tag:blogger.com,1999:blog-3959293649573661379.post8587920498516636280..comments2023-08-23T15:29:29.353+08:00Comments on Financial Freedom ~looking forward to a brighter future~: Dollar-Cost Averaging PrincipleUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3959293649573661379.post-28073860778238130082007-07-30T15:39:00.000+08:002007-07-30T15:39:00.000+08:00If you were to invest lump sum, the estimate retur...If you were to invest lump sum, the estimate return will be slightly more due to the market uptrend. But we must always consider this; Do we have that amount of money during that time? Do we know what will happen in the future? What if the market goes downtrend instead? <BR/><BR/>Your investment will be something similar to this:<BR/><BR/>Example 2<BR/>========<BR/><BR/>Public Islamic Asia Dividend Fund (PIADF)<BR/><BR/>——————————————–<BR/><BR/>At 03/04/07, NAV price is RM0.2347.<BR/><BR/>Amount Paid : RM 3,000.00<BR/>Sales Charge (6.49%): RM 183.60<BR/>Amount Invested : RM 2,816.40<BR/><BR/>Price (RM) : 0.2347<BR/>Units : 12,000<BR/>Total Cum Cost (RM) : 3,000.00<BR/>Avg Cost Per Unit (RM) : 0.2500<BR/><BR/>But because of promotional period (offer 1% free units):<BR/><BR/>Units : 12,000 + 1% = 12,120<BR/>Total Cum Cost (RM) : 2,000.00<BR/>Avg Cost Per Unit (RM) : 3,000 / 12,120 = 0.2475<BR/><BR/>At 27/07/07, NAV price is RM0.2496.<BR/><BR/>Units : 12,120<BR/>Price (RM) : 0.2496<BR/>Amount Redeemed/Repurchase (RM) : 3,025.15<BR/>Profit = RM3,025.15 - RM3,000<BR/>= RM25.15<BR/><BR/>Simple Estimate Return : 0.84%Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3959293649573661379.post-73477139836721908152007-07-30T15:14:00.000+08:002007-07-30T15:14:00.000+08:00Refering to comment at Irwan’s Blog :http://www.ir...Refering to comment at Irwan’s Blog :<BR/>http://www.irwan.biz/dramatization-dollar-cost-averaging/#comment-42432<BR/><BR/>Quote from norisa:<BR/>“So how could I calculate my profit since I have invested RM2,000 (during the launching period where I got 80 free units so total units 8080 units) then starting 8 june I start my S.I. every month RM500.”<BR/><BR/>Example 1<BR/>========<BR/><BR/>Public Islamic Asia Dividend Fund (PIADF)<BR/><BR/>——————————————–<BR/><BR/>At 03/04/07, NAV price is RM0.2347.<BR/><BR/>Amount Paid : RM 2,000.00<BR/>Sales Charge (6.49%): RM 122.40<BR/>Amount Invested : RM 1,877.60<BR/><BR/>Price (RM) : 0.2347<BR/>Units : 8,000<BR/>Total Cum Cost (RM) : 2,000.00<BR/>Avg Cost Per Unit (RM) : 0.2500<BR/><BR/>But because of promotional period (offer 1% free units):<BR/><BR/>Units : 8,000 + 1% = 8080<BR/>Total Cum Cost (RM) : 2,000.00<BR/>Avg Cost Per Unit (RM) : 2,000 / 8080 = 0.2475<BR/><BR/>At 08/06/07, NAV price is RM0.2397.<BR/><BR/>Units (07/06/07) : 8080<BR/>Additional Investment : RM500.00<BR/>Sales Charge (6.49%): RM 30.55<BR/>Amount Invested : RM 469.45<BR/><BR/>Price (RM) : 0.2397<BR/>Units : 1,958.48<BR/>Cost (RM) : 500.00<BR/>Avg Cost Per Unit (RM) : 0.2553<BR/><BR/>Balance units : 10,038.48<BR/>Total Cum Cost (RM) : 2,500.00<BR/>Avg Cost Per Unit (RM) : 0.2490<BR/><BR/>At 09/07/07, NAV price is RM0.2552.<BR/><BR/>Units (08/07/07) : 10,038.48<BR/>Additional Investment : RM500.00<BR/>Sales Charge (6.49%): RM 30.54<BR/>Amount Invested : RM 469.46<BR/><BR/>Price (RM) : 0.2552<BR/>Units : 1,839.59<BR/>Cost (RM) : 500.00<BR/>Avg Cost Per Unit (RM) : 0.2718<BR/><BR/>Balance units : 11,878.07<BR/>Total Cum Cost (RM) : 3,000.00<BR/>Avg Cost Per Unit (RM) : 0.2526<BR/><BR/>At 27/07/07, NAV price is RM0.2496.<BR/><BR/>Units : 11,878.07<BR/>Price (RM) : 0.2496<BR/>Amount Redeemed/Repurchase (RM) : 2,964.77<BR/>Profit = RM2,964.77 - RM3,000<BR/>= -RM35.23<BR/><BR/>Simple Estimate Return : -1.17%Anonymousnoreply@blogger.com