What he said is exactly why most of us abandon UT. Plus some of the UTs we buy are actually funding another underlying mutual fund which causes a double charge of management fees. Please read your prospectus and platform fees! Last time fsm was popular because not many of us have what we have not. Opening Singapore bank accounts to wise transfers to brokers.

Usually and normally,
For feeder ut funds that invested in target funds, ...
There are no double charge of annual fees.
Read its Prospectus for the details


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ooo

thats why i was bring this out, utilise both UT and ETF for different market/sector/asset class


management fee is included into the NAV calculation and the UT returns are after deduction of management fee
utilise UT for market/sector/asset class that can outperform the index
utilise index ETF for market like US because it is very hard to outperform US index in long term



and for

EPF I-Invest and PRS tax incentive,
you can only invest in UT, unless 1 day EPF allow us to invest in US ETF, then it will be no brainer to invest into US index ETF with EPF money

This post has been edited by zebras: Apr 17 2024, 03:34 PM

1.Principal Islamic Tech- A very short tenured fund - track record is uncertain. Purely from a returns perspective, yes outperforming index. But frankly you buy any Mag 7 in a basket and you will outperform from 2022 onwards. It was a greatly timed opening.

At least in my 2 cents, thematic funds are not meant to be held for long durations because they have finite lifespan that is tagged to the underlying theme. The theme may be the hottest cake on the block but you need to know when you have too much cake. Say today's flavour is vanilla but due to global over-supply or change in global flabvour for chocolate, you can expect your vanilla themed fund to perform poorly.

Principal Islamic Tech is a spin off of Principal Global Tech, it was intended to cater to the Islamic segment. It may lack the track record but the managers behind the fund are not green horns.

Mutual funds are different from ETFs, a mutual fund is actively managed meaning to say, assuming there is a downturn or adverse market condition, the fund manager would bulk up on cash or sell down risky assets, thereafter pick up undervalued assets. Also, there is an element of diversification involved, you will notice that the fund will not concentrate it's investment in a single stock, security or bond.

ETF on the other hand is passive, it's fixed to whatever stocks it has in its basket. Unless you are savvy enough to switch between ETFs, you will have to ride it out and search for alternatives or hope that the stock picked in the basket will perform or carry the weakest link (example Tesla).

Not to mention the fees you pay Principal for helping you buy the exact same thing from Franklin templeton for much much less fees. This fund is a great rent seeker.

Not true. The management fee can either be charged on fund level (feeder) or target fund level. Generally, it will be on fund level, this would mean that the management fee gained will be shared with FT, thereby reducing the profit margin of Principal. Had the fund been directly been managed by Principal, the outcome would have been the same.

The main issue with Feeder Fund is that the fund is suppose to mirror the target fund but due to the asset allocation typically 95% invested in target fund and 5% in cash/liquid asset. The Feeder Fund may not replicate or may have cash drag that does not reflect the Target Fund. 5% in cash / liquid asset may not be much but the target fund may also maintain cash/liquid asset, hence the corresponding cash may be higher than 5%.


Unless you are looking to trade your unit trust after a year which is weird since you pay what up to 5% in fees, it washes away all your small gains.

Holding it long - you pay 2% fees every year which again cumulates to a lot of fees.

If you are buying unit trust through FSM, the sales charge is 1.5% and can go as low as 1%+, also there maybe special promotions, which the sales charge may even be lower. If you transact directly via EPF platform, you get charge a admin fee of 0.5% (some utmcs waive this). If you trade using utmcs digital platform, you may get lower sales charge as well. Alternatively, some utmcs (not all), you can buy MMF fund first than switch to Equity fund, its possible to incur 0% sales charge but some utmcs may require you to pay for the difference in sales charge. You just have to look harder.

This post has been edited by aurora97: Apr 18 2024, 09:01 AM

For those that interested invest in USD
https://www.fsmone.com.my/cash/auto-sweep

Not attractive when CSOP US fund giving 5%+p.a

This post has been edited by Ramjade: Apr 18 2024, 09:16 AM

May I ask, what funds you have, and what long term returns that consistently beat the benchmark / market for you?

The look harder bit refers to "Sales Charge". What I am saying that there are other platforms that offer lower sales charges. Since you mentioned fees eat into the investor's gains.

I am not in a position to recommend funds. There are plenty of materials, methods etc... to determine which fund is suitable for you and matches your risk profile.

u buy this on IBKR?

Only available on moomoo or tiger sg. Not sure if webull sg have it. I don't need the 5p.a 😁

This post has been edited by Ramjade: Apr 18 2024, 01:24 PM

FSM SG quite bad customer service. Wanna live chat also cant coz too busy. Move to moomoo SG and IBKR the best.

This post has been edited by frankliew: Apr 18 2024, 01:48 PM

guess thats the price to pay for conveniency in malaysia deposit/withdrawal

if i am not wrong moomoo MY has it too.

moomoo MY now giving USD account 0% interest, MYR account 2% interest

Nooo. That one is special for Moomoo sg only. I think tiger also got access. You cannot open moomoo sg as Malaysian anymore.

Tiger has this for usd and sgd

I read the fsm product sheet. 90% in iFAST usd account and 10% in usd account where as Tiger broker is Fullerton USD Cash "A” Acc
LionGlobal USD Enhanced Liquidity
CSOP USD Money Market Fund Acc

So fsm pulling another service that feeds into iFAST yet again. Meh

This post has been edited by Avangelice: Apr 18 2024, 03:49 PM

FSM earn 0.20% pa. Panai.

Their fees are getting worst compared to their competitors but hey maybe good for their old folks customers who prefer convenience and don't need to open this or that like us

For people with just abt 200k in investment, if diversified just 10% of that 200k into a products that may have higher cost of 0.5% pa.
It may have reduced his profits by just 100 pa.

I think For people with that scenario and does not want the trouble or inconvenience to open this or that, they can accepts the loss of that 100 pa. They maybe happy with what they are doing. Furthermore 100 less out of 200k diversified investment is not much.


This post has been edited by MUM: Apr 18 2024, 04:21 PM