Risk in unit trust

[smurfzzz]

unit trust , etf are all diversified either by sector or by companies.
Mainly created by fund houses to pay salaries of fund managers.

You're better off cutting away the middleman and learn how to invest in stocks.

For newbies, is it more convenient to go with Unit trust with professionals to make the right investment?

 

[yuzu28]

For newbies, is it more convenient to go with Unit trust with professionals to make the right investment?

Maybe not? My own experience tells me that many times, it is based on the timing u enter.

Also, what type of professionals u talk to? Portfolio too small, I think these professionals only keen to quickly close a deal with u to earn the commission, and that timing maybe an all time high price. my thoughts only, no basis one.

 

[celtosaxon]

Can you explain more why investment linked insurance product are worse?

Higher fees for one, many of which are often buried/hidden — and it’s not just fees being charged for the investment, but usually there are also early termination fees. The underlying investment itself may also be worse performing, depending on how the portfolio is constructed and managed. I would almost go so far as to say that no reputable investment advisor is going to recommend investment linked insurance products — sorry to say this, but about the only reason anyone would recommend them is to make a nice juicy sales commission for themselves.

 

[weekee1980]

But i think u maybe missing out a point... Same underlying funds also dun mean same % for each component.

Info for TS...
I didn't study ETF well enough, but I realise that UT normally will have a small % of cash component. Also, under one UT, they can have hedged and unhedged version. Acc and Dis performance also slightly different too at different timing.

What the different between hedged and unhedged version?
Which one is better?

 

[yuzu28]

What the different between hedged and unhedged version?
Which one is better?

I was told by some financial experts that hedged ones are better. I think is hedged against currency fluctuation or what. But it can also fail? Recently got this Chinese guy saga on hedged fund i think... Cant remember his name.

 

[weekee1980]

Can you explain more why investment linked insurance product are worse?

Pls share with us more why investment linked insurance product are worse?

 

[hwmook]

For newbies, is it more convenient to go with Unit trust with professionals to make the right investment?

Actually no, ETF is like hawker centre food, cheap and fill your stomach. Unit trust are like restaurants food, more exotic but also more expensive. If you just want to fill your stomach then just buy ETF. If you feel like having more exotic food to fill your stomach then buy unit trusts. Exotic food doesn't mean its better in term of filling your stomach. It might taste better or it might not.

 

[reddevil0728]

Can you explain more why investment linked insurance product are worse?

Pls share with us more why investment linked insurance product are worse?

If you can buy the UT directly, why pay more to buy UT via insurance?

 

[reddevil0728]

For newbies, is it more convenient to go with Unit trust with professionals to make the right investment?

Etf also by professionals what

 

[reddevil0728]

I was told by some financial experts that hedged ones are better. I think is hedged against currency fluctuation or what. But it can also fail? Recently got this Chinese guy saga on hedged fund i think... Cant remember his name.

Cost money to hedge also, so the fees charged might be higher

 

[reddevil0728]

Actually no, ETF is like hawker centre food, cheap and fill your stomach. Unit trust are like restaurants food, more exotic but also more expensive. If you just want to fill your stomach then just buy ETF. If you feel like having more exotic food to fill your stomach then buy unit trusts. Exotic food doesn't mean its better in term of filling your stomach. It might taste better or it might not.

Actually can be like both sell chicken rice. Etf is like hawker centre chicken rice.

ut is like chatterbox chicken rice.

 

[skpuppy]

Actually can be like both sell chicken rice. Etf is like hawker centre chicken rice.

ut is like chatterbox chicken rice.

If I were to bluntly put it. Etf generally tracks an index or a sector or thematic whatever you call it. Why ppl invest in unit trust? Because some fund managers can invest in equities and can beat the index. Actually not difficult to beat index but many funds have constraints hence always fail to beat index. After deducting the high cost, you lugi more so in the end, many ppl prefer to invest in index

 

[reddevil0728]

If I were to bluntly put it. Etf generally tracks an index or a sector or thematic whatever you call it. Why ppl invest in unit trust? Because some fund managers can invest in equities and can beat the index. Actually not difficult to beat index but many funds have constraints hence always fail to beat index. After deducting the high cost, you lugi more so in the end, many ppl prefer to invest in index

There’s such thing as active etf

 

[yuzu28]

Cost money to hedge also, so the fees charged might be higher

Expense ratio same if u comparing the same UT with hedged and no hedge. It's a matter how they hedge I think.

 

[skpuppy]

There’s such thing as active etf

Yes. Mostly passive right? Apart from ark invest?

 

[yuzu28]

If I were to bluntly put it. Etf generally tracks an index or a sector or thematic whatever you call it. Why ppl invest in unit trust? Because some fund managers can invest in equities and can beat the index. Actually not difficult to beat index but many funds have constraints hence always fail to beat index. After deducting the high cost, you lugi more so in the end, many ppl prefer to invest in index

Maybe you are right. But guess it's about what one wants to have, and convenience? There are also balanced funds with different types of investment, bonds, treasury notes etc mixed with equities. Not very familiar with ETFs but mutual funds have lots of different permutations, fund house also need business

 

[yuzu28]

Actually no, ETF is like hawker centre food, cheap and fill your stomach. Unit trust are like restaurants food, more exotic but also more expensive. If you just want to fill your stomach then just buy ETF. If you feel like having more exotic food to fill your stomach then buy unit trusts. Exotic food doesn't mean its better in term of filling your stomach. It might taste better or it might not.

I like ur analogy.

 

[reddevil0728]

Yes. Mostly passive right? Apart from ark invest?

Yea but is not etf = passive.

there are also other active etfs

 

[skpuppy]

Maybe you are right. But guess it's about what one wants to have, and convenience? There are also balanced funds with different types of investment, bonds, treasury notes etc mixed with equities. Not very familiar with ETFs but mutual funds have lots of different permutations, fund house also need business

Got some fund house solid one. Like Baillie Gifford, Berkshire, dimensions fund, ark invest, UOB interesting ok for some of its funds. OCBC is a jinx. You can see most of their funds underperform the index. Even their hang Seng tech and China leader etf performs like ****. If tomorrow they come out with a US or Global etf, maybe the etf also tio curse. Lol!

 

[yuzu28]

Got some fund house solid one. Like Baillie Gifford, Berkshire, dimensions fund, ark invest, UOB interesting ok for some of its funds. OCBC is a jinx. You can see most of their funds underperform the index. Even their hang Seng tech and China leader etf performs like ****. If tomorrow they come out with a US or Global etf, maybe the etf also tio curse. Lol!

I heard lionglobal not good but i got buy hst and yyy.. also the all seasons fund.

Actually uob united also not that good for some of its funds... Another one I dun like is Fullerton.