better invest dlm satu company jeq. From economics point of view, makes sense gak ape dieq ckp tu..

Brokerage fee $60.
Sebab aku main share kat Australian market kne bayar lg $15.
Total = $75.
$75/$750 = 10%.
Tu baru nak bli shares, nak jual kne byr lg $75.
So, total cost actually, 20%.
Makne nyer, harge share yg aku bli kne naik at least 20%, utk cover brokerage fees.

Lets say aku invest $750 equally dlm 3 company lak...

$750/3 = $250
$75/250 = 30%
$30%x2 = 60%

So, share dlm setiap company tu kne at least appreciate 60% utk cover brokerage fees. Wow ingat sennag ker nak appreciate 60%??? Makne nyer, for example, if harge share tu naik from 30 cent to 50cent (66.7%) aku baru untung dlm roughly 7%, which is $17.50. If it takes 6 months to appreciate from 30 cent to 50 cent, berbaloi ker tunggu 6 bulan utk dpt $17.50. Mintak mak aku lg bagus... haha

If aku letak $750 dlm mutual funds yg kite bincang tadi, automatically dah diinvest dlm 1000 company ka china. so, mmg dah diversify lar... takyah byr transaction costs yg besar dan membebankan tu.

So skrang korang dah tau benefit mutual funds. so korang rase maner lg bagus?
Maybe skang korang pk mutual funds better drpd main share. Okays, xpe2.. korag pk dulu... dlm next post aku nak explain knape aku mmg CUKUP X SKE mutual funds.

Lg pun aku rase mutual funds JAUH LEBIH RISIKO drpd main share kat stock exchange.