either market up or down, the ROI as calculated as below;

this calculation without service charge, for u better understanding.

example 1, MARKET UPTREND.

if u buy fund A on 2/1/2010 at price RM0.25 and u invest RM10,000.

ur total unit will be RM10,000 / RM0.25 = 40,000 units.

let say on 31/12/2010 the price increase to RM0.30.

ur unit trust value is RM0.30 x 40,000 units

= RM12,000

ur actual ROI is RM12,000 - RM10,000 = RM2,000

which is 20%.

let say the fund manager declared distribution RM0.02 per units for FYE 2010,

so u will get RM0.02 x 40,000 units

= RM800 as distribution from ur investment value.(RM12,000)

after the distribution payout, ur investment value will be RM12,000 - RM800 = RM11,200

but ur units remain same as 40,000 with investment value RM11,200.

example 2, MARKET DOWNTREND.

if u buy fund B on 2/1/2010 at price RM0.25 and u invest RM10,000.

ur total unit will be RM10,000 / RM0.25 = 40,000 units.

let say on 31/12/2010 the price GOES DOWN to RM0.20.

ur unit trust value is RM0.20 x 40,000 units

= RM8,000

ur actual ROI is RM10,000 - RM8,000 = - RM2,000

which is - 20%.

let say the fund manager still declared distribution RM0.005 per units for FYE 2010,

ITS DEPENDS THE DISTRIBUTION POLICY, ANNUAL INCOME OR INCIDENTAL POLICY.

so u will get RM0.005x 40,000 units

= RM200 as distribution from ur investment value.(RM8,000)

after the distribution payout, ur investment value will be RM8,000 - RM200 = RM7,200

but ur units remain same as 40,000 with investment value RM7,200.

rgrds,

RREMY,

unit trust consultant,

Public Mutual Berhad.

kparam77@yahoo.com

017-8735029