Feel Good Funds

Recently I was informed that Public Mutual will launch 2 new funds in the month of April, namely Public China Titans Fund(w0w! Sounds really gigantic) and Public Islamic Optimal Growth Fund. The former will be available from 1st April (Aprils Fools Day), while the latter from 8th April.

The Selling Point
When I heard of the brief intro of these 2 funds, I was really impressed. I shall start with the Public China Titans Fund 1st. The strategy of this fund is to invest in Big Cap counter in China, and the Big Cap is really BIG, with market capitalization of over RM10 billion. While in recent time, people are saying the China market has heated too much, and the market there is going to burst, while some point to the poor performance, thus far, of the funds investing in China. Frankly speaking I agree with both these opinions, but I can point out how this fund is different.

Size Does Matter!
Today, the biggest bank in the world is no more Citibank or banks in the US. The biggest bank today belongs to China's Industrial and Commercial Bank of China Limited (ICBC), with market capitalization of US$254billion.

http://en.wikipedia.org/wiki/Industrial_and_Commercial_Bank_of_China

Besides ICBC, there are a big number of Big Cap companies in China who is already making their presence felt. China Mobile, which is the largest mobile operator in the world by subscribers. Other notable companies include Sinopec, China National Petroleum, China Construction Bank, and finally Asia's Richest man, Li Ka-shing's Hutchinson Whampoa.

While you may say that the bubble is going to burst (in fact Li himself also mentioned before), these Big Cap companies, will only get bigger as they possess a very huge domestic market and cash rich.

High Dividend Yield + Growth
The 2nd fund, Public Islamic Optimal Growth Fund strategy is to invest in high dividend yield and growth stocks. This is actually a nice balance to the investor as growth stocks offer higher profit but more volatile, while high dividend yielding company normally grow at a slower pace. With the combination of both, investors can maintain their dividend yield, while there are possibility of fast growing companies in the portfolio, which bring about higher profit. Perfect match!

Now let us look forward to their official launch of the funds!