Public Mutual - Launches Public Far East Telco & Infrastructure Fund (PFETIF)

Written on July 21, 2008 – 9:44 pm | by Kampung Boy |

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Public Mutual, a wholly own subsidiary of Public Bank will be launching another new fund named - Public Far-East Telco & Infrastructure Fund (PFETIF).

Let me share some basic information about this fund before stating my points of view…

Q. What kind of fund?
A. Equity Fund

Q. Risk Profile for this fund?
A. Aggressive and High Risk

Q. When is the launch date?
A. 8 July 2008

Q. Promotional Period?
A. 8 July 2008 - 28 July 2008

Q. What do i enjoy during promotional period?
A. Offering service charge of 5% (usual is 5.5%) and DDI at 5.25% (usual is 5.5%)

Q. Expected return time frame?
A. 3 to 5 years

Q. Where will they invest my precious money ($$$)?
A. Regional markets which include China, Taiwan, Hong Kong, Japan, South Korea, Malaysia, Singapore, Thailand, Indonesia and the Philippines

Q. Which sector they will invest my money in?
A. Telecommunications, construction, building materials, expressways, transportation, water works and utilities

Here is my 2 cents on this newly launch fund:-

Q. Beauty of PFETIF?
A. Fund that specifies interesting sectors to invest on such as Telecommunications and building materials which still have potential for growth

Q. Beast of PFETIF?
A. Aiyoh, wrong timing man. Now most Malaysian must ubah gaya hidup. Money not enough to use, still got enough to invest?

Q. So, can invest or not?
A. For those having excessive cash can invest. I really mean excessive…

Q. I have excessive cash how should i invest?
A. My 2 cents tells me that it is better for you to invest on a regular saving (Direct Debit Instruction) rather then a lump sum investment on this newly launch fund.

Q. Why Direct Debit Instruction (DDI)?
A. Minimize your risk during such bear and slow market situations. You wouldn’t want to see your money becomes substantially lesser in no time

Q. Expected return time frame?
A. If i know then hoseh(Rich) already as never time the market. I wouldn’t really know exactly when but might take longer then 3 to 5 years

I’ll give an example of calculation on how to do Direct Debit (DDI) if you have an excessive cash of RM 10000:-

As i have mentioned earlier, it’s not wise to invest lump sum now in such uncertain market situations. It’s like a falling knife and you are like catching a falling knife. Never catch a falling knife as it will hurt you badly.

With the excessive cash of RM 10000 don’t invest all in one go during such times. Let’s take that we expect the market to recover in 5 years (X)…
* (X) can be any value

5 years (X) = 60 months
Excessive cash = RM 10000
To start an account with a new fund like PFETIF (Initial investment) = RM 1000
So,
RM (10000-1000) = RM 9000
With the RM 9000 balance, spread it to 60 months which is,
RM 9000/60 = RM 150

Over the period of 5 years (X),

Amount to invest : RM 10000
Amount can be invested monthly: RM 150

Seek your mutual funds agent to get more insight on this method as my 2 cents tell me this is the best method to invest in bear market.

So whether this fund can be invested i would say Yes and No. Yes for DDI and No to lump sum but the final call on whether to invest or not still depend on you.

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