Unit Trusts

[wutawa]

I am sure he will regret buying the uob unit trust after some time. I hope I am wrong.

I am invested in mari invest - unit trust.

 

[reddevil0728]

I would think for HNW customers they should propose something that is not for general retail public kind of investment. It has to be different to justify the status. For OP those funds we also can buy leh just we monitor ourselves.

So make me think OP status not big enough for them to suggest something more unique and special.

Welcome back!

OP already has certain risk appetite, even if is HNW, suggest more unique and special may not be align with what OP wants what.

 

[reddevil0728]

Appreciate yours and everyones' insight above. Just to state a few aspects using a capital amount of e.g $20,000.

1.) 3% charge is one-time charge so if I pay $600 (if I invest $20,000), it will be the only charge I will incur throughout the entire duration where UOB holds my $20,000.

Unless, if in the scenario the fund underperformed and is negative returns (lower than 0%) then I will lose money on my $20,000.

I think that’s what people is saying 3% is high

2.) In addition, the RM said that there will be no recurring charge.

Unless they might deduct it from the interest earned in those funds e.g returns is 6% then they straightaway take 3% but the RM confirmed that there is no recurring charge but simply a one-time charge of $600 at the beginning ($20,000 × 3%)

What do you mean by might deduct? And what interest earned? Is best to understand the details before buying anything no?

3.) But you are correct in the sense that it is similar to ETFs.

What the RMs explained was that both these Unit Trusts are a portfolio, and the Fund Managers will buy different 10 different shares (which makes up the portfolio) to seek to try to generate a positive % return on the capital amount ($20,000).

Yes that’s how it works but on what basis do you think this will outperform?

4.) 1 reason why I considered the Unit Trusts was simply to the fact they have a shorter time horizon compared to ILPs and Endowment/Annuity Plans.

Those plans will require the capital to be locked in for at least around 8 years or so to break even. At least for the plans that I was introduced to by the Singlife, Tokyo Marine and AIA agents.

Thus, I never took it up. Was close to taking an ILP with Tokio Marine (Tokio Marine Gold Pro) but in the end did not do so.

U consider UT cause of comparison to those but why never compare to ETF?

5.) I did pondered buying ETFs on my own, but tbh it is difficult to for me to know which stocks to exactly buy.

You buy ETF precisely because u dun need to know which stocks to buy

Am aware that ETFs fluctuation is much lesser compared to stocks, but nevertheless you will still need to monitor it every now and then.

You yourself pointed out the difference why you interchange the 2 above.

also, how certain that your RM will still be around in the long term to monitor for you? And what does “monitor” mean to you?

If I invest in ETFs myself, I may possibly not know how to choose on my own.

I thought you started this very thread for a reason? And that’s to ask questions to find out more why suddenly cannot ask about what to know about ETF?

6.) In conclusion, perhaps I will consider buying Unit Trusts or similar plans from Endowus, etc. e.g Endowus Cash Smart Portfolio which charges a lesser interest %. Hope it will be lesser than 3%.

Am aware that there are a few EDMWers who have bought the above portfolio.

Warm Regards

Here not EDMW. You posted the thread in wrong section?

 

[s0crates]

6.) In conclusion, perhaps I will consider buying Unit Trusts or similar plans from Endowus, etc. e.g Endowus Cash Smart Portfolio which charges a lesser interest %. Hope it will be lesser than 3%.

Am aware that there are a few EDMWers who have bought the above portfolio.

Warm Regards

Many of us here think, and to a large extent are, experts in investing and money management. We will share what we think is the optimal strategy for you, with no care or regard on whether you are able to follow through on it or not.

I am also new to some new hobbies, and I go to forums to know how experts do it. That will be my "north star" so I know how to manage things when I am confident and skilled to do it. But I have to start simple because building a routine, gaining confidence take time.

So what you need to do now in the investing context is:

1. Identify whats the best option an expert will do
2. What are the baby steps that you can take as you gain confidence learn and reflect more about your investing capability

I can very bluntly tell you that getting started on promotions or having poorly trained, sales driven RM is not a step in the right direction.

Don't just contend with buying the lowest risk product (cash smart secure, fixed deposit). That's like being reasonably fit but still do 1kg dumbbell lifts to make yourself feel that you made progress.

I think using an Endowus is a good start, probably look towards their more conservative portfolios (fixed income heavy). They don't earn commissions, make investing quite simple, and have decent articles to learn from.

I recommend my noob/kancheong friends and families to use them too. It's a reasonable progress from just doing nothing or getting scammed by the RMs/FAs.

IMO the current Northstar to investing in SG is to invest in ucits ETFs through IBKR and CPF/SRS with Endowus. The strategy is to just buy broad market, low cost funds through a low cost platform and hold it.

Good luck, and please do start right with the right goal in mind.

 

[reddevil0728]

Many of us here think, and to a large extent are, experts in investing and money management. We will share what we think is the optimal strategy for you, with no care or regard on whether you are able to follow through on it or not.

I am also new to some new hobbies, and I go to forums to know how experts do it. That will be my "north star" so I know how to manage things when I am confident and skilled to do it. But I have to start simple because building a routine, gaining confidence take time.

So what you need to do now in the investing context is:

1. Identify whats the best option an expert will do
2. What are the baby steps that you can take as you gain confidence learn and reflect more about your investing capability

I can very bluntly tell you that getting started on promotions or having poorly trained, sales driven RM is not a step in the right direction.

Don't just contend with buying the lowest risk product (cash smart secure, fixed deposit). That's like being reasonably fit but still do 1kg dumbbell lifts to make yourself feel that you made progress.

I think using an Endowus is a good start, probably look towards their more conservative portfolios (fixed income heavy). They don't earn commissions, make investing quite simple, and have decent articles to learn from.

I recommend my noob/kancheong friends and families to use them too. It's a reasonable progress from just doing nothing or getting scammed by the RMs/FAs.

IMO the current Northstar to investing in SG is to invest in ucits ETFs through IBKR and CPF/SRS with Endowus. The strategy is to just buy broad market, low cost funds through a low cost platform and hold it.

Good luck, and please do start right with the right goal in mind.

not sure about the "experts in vesting n mm" part. but in general i agree that if one isn't willing to invest the time and effort to help yourself, nobody can.

 

[s0crates]

not sure about the "experts in vesting n mm" part. but in general i agree that if one isn't willing to invest the time and effort to help yourself, nobody can.

Some of us are la, at least I think I am.

 

[reddevil0728]

Some of us are la, at least I think I am.

lol ok self praise.

but expert or not is secondary, is more about whether talk sense.

don't need to be expert to talk sense

 

[wutawa]

most of the replies are sincere on helping (except the uob div guy )

 

[s0crates]

lol ok self praise.

but expert or not is secondary, is more about whether talk sense.

don't need to be expert to talk sense

Not easy to discern what makes sense or not la. Need to put in some effort like you say, and also understand there is some level of uncertainty/risk/ no immediate outcomes

If it's easy to understand what work/doesn't, then we wont have people trying all these random raw fruitarian/carnivore diets, or extreme exercising tips.

 

[reddevil0728]

Not easy to discern what makes sense or not la. Need to put in some effort like you say, and also understand there is some level of uncertainty/risk/ no immediate outcomes

If it's easy to understand what work/doesn't, then we wont have people trying all these random raw fruitarian/carnivore diets, or extreme exercising tips.

yea but definitely not just because someone is so called "expert" then just blindly follow ma.

is about whether what's being mentioned is logical, rational and principled. regardless of who says it

 

[DevilPlate]

TS should at least try to nego 3% sales charge to 2%.

There are really alot of folks out there who are braindead when comes to investing. They don't even know what is SSB and how to apply/redeem and simply continue with their FD.

 

[sohguanh]

To OP another point to consider. Here readers like to say invest ETF. Most need change currency to USD etc. This approach need to factor in when change back to SGD. Another forum a guy sell vwra 100k USD as need do down payment for SG ppty. He was shocked the loss incurred if change back but he got no choice. He readily admit he underlook this criteria many years ago. He still earn but not as much as he think last regret. Btw he use IBKR and they offer him one free withdrawal per month so he also not happy as I think he wants to change a few times to get better average exchange rate to SGD then faster transfer back to SGD bank account bad move.

If it sounds alien to you just keep it simple any investment that needs you do DIY change currency to and fro abandon it. You can never know what is a good time to change back and incur loss. Try stick to investment that you invest with SGD and sell get back SGD much easier to compute later. Endowus is good alternative.

 

[sglandscape]

To OP another point to consider. Here readers like to say invest ETF. Most need change currency to USD etc. This approach need to factor in when change back to SGD. Another forum a guy sell vwra 100k USD as need do down payment for SG ppty. He was shocked the loss incurred if change back but he got no choice. He readily admit he underlook this criteria many years ago. He still earn but not as much as he think last regret.

If it sounds alien to you just keep it simple any investment that needs you do DIY change currency to and fro abandon it. You can never know what is a good time to change back and incur loss. Try stick to investment that you invest with SGD and sell get back SGD much easier to compute later. Endowus is good alternative.

What you're saying is factually correct but conceptually incorrect. If you look at total returns, I'm almost sure the VWRA returns would have been better than SGD.

Also people who prefer to know their returns in SGD, to look at their total returns in SGD terms and take the latest FX rate each time to not be surprise.

 

[krikering]

Many of us here think, and to a large extent are, experts in investing and money management. We will share what we think is the optimal strategy for you, with no care or regard on whether you are able to follow through on it or not.

I am also new to some new hobbies, and I go to forums to know how experts do it. That will be my "north star" so I know how to manage things when I am confident and skilled to do it. But I have to start simple because building a routine, gaining confidence take time.

So what you need to do now in the investing context is:

1. Identify whats the best option an expert will do
2. What are the baby steps that you can take as you gain confidence learn and reflect more about your investing capability

I can very bluntly tell you that getting started on promotions or having poorly trained, sales driven RM is not a step in the right direction.

Don't just contend with buying the lowest risk product (cash smart secure, fixed deposit). That's like being reasonably fit but still do 1kg dumbbell lifts to make yourself feel that you made progress.

I think using an Endowus is a good start, probably look towards their more conservative portfolios (fixed income heavy). They don't earn commissions, make investing quite simple, and have decent articles to learn from.

I recommend my noob/kancheong friends and families to use them too. It's a reasonable progress from just doing nothing or getting scammed by the RMs/FAs.

IMO the current Northstar to investing in SG is to invest in ucits ETFs through IBKR and CPF/SRS with Endowus. The strategy is to just buy broad market, low cost funds through a low cost platform and hold it.

Good luck, and please do start right with the right goal in mind.

Hi all, really appreciate a lot for your input.

Jut for extra context, I have yet to take up the Unit Trusts with UOB as I have yet to hit the Maximum $150,000.

In addition, I currently have $20,000 with Singlife Aviva in the form of a FD mid last year where the rate is 4%. It will mature next year

I think it is better for you to carry out point 6, let the professional do for you at a cost you are comfortable with.

Peace of mind is priceless.

Yes, I believe that option 6 is the most worthwhile option at the moment.

I have fixed a call with Endowus tomorrow with regards to their Endowus Cash Smart Portfolio (and also to enquire if they have similar plans at the moment.

To OP another point to consider. Here readers like to say invest ETF. Most need change currency to USD etc. This approach need to factor in when change back to SGD. Another forum a guy sell vwra 100k USD as need do down payment for SG ppty. He was shocked the loss incurred if change back but he got no choice. He readily admit he underlook this criteria many years ago. He still earn but not as much as he think last regret.

If it sounds alien to you just keep it simple any investment that needs you do DIY change currency to and fro abandon it. You can never know what is a good time to change back and incur loss. Try stick to investment that you invest with SGD and sell get back SGD much easier to compute later. Endowus is good alternative.

Yes, Endowus front what I have heard is a good alternative from my colleagues, etc.

Other options are Interactive Broker, where perhaps I may consider buying an ETF (more stable ones e.g Toyota or Apple, etc.) in the future and let it grow over a year to see how.

I also heard that Phillip Capital is also worth considering, due to their low charges as well compared to the banks, etc.

 

[sohguanh]

I also heard that Phillip Capital is also worth considering, due to their low charges as well compared to the banks, etc.

I test water their poems Smart Portfolio withdrawal is ancient. Print form out sign (e-sign not allowed) scan or take picture email to them. I house no printer how cannot withdraw? Office printer now they track who print for own usage nowadays dangerous.

My latest research is SCB CIO funds promotion 0 sales charge and their fund inside are a bunch of ETFs. You transact and dividends all in SGD good lobang for me. Now waiting for their first dividend which is paid monthly. But this fund got red colour up and down not for everyone.

 

[sohguanh]

I am sure he will regret buying the uob unit trust after some time. I hope I am wrong.

I am invested in mari invest - unit trust.

To be fair you lose monies does not mean other ppl lose monies leh. UOB unit trust expense ratio is high I admit but I do get good returns from them. E-Commerce, Durable and the more safer United SGD are some that come to my mind.

 

[krikering]

To be fair you lose monies does not mean other ppl lose monies leh. UOB unit trust expense ratio is high I admit but I do get good returns from them. E-Commerce, Durable and the more safer United SGD are some that come to my mind.

Yes, the United Income Fund is generally quite safe from what I have seen.

In my opinion, a lot of the people who take up UOB Unit Trusts already have an Account with them thus refers to just continue buying products with them so as to not have a myriad of products across different platforms/brokers, etc. The Wealth Banking customer with have a dedicated RM to serve them and also liaise with the fund manager closely to update every few months accordingly.

If in the event they can lower down the charges to e.g 2.5% or so, I might still consider taking it with then the United Income Fund since have wealth banking status with them.

The RM has said that they are able to switch accordingly from United Income Fund to United Growth Fund, depending on how the trend with regards to Equities rate go in the market. Of course, they cannot predict it 100% accurately, no one can.

I might decide to perhaps teat water and out 10k with them in future.

But for now, I will have the call with Endowus first tomorrow If their charge are lower e.g 2% or more. May perhaps consider investing 10k with their Endowus Smart Cash Portfolio.

 

[sohguanh]

What you're saying is factually correct but conceptually incorrect. If you look at total returns, I'm almost sure the VWRA returns would have been better than SGD.

Also people who prefer to know their returns in SGD, to look at their total returns in SGD terms and take the latest FX rate each time to not be surprise.

I say before unless the USD investment returns is so much better. Take note US lost decade from 2000 to 2010 is about 10 years. No one can predict future no guaranteed eat. You claimed I am conceptually incorrect is based on past results. If want to do that please explain US lost decade will not happen in future? You dare to sumpah?

 

[wutawa]

To be fair you lose monies does not mean other ppl lose monies leh. UOB unit trust expense ratio is high I admit but I do get good returns from them. E-Commerce, Durable and the more safer United SGD are some that come to my mind.

how much capital u put in uob unit trust? what % yield have u obtained? pls share, thanks.

 

[DevilPlate]

I say before unless the USD investment returns is so much better. Take note US lost decade from 2000 to 2010 is about 10 years. No one can predict future no guaranteed eat. You claimed I am conceptually incorrect is based on past results. If want to do that please explain US lost decade will not happen in future? You dare to sumpah?

Past performance is not a guarantee of future results

Sounds familiar?