Public Mutual Old System Vs New System
There have been quite a few people get confused by the Public Mutual new system. Yes the calculation is slightly different now. So which calculation actually benefit the investors more ? The answer is…
*People who get used to previous system can refer to Case B.
Case A:Assume that investor would like to invest MYR 10k into PFEPRF during offer period excluding service charge which the NAV is RM0.25 and the service charge is 5.45%.
Service charge 5.45% = 0.0545
Total service charge = Effective Investment amount * Service charge
= MYR 10,000 * 0.0545
= MYR 545
Total payable amount = Investment amount in PFEPRF + Total service charge incurred
= MYR 10,000 + MYR 545
= MYR 10,545.00
Number of units = Effective Investment amount/NAV per unit
= MYR 10,000/RM0.25
= 40,000 units
Case B:
Investment MYR 10k inclusive of initial service charge(5.45%).
Effective investment amount = Total Paid Amount/(1+service charge)
= MYR 10,000/(1+0.0545)
= MYR 9483.17
Number of units = Effective investment amount/NAV per unit
= MYR 9483.17/MYR 0.25
= 37932.68 units
Effective investment amount = Total NAV
= NAV per unit * Number of units
February 13th, 2008 at 1:10 pm
Thanks for the nice read, keep up the interesting posts.