QUOTE(i1899 @ Aug 17 2017, 11:51 AM)
“We see things very differently,” he said. “I’m shut off to the market in a sense. If you ask me what is the level of the KLCI, I don’t even know.”
He definitely can think very differently, and his stock picks are very unique. That's the reason inter-pac fund can have extraordinary YTD return.
KLCI is the index of a group of the largest companies in the country's stock exchange, alike Dow Jones, STI (Singapore) or HSI (Hong Kong). Good as a barometer to gauge the state of economy in general.
I don't think the incdex would be any help in picking stocks - especially those listed outside of the main board, in the ACE market.
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As an investor in UT funds, I think it is advisable to read the fund's prospectus to know what sort of stocks it can have. For example, for a small-cap fund, its prospectus would define what are the permissible stocks it can invest in - like being a component in the bursa small-cap index, capitalisation from 300 million to 1.2 billion. etc. etc.
If the fund is picking stocks in ACE, then it should not be compared to another small-cap fund holding stcoks in the small-cap index and compare only their returns without taking other factors into consideration. The risk is not the same. Extraodinary returns, extraodinary risk.