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Dividend Gladness
plaintalk 21-10-2016, 07:22:58 PM


Joined Date: 21-10-2016
Posts: 4 times





Asriel :
Hi Everyone,

How do you feel when you received news that your invested fund is going to distribute dividend? Do you feel happy or just so so.. nothing to be gladful about...? Because knowing that your invested fund price is going to be diluted for a while right after the ex-date and the profit of your investment will go down accordingly for awhile as well.

Until the time your fund is added with the dividend, your profit % will go back to your original level. You will only see the total amount of your units have increased but not the overall profit.

Has anyone taken noticed about this issue and analyze about it?

I just wonder how has the dividend exercise really benefited us as investors or just benefited the Fund House itself? Anyone has any opinion?


no real benefit, some psy benefit may be.

but i like to ask how does the fund manager decide whether to give or not to give dividend.
is it something predetermined earlier when they started the fund?
or something FM can simply decide whenever they wish to give dividends?

I mean how come certain UT gives dividend and some dont? Gives dividend means the UT must have surplus, ie making profits?

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Markky 21-10-2016, 08:14:12 PM


Joined Date: 29-10-2012
Posts: 3 times




You are right !

In unit trust, the dividend given out is meaningless because they readjust the price downward in accordance to the amount of dividend given out.

The more the dividend, the lower the price on ex-day.

Guess the only benefit is that now you can buy the units at a cheaper rate.
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Asriel 25-02-2017, 08:46:55 PM



Joined Date: 06-12-2012
Posts: 61 times





Markky :
You are right !

In unit trust, the dividend given out is meaningless because they readjust the price downward in accordance to the amount of dividend given out.

The more the dividend, the lower the price on ex-day.

Guess the only benefit is that now you can buy the units at a cheaper rate.


I'm glad that you have finally get our ideas. Time, experience and analytical thinking do really help in this case. You are right... the only benefit is buying at cheaper rate. But this benefit doesn't apply to us who are more experienced but apply only to novice investors who thought like buying vegetable in the market.

To be frank, I sometimes don't really like dividend declaration, especially for cases where I am planning to do switching. It hinders my timing to do switching. Once entering ex-date, my fund will be frozen for at least 2-3 weeks until dividends are added into my fund.
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Asriel 27-06-2017, 12:25:18 PM



Joined Date: 06-12-2012
Posts: 61 times




FSM team has finally written an excellent and honest article on the topic we discussed here. If whoever missed it... you may read it here... https://www.fundsupermart.com.my/main/research/-View-Idea-of-the-Week-2-Big-Mistakes-Investors-Make-in-Unit-Trust-Investments-23-June-2017--8510
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gen05 27-06-2017, 09:59:45 PM



Joined Date: 03-06-2009
Posts: 143 times




Which is why FSM had the dividend reinvestment on every funds. But as some pointed it out, it locks in potential transactions during the distribution period. Problem.

A good fund is a good fund regardless of whether they distribute or not. Distribution is the last thing i looked at when performing analysis.
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