Unit trust investment thread

[ahgohgoh]

yeah, i bought from UOB too. At that time my FD was due for renewal so I thought why not give UT a go as it returns better than FD and is more diverse than stocks.

The historical annual yield for this UT was 5% which seem pretty comparable to high yielding stocks. The downside is the large commission of 3.5% which means the first few months of dividends would go towards recuperating the commission. And i'll have to keep my money in this UT long term to get the benefits.

Actually I also just wanted fixed deposit but I'm glad I made the mistake buying the fund coz now I learn something.

Eventually the return will be higher than FD. Question is when...... and is that earlier than next downturn for bonds?

 

[sgbanking]

just to share my 2 cents:

1. initially i built up my fund portfolio using FSM; but the platform fee is becoming stunning high as the capital grows, so i transferred out the funds to other platform (e.g., Philip) with no platform fee (even with some transfer-in rebate)

2. I still keep my RSP with FSM since they charge 0% for RSP

3. I might occasionally use FSM to buy funds since it accepts credit card payment (through DBS/Standard Chartered as i know so far)

4. For some investors who want to 'waive' the sales charge and also don't need to time the market, can do follows:
Set up a RSP in FSM for fund A with amount $, once the RSP is executed, you got the fund A @ 0 sales charge. Then you may terminate that RSP so that it is dead next month.

Happy investing & saving.
sgbanking

 

[wahkao3]

Calm down broseph. The fees is 0.5% per year.

oh 0.5% per year. I thought per month

 

[wahkao3]

My feel: funds are "diversified" because they consist several things.

Stocks are one company, so higher risk?

then diversify yourself loh.
Buy 10 good companies. The broker is not going to charge you extra commission just because you hold many different stocks right?

why need to pay someone to do it?

 

[Keverus]

then diversify yourself loh.
Buy 10 good companies. The broker is not going to charge you extra commission just because you hold many different stocks right?

why need to pay someone to do it?

accessibility.

eg. one bond $250k. you wanna buy 10 bonds?

 

[ahgohgoh]

just to share my 2 cents:

1. initially i built up my fund portfolio using FSM; but the platform fee is becoming stunning high as the capital grows, so i transferred out the funds to other platform (e.g., Philip) with no platform fee (even with some transfer-in rebate)

2. I still keep my RSP with FSM since they charge 0% for RSP

3. I might occasionally use FSM to buy funds since it accepts credit card payment (through DBS/Standard Chartered as i know so far)

4. For some investors who want to 'waive' the sales charge and also don't need to time the market, can do follows:
Set up a RSP in FSM for fund A with amount $, once the RSP is executed, you got the fund A @ 0 sales charge. Then you may terminate that RSP so that it is dead next month.

Happy investing & saving.
sgbanking

Point 4 is very smart. What is the max RSP?

 

[Keverus]

Point 4 is very smart. What is the max RSP?

smart, but surely FSM has thought of it? it's quite an obvious loophole. if FSM left this out....epic fail.

 

[Keverus]

Hi bro, if the fund pays out dividend, is there any charges from phillip unit trust for funds that r transferred in?

Thank you very much for your valuable information.


Best regards
David

Not sure because:

1. I usually prefer equtiies funds that dont distribute dividends
2. If got dividends, I would choose re-invest mode for the power of compounding.

 

[wahkao3]

accessibility.

eg. one bond $250k. you wanna buy 10 bonds?

i wasnt talking about bond, i was talking about stocks
where got stock 1 lot 250k one?

 

[Keverus]

i wasnt talking about bond, i was talking about stocks
where got stock 1 lot 250k one?

UT got bonds, got stocks.

same thing, who got capital to buy hundred of stocks one shot? esp sg ones where u have to buy min 1000 shares.

apply the concept la.

 

[wahkao3]

UT got bonds, got stocks.

same thing, who got capital to buy hundred of stocks one shot? esp sg ones where u have to buy min 1000 shares.

apply the concept la.

SGX also can buy bond, but i never try before

 

[Keverus]

SGX also can buy bond, but i never try before

SGX one bond $250k. UT bond funds no need $250k.

Be it bonds or stocks, UT brings about additional accessibility.

bonds: UT allows you to participate in bonds without having to shelve out $250k for one bond. (some retail bonds may go for cheaper, but still $150k).

stocks: UT gives you accessibility in the sense that you can buy a large basket of stocks.

 

[Keverus]

where got stock 1 lot 250k one?

btw, there is.

and is one share 200k+.

 

[wahkao3]

SGX one bond $250k. UT bond funds no need $250k.

Be it bonds or stocks, UT brings about additional accessibility.

bonds: UT allows you to participate in bonds without having to shelve out $250k for one bond. (some retail bonds may go for cheaper, but still $150k).

stocks: UT gives you accessibility in the sense that you can buy a large basket of stocks.

wa sure or not? SGX 1 bond 250k?

 

[Keverus]

wa sure or not? SGX 1 bond 250k?

no la, cheap cheap like buy toto. $2 can buy riao.

 

[ahgohgoh]

Newbie qn...

In down times (like NOW), should I sell the funds, keep the bullets and wait for everything to hit rock bottom and attack again?

Is it difficult to sell if bought from bank?

 

[wahkao3]

no la, cheap cheap like buy toto. $2 can buy riao.

u bluff chewren sia

 

[wahkao3]

Newbie qn...

In down times (like NOW), should I sell the funds, keep the bullets and wait for everything to hit rock bottom and attack again?

Is it difficult to sell if bought from bank?

sell it away. risk maangement is important.

dont expect the funds to risk manage for you because they cant. dont believe me go and challenge your fund manager to show you their risk management plan.

 

[Keverus]

u bluff chewren sia

i hope u can detect sarcasm...

 

[Keverus]

sell it away. risk maangement is important.

dont expect the funds to risk manage for you because they cant. dont believe me go and challenge your fund manager to show you their risk management plan.

how much u invest? want to speak to the fund manager?