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Which fund is better and at what price to buy?

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  1. #71

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    Quote Originally Posted by wanda siu
    I once considered bond ETF and index fund in the stock market but they are so volatile that is easy to lose money. Bond fund appears to be a viable option that has a decent yield with the NAV changes within a narrow range.

    HK0000221389 and I am looking for a 8% yield.
    i really suggest you just go for fixed deposits, if you cannot read the irony in your two statements in the current market.. good luck....

  2. #72

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    The fixed deposit rate for AUD is very low (around 0.6-1%). And therefore, the alternative is to buy a bond fund that has a higher yield (between 8 to 10%).


  3. #73

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    Quote Originally Posted by wanda siu
    The fixed deposit rate for AUD is very low (around 0.6-1%). And therefore, the alternative is to buy a bond fund that has a higher yield (between 8 to 10%).
    Look I have zero knowledge but you somehow seem to have less than me. Until you know what you are doing or have done some reading then get professional advice or stay very simple.
    pin likes this.

  4. #74
    bdw
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    Quote Originally Posted by shri
    I am assuming that is 3141.

    Here's a basic comparison which might highlight some of the issues being discussed.

    I'll leave it to someone with a better set of tools to highlight the total return of the two over say a 5 year period.

    Attachment 78996
    Shri, 3141 is bonds, ALLGAME is equities. So I am not sure how useful this graph is.

    Also over 5 years as you did is not that favourable to ALLGAME. But over 3 years looks quite different. Again, this just supports my earlier point that you can pick whatever date range you want to support whatever argument you want to make.

  5. #75

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    Quote Originally Posted by bdw
    Shri, 3141 is bonds, ALLGAME is equities. So I am not sure how useful this graph is.

    Also over 5 years as you did is not that favourable to ALLGAME. But over 3 years looks quite different. Again, this just supports my earlier point that you can pick whatever date range you want to support whatever argument you want to make.
    Yes, I know they're two diff things, but the bond fund was what she lost cash on due to "fluctuations" and the other one is what she wants to put money into for yeild. Was just trying to highlight the road both of them took.

    I tend to look at the longest possible chart I can find - ideally through 1 or 2 serious downturns in the market.

    I have no opinion on either the fund or the ETF in that chart.

  6. #76
    bdw
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    Regarding fees, yes funds have 1% upfront purchase fee, but they have no selling fee. In comparision, if you are buying regular stocks, ETF, etc, they normally have brokerage fees around 0.3% on both buy and sell side, so total 0.6%. So yes funds have higher entrance/exit fees in total, but not a huge difference.

    Also for ongoing fees, yes funds have around 1% to 1.5%, but ETF's etc also have fees, for 3141 is 0.35%.

    Also something else to consider. Every time I receive a dividend from stocks/ETF's, I have to pay $30 dividend handling fee or whatever it is. With funds, there are zero fees here. So if I invest $1m in 10 different stocks paying 5% dividend twice a year, I receive $50,000 dividend per year but have to pay fees $600 which is 1.2% of my dividend in fees. If I buy $1m in funds, I get my $50,000 dividend with no fees. So there you go, something where funds actually have lower fees than stocks/ETF's!!

    As I said before, I have a bit of everything and I can see the pro's and con's of all.

    wanda siu and stanleystanley like this.

  7. #77

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    Quote Originally Posted by bdw
    Regarding fees, yes funds have 1% upfront purchase fee, but they have no selling fee. In comparision, if you are buying regular stocks, ETF, etc, they normally have brokerage fees around 0.3% on both buy and sell side, so total 0.6%. So yes funds have higher entrance/exit fees in total, but not a huge difference.

    Also for ongoing fees, yes funds have around 1% to 1.5%, but ETF's etc also have fees, for 3141 is 0.35%.

    Also something else to consider. Every time I receive a dividend from stocks/ETF's, I have to pay $30 dividend handling fee or whatever it is. With funds, there are zero fees here. So if I invest $1m in 10 different stocks paying 5% dividend twice a year, I receive $50,000 dividend per year but have to pay fees $600 which is 1.2% of my dividend in fees. If I buy $1m in funds, I get my $50,000 dividend with no fees. So there you go, something where funds actually have lower fees than stocks/ETF's!!

    As I said before, I have a bit of everything and I can see the pro's and con's of all.
    Apart from the leveraging you receive from the mutual funds, lets not kid ourselves, there are no pros to the consumer for HK issued mutual funds. The only pros are to the banks and the fund managers whoa are laughing all the way to the bank with the fees they are collecting from the unsuspecting consumer.

  8. #78

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    technically you can get leverage for ETFs as well... check with the bankers... i am sure the private banks allow that..


  9. #79

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    Quote Originally Posted by bdw
    Regarding fees, yes funds have 1% upfront purchase fee, but they have no selling fee. In comparision, if you are buying regular stocks, ETF, etc, they normally have brokerage fees around 0.3% on both buy and sell side, so total 0.6%. So yes funds have higher entrance/exit fees in total, but not a huge difference.

    Also for ongoing fees, yes funds have around 1% to 1.5%, but ETF's etc also have fees, for 3141 is 0.35%.

    Also something else to consider. Every time I receive a dividend from stocks/ETF's, I have to pay $30 dividend handling fee or whatever it is. With funds, there are zero fees here. So if I invest $1m in 10 different stocks paying 5% dividend twice a year, I receive $50,000 dividend per year but have to pay fees $600 which is 1.2% of my dividend in fees. If I buy $1m in funds, I get my $50,000 dividend with no fees. So there you go, something where funds actually have lower fees than stocks/ETF's!!

    As I said before, I have a bit of everything and I can see the pro's and con's of all.
    Don't forget the annual management fee for funds. Those are far more important and detrimentalnto returns than an entrance fee.

    Also, on returns funds will always, on average, look better on shorter time frames and worse and worse the longer you compare them to passive. That's the impact of fee's and one part of why ALLGAME looks less bad over three compared to five years. Once it huts ten years it will look even worse.

  10. #80

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    I had Value Partner High Yield Bond Fund. I wonder when to sell as the market is kind of unclear in China. If I sell this fund what should I buy? Please give some advice.


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