Is your Unit Trust making MONEY??

k4korny SG

Source: Weekend Today
S'PORE FUNDS UNDER MANAGEMENT UP 23%
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Funds under management in Singapore increased 23 per cent last year, the
Monetary Authority of Singapore (MAS) said on Friday. Asian stock markets
rose during the year and asset-management companies moved regional
portfolios to the country.

The MAS said total assets managed by Singapore-based financial
institutions rose to $572.6 billion from $465.2 billion in 2003, when
funds under management rose 35 per cent then.

The increase in managed assets is a boost to Singapore's ambition to
become a key regional financial centre in Asia and compete with rival
markets such as Hong Kong.

The central bank also expects growth in regional economies to boost stocks
next year, raising the amount of funds managed here.

"Good economic growth in Asia has attracted global investors to allocate
more investments to Asia, to ride on this growth and to provide
diversification," MAS managing director Heng Swee Keat said on Friday.
"Wealth creation, increasing affluence and investor sophistication will
generate strong demand."

The Government of Singapore Investment Corp, which had farmed out at least
$30 billion invested with fund managers, said a year ago that it planned
to raise that by $5 billion a year to bolster Singapore's
wealth-management industry.

Morgan Stanley Capital International's Asia Pacific excluding Japan Index,
which tracks more than 600 stocks, rose 19 per cent last year.

The MAS said that 70 per cent of the assets under management were sourced
from overseas. Asia-Pacific countries were the main source of the funds,
with new markets such as the Middle East and South Asia increasing in
their contributions, said Mr Heng.

Funds from the Middle East gained 76 per cent, while those from South
Asia rose 53 per cent, the central bank said. - Bloomberg

According to this report, you should be.. Laughing
share your experience..

shade343 SG

After investing in shares, I have no money left for unit trusts... Laughing

k4korny SG

nobody share ah? Shocked Laughing

ok.. i'll start with my experience. Bought a Singapore Growth Fund from First State Investment (used to be CMG). After 4 years, I've got a pretty decent 20% return.

But my friends who bought UT at about the same time aren't so fortunate. One bought a Global Growth Fund which finally broke even this year. One bought a Tech Fund, and is still making a slight loss.

The problem is that there are too much hidden cost involved. super confusing..

shinta SG

there's this templeton one....

what do u guys think of it?

was readin in sgfund de mag comparing a couple of funds n their performance..

dragg SG

i invested 10k in 2 unit trust and made 2.3k in a year. that was a decade ago, i cashed out and luckily did not invest further.

k4korny SG

Which templeton one? cos templeton has many diff type of funds.. Wink

For unit trust, one of the main thing you consider is the performance of the underlying market it is investing in... eg. Global Equity Fund will be investing in stocks of companies ard the world. Income funds will be investing in Bonds. Balanced Funds invest in both stocks and bonds.

Stocks and bonds work in reverse direction
Stocks price rises when there's a Bull Market.. so Equity funds will make $$, and Income funds will lose $$. and vice versa..
Balanced Funds will not lose too much in a Bear market. But in a Bull run, it will not earn as much either.

Within Equity fund, there's also different sectors and countries it will be invested in. These will be riskier.. but it also means the gains can potentially be higher.

So to choose a Unit trust, first you must think about how the market will perform. eg. You think China is going to do well in the next 5 years. Then you look for a China Growth Fund. After that you will select which fund mgmt house you want to buy from eg. Franklin Templeton, DBSAM, etc.