Public Mutual(Old System Vs New System)

There have been quite a few people got confused by the Public Mutual offer for the newly launched funds. 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 RM10k 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
= RM10,000 * 0.0545
= RM545

Total payable amount = Investment amount in PFEPRF + Total service charge incurred
= RM10,000 + RM545
= RM10,545.00

Number of units = Effective Investment amount/NAV per unit
= RM10,000/RM0.25
= 40,000 units

Case B:
Investment RM10k inclusive of initial service charge(5.45%).

Effective investment amount = Total Paid Amount/(1+service charge)
= RM10,000/(1+0.0545)
= RM9483.17

Number of units = Effective investment amount/NAV per unit
= RM9483.17/RM0.25
= 37932.68 units

Effective investment amount = Total NAV
= NAV per unit * Number of units