Cashing Out My Entire Public Mutual Fund

Posted by Kris | Wednesday, March 30, 2011 | , | 5 comments »



I just initiated my CASH OUT order to my Public Mutual Fund agent. I want my agent to help me sell all my mutual funds as my funds have already been very profitable especially the Index Fund where I bought in around late 2008 if I am not mistaken for a ~20% gain :)

My view is that the KLCI may not have much room to grow upwards and I am happy with my returns for my slow growing mutual funds. I want to park my money elsewhere. So my agent is very surprised when I initiated my sell call. I actually got questioned on why i want to sell? Here is the main question..Very interesting to know.

Are you planning to become a Mutual Fund agent? Hence you are selling so you can buy unit trust under your own name as buyer and agent? As a lot of my agent client has suddenly become mutual fund agent themselves instead of  buying from my agent (him).

My Answer: NO NO lar..I am too busy with my work to become agent myself(which is the truth, as I am busy with stocks too).

What I wanted To Say But I kept It To Myself Is: I am not that foolish to sell and to buy back under my own name as I will get penalized by another 5.5% load fee when I buy in equity based mutual funds. (Actually load fee is 5.5%-3% = 2.5% , if I am an agent and will be taking in the commissions myself). Furthermore, there is a lot of hidden costs in being a mutual fund agent especially if you don't rake in alot of customers and especially if the sole customer is yourself!!!. Your  annual quota is RM30K for a starter. Not my cup of tea since I don't have a lot of spare time).

Hence, you know that the market for mutual fund agent is very competitive and quite saturated. 7/10 people you know is at one time or another is/was a mutual fund agent. But my agent is smart to realized that, he started a financial consulting agency instead of depending on mutual fund sales.


How to know your unit trust agent is real?
How Much You Make As An Mutual Fund Agent
Cimbclicks einvest service charge only at 2%


5 comments

  1. ChampDog // 12:10 AM  

    KLCI is moving downtrend?

  2. ChampDog // 12:11 AM  

    Btw, what do you plan to do with that money? Buy house? :)

  3. Kris // 6:01 PM  

    @ChampDog,
    I cannot time the market. So I want to cash out my profit.

    I am not sure yet what to do with my money. I will park it into my flexi loan account first :P

  4. Michael Tsen // 1:22 PM  

    true once u stock like a fund manager, its hard to go back to mutual fund. But I still keep DCA running with one or two funds and keep all the 'accounts' separate. That way, even if one day kena gao gao in stock market the worst I can become is a 'normal' mutual fund guy :D

  5. Kris // 1:36 PM  

    Mutual fund tends to be for a longer time horizon for it to bear fruit. :P