Unit Trust

[sohguanh]

The sgd version is the hedged version. Does this equate to less risk in terms of currency fluctuations?

I find unit trust not as straight forward, due to different variations available

From FSM it mention below. If you find unit trust aka mutual fund not so straight forward then don't invest. Invest when you are comfortable. It seems you are not comfortable so then don't invest try other investment instruments then.

"By adopting a SGD-hedged class of the fund, you can lower your risk of a weakening of the EUR against the SGD eroding your investment returns from the European credit market"

https://secure.fundsupermart.com/fs...differences-between-the-various-share-classes

 

[s0crates]

Fundsmith equity.

Hedging works really poorly for equities relative to fixed income. There is no certainty of investment returns and you will end up over or under hedging.

You are effectively taking a currency bet that you have no control of. I don't believe that fundsmith offering is that compelling for you to go against the rules of good investment.

 

[sohguanh]

Anyone highest equities investment returns for the year 2023 so far is?

For me is Japan , Latin America. ETF EWJ ILF. Mutual fund BGF Latin American , Eastspring Japan , LG Japan.

US individual stock MSFT AAPL is second as I am late in direct US stock trading.

 

[blurpandasg2014]

Anyone highest equities investment returns for the year 2023 so far is?

For me is Japan , Latin America. ETF EWJ ILF. Mutual fund BGF Latin American , Eastspring Japan , LG Japan.

US individual stock MSFT AAPL is second as I am late in direct US stock trading.

Rich. Japan huat ah

 

[sohguanh]

Rich. Japan huat ah

Yes. My diversification pay off. If you buy those world ETF or mutual fund it has too high a weigtage on US stocks IMHO. That is why to me world should be each country (or at least region) stocks and then combine as one. Maybe I am weird in my definition of world but that is just me.

Latin American also has a high run up recently but looking back at the past history not sure a sharp pullback is going to happen soon.

 

[sohguanh]

The past month or so equities run up have let me a chance to see which unit trust pick up fastest. So now I am starting to believe the old FSM forum (now extinct and yes FSM has their own forums last time) reader who share his view on unit trust with high expense ratio. His take is suppose a unit trust is imposing a high expense ratio but it can perform much better so it may not be wrong to invest in despite the higher expense ratio. A low expense ratio unit trust look nice on paper and you feel pay the lowest fees but if it is slow to perform is ok? Think no right or wrong depending on each investor opinion.

Of cuz the standard disclaimer always apply current performance is not an indication of it's future performance.

 

[tangent314]

TLDR:

1. A small handful of unit trust can occasionally beat the index
2. We have no idea which unit trusts these will be
3. Therefore, it is not wrong to bet on unit trusts

I think any rational person here can see there is a problem with point #3

 

[sohguanh]

TLDR:

1. A small handful of unit trust can occasionally beat the index
2. We have no idea which unit trusts these will be
3. Therefore, it is not wrong to bet on unit trusts

I think any rational person here can see there is a problem with point #3

With some unit trust that explicitly say they do not have an index as benchmark how to compare with equivalent ETF? Even a recent Endowus post mention that exist a category of unit trust which has no index as benchmark they focus on total returns only. It seems these exist for quite sometime just not so easily available for retail investors.

 

[Mephist0pheLes]

With some unit trust that explicitly say they do not have an index as benchmark how to compare with equivalent ETF? Even a recent Endowus post mention that exist a category of unit trust which has no index as benchmark they focus on total returns only. It seems these exist for quite sometime just not so easily available for retail investors.

They dont have a benchmark dosnt mean u cant compare rite? Can look at the risk adjusted return

 

[sohguanh]

They dont have a benchmark dosnt mean u cant compare rite? Can look at the risk adjusted return

That was what I did but the expense ratio pretty high in comparison to others of similar geography. I guess the fund managers want to be paid well for their effort. Hence my earlier post of that reader opinion which is if the fund managers can deliver then it maybe ok to pay more like expense ratio. I am neutral on this so just thinking hmmm

 

[tangent314]

If the fund does not benchmark against an index the I will just benchmark it against S&P500 or MSCI World or ACWI. Since the default recommended ETF is VWRA/ISAC any unit trust that can't consistently beat that is waste of time to even consider.

 

[s0crates]

Some people like to stare at the charts, graphs and returns and tweak their portfolio.

Some people just want to invest as much as possible and get on with their life.

Don't need to convince people la.

 

[BBCWatcher]

If the fund does not benchmark against an index the I will just benchmark it against S&P500 or MSCI World or ACWI. Since the default recommended ETF is VWRA/ISAC any unit trust that can't consistently beat that is waste of time to even consider.

The default for a pure global stock index fund perhaps. If you’re benchmarking against bonds, or a STI index fund, or a blend (some of each), then your frame of reference shifts.

Sometimes you don’t have to do much analysis. If for example some unit trust is charging a management fee 1 percentage point per year higher than a typical, popular, reasonably comparable index fund alternative charges then why do you need any more information to select a fund? One percentage point per year is a HUGE drag!

 

[loveboon]

Bump! Anyone still investing in unit trusts?

 

[cokecheers]

I invested a lump sum 5 year ago on eastsrping investment Funds - monthly income plan M. Previously monthly interest was good, fixed 5% monthly.
However last yr, there has been some change where the interest now become % of the NAV and now interest become 3% monthly. adding to the problem, the unit price drop almost half from what i have invested.

So taking consideration of the interest i have gotten, i now suffered a paper lost of around 10k. and recommendation wat should I do to cut lost?

 

[sohguanh]

I invested a lump sum 5 year ago on eastsrping investment Funds - monthly income plan M. Previously monthly interest was good, fixed 5% monthly.
However last yr, there has been some change where the interest now become % of the NAV and now interest become 3% monthly. adding to the problem, the unit price drop almost half from what i have invested.

So taking consideration of the interest i have gotten, i now suffered a paper lost of around 10k. and recommendation wat should I do to cut lost?

Depend on which broker you use some allow inter or intra fund transfer at no cost. E.g FSMOne allow and I have that same fund as you and do a inter fund transfer which later recovered. Lesson learnt is don't invest unit trust just for dividends purely. You will slowly get it after you invest more years. Funds that are mandated or forced to pay out high dividends usually their nav don't move up fast a lot and lousy funds actually go into negative.

 

[wutawa]

I invested a lump sum 5 year ago on eastsrping investment Funds - monthly income plan M. Previously monthly interest was good, fixed 5% monthly.
However last yr, there has been some change where the interest now become % of the NAV and now interest become 3% monthly. adding to the problem, the unit price drop almost half from what i have invested.

So taking consideration of the interest i have gotten, i now suffered a paper lost of around 10k. and recommendation wat should I do to cut lost?

thanks for sharing your bad experience.

(vested in mari invest)

 

[cokecheers]

Depend on which broker you use some allow inter or intra fund transfer at no cost. E.g FSMOne allow and I have that same fund as you and do a inter fund transfer which later recovered. Lesson learnt is don't invest unit trust just for dividends purely. You will slowly get it after you invest more years. Funds that are mandated or forced to pay out high dividends usually their nav don't move up fast a lot and lousy funds actually go into negative.

Any recommendations of which fund i should switch to?

 

[sohguanh]

Any recommendations of which fund i should switch to?

It depend on which broker you are using or bought through banks, financial institution etc. Those channels you may not be able to DIY too and if they allow some charge redemption or switching fees.

Which fund will depend you only want pure dividend kind, half half, no dividend? Then based on asset class, geography, past history, fees.

I do not put fees as highest criteria becuz I know some funds low fees they perform only barely same as funds with higher fees which is handled by more skillful manager.

And some hardcore ETF supporters will ask you go for ETF instead which most of the time required you to change SGD to other currency usually USD.

 

[cokecheers]

It depend on which broker you are using or bought through banks, financial institution etc. Those channels you may not be able to DIY too and if they allow some charge redemption or switching fees.

Which fund will depend you only want pure dividend kind, half half, no dividend? Then based on asset class, geography, past history, fees.

I do not put fees as highest criteria becuz I know some funds low fees they perform only barely same as funds with higher fees which is handled by more skillful manager.

And some hardcore ETF supporters will ask you go for ETF instead which most of the time required you to change SGD to other currency usually USD.

I bought through boc. I prefer half half. Regarding fee, i need to check boc if they allow me to switch without fee, which i doubt so