Yes, the best bets statistically are the ones with the:
1. best Sharpe ratio & Alpha Jansen Ratio
2. rated at least 4 stars by Morning Star, Lippers & Normandy
3. a minimum of 5 years track record for the above, preferably 10 years, with minimum 8%CAGR

and lowest purchase, management and exit cost (if all else above being equal - the tie breaker)

Gambate!

This post has been edited by wongmunkeong: Aug 4 2012, 06:43 AM

and if U do so, U incur service charges again for OCBC's equity funds...
then the fler moves to CWA and U move again?

These kinda "agents" should be shot on sight.
They should at least have the decency to give options to their customers - if that equity fund didnt work out, what are the most probable causes and what are one's options + costs.

Moving from one fund house to another is literally selling, not "SWITCHING", off then buying in again, incurring the dang services charges again
No better or more cost effective options meh?
and er.. don't tell me lump sum whack again ar?

Note - even the donkey PCSF can make $ in 2008/2009 buy-in transactions, if one did value averaging & dollar averaging, and took profits at abnormal gains
Thus, selection of fund is one thing, execution plans is the other 50% of the puzzle.

Just a thought

Heheh - er.. take a look at the ZIP of an Excel file - look at the last column. Please note this is my "interpretation" ar - the formula needs a "safe returns %", i took 3% as the safe return %, a simple FD rate. Wiki has the full formula (+Sharpe) in "real formula" writings, not Excel-ized

The rest - Sharpe ratio, beta, etc. "pressed out" from Public Mutual's software called FPAdvisor
How to get it? Poke your favourite agent with subscription to that software

This post has been edited by wongmunkeong: Aug 10 2012, 09:24 PM


Attached File(s)
 20120430_Jensen_s_Alpha.zip ( 19.87k ) Number of downloads: 70

No sifu, just "see food" (eat food) bro .

Eh? I highlighted the 2 funds coz the numbers (all in all) looked good for 3, 5 and 10 years (if i remember correctly lar - done this in Apr wor ).
Note - that Excel was for my own monkeying around to see whether the JA ratio thinggy helps the probability of picking a fund that outperforms due to the fund manager(s). Looks to be true for PSmallCap, though i need to test it out with "bad endings" before executing anything - fish, my new PC and FPAdvisor doesn't play well, can't get the results out yet

I've yet to test it out across "bad endings" - ie. 10yrs, 5yrs and 3yrs ending Dec 2008 or Jan 2009
That Excel i shared was years ending April 2012 only, which, if it's a 5 years or 3 years range, is to me, considered "good endings" since end 2008 lelong.
Thus, please don't read way too much into it ar hehe. Main purpose i shared that Excel was how i calculated JA ratio based on PM's FPAdvisor's output.

---

Added on August 11, 2012, 5:32 amGenerally?
I'd start with a filtered list of 10yrs, 5yrs & 3yrs "good ending" + another set "bad ending" (minimum 3 & 5yrs) stats, filtering for:
1. Top 1/3 highest CAGR - for total returns lar, i care crap if all else look good but CAGR bottom 25%
2. Top 1/3 highest Fund's Sharpe ratio - general risk/reward of the fund is much more important than its benchmark
3. Top 1/3 highest JA ratio - the fund manager(s) "alpha-bility"
Old style - i highlight the funds which appears in all 6 lists (10yrs, 5yr, 3yrs) like using a highlighter in Excel

THEN
4. Then only i go check out the normal lor like Lippers & MorningStar - just to see if it's at least 4 stars / above average, in case i screwed up or data screwed up
5. Then look at the funds' prospectus to see whether or how it can fit my planned Asset Allocation.
6. Then start a programmatic investment for 3 years minimum.
Will stop and change IF at the end of 3 years or going into 4th, most funds up and this particular fund's returns STILL down.
If fund's return is down a year, no biggie but continuously down for like 3 years+ WHILE others are growing or positive for the similar time-line, time to re-think it and fix the mistake IMHO.

---------------

Jiran jiran sekalian - pls do ask the real sifu, Xuzen, if really detailed info required (whys and whats and hows) on Jansen Alpha ratio if Wiki or Investopedia doesn't satisfy U ar. I picked up the ratio from Xuzen then Wiki-ed / googled it to see whether interesting to use with my other filters or not - thus no expert wielder of JA ratio

This post has been edited by wongmunkeong: Aug 11 2012, 05:39 AM

er.. i'm not sharing info on funds leh j.passing.by.
A fellow forumer was asking about Sharpe ratio and JA ratio and i shared an example - via Excel ( http://forum.lowyat.net/topic/2007814/+2518 read in context pls ).
The focus is supposed to be on the data that one can "press" out of a PM agent with FPAdvisor + what one can do with it. NOT SPECIFIC FUNDS
What you or anyone else chose to read into it - that's YOUR interpretation.

This post has been edited by wongmunkeong: Aug 11 2012, 11:19 AM