Agree.

Either you overestimate yourself or underestimate others , or both

When drop 1-2%, can topup few hundreds to few K; When big drop, can topup 10-20k. There are many rich people out there you know

Recently the market is oscillating in bigger oscillation. A while ago they just came out of the Guam bombing scare and now into this. Not just US, the Asian market is behaving the same.

This is an extract of an article from Tong of Absolutely Stocks.

Balanced funds: not so balanced

Actively managed funds have been getting the thumbs down from nearly all quarters.

Investors have certainly made their stance known, taking money out of active funds (especially those with comparatively high expense ratios/fees) and piling into passive/index-linked funds including exchange-traded funds (ETF). Globally, ETF with their very low fees has grown exponentially – from just US$807 billion in 2007 to US$4.1 trillion today.

This week, I’ve decided to take a closer look at the performances of some of the biggest actively managed funds myself. To substantiate claims of their underperformance relative to the market, the reason why investors are flocking to passive investing. The results are quite convincing.

In Singapore, 3 of the 13 largest balanced funds (that is, they invest in both equity and bonds) underperformed both the comparable equity and bond ETFs in the past 3 years – Capital Group EM, Schroder Asian Income and Franklin Income.

None outperformed both the equity and bond ETFs.

Their annualised returns range from -3.2% to 4.3%. The average return (in US dollar terms) is 1.5% p.a. for the last 3 years.

3 of the 13 suffered absolute losses – JPM Global Income, Capital Group EM and Franklin Income. Only 2 made an annualised absolute gain in excess of 3% p.a.

And these returns are before upfront sales charges.

In Malaysia, 4 of the 13 largest funds fared worse than both comparable equity and bond ETFs over the last 3 years. They are RHB Asian Income, Affin Hwang Select SGD Income, Public Islamic Mixed Asset and RHB Kidsave Trust.

Only 5 of the 13 managed to beat both the comparable equity or bond ETFs.

Their annualised returns range from -0.4% to 11.4%. The average return (in ringgit terms) is 4.7% p.a.

One of the 13 suffered an absolute loss while only 5 made absolute gains in excess of 5%. The latter includes RHB Asian Income, Affin Hwang Select Income, Affin Hwang Select AUD Income, Affin Hwang Select SGD Income and CIMB Islamic Balanced.

Fees always matter. Clearly, the less a fund charges to cover expenses, the more of its returns are left over for fund holders. As both tables show, the total expense ratio for all the 26 funds – average of about 1.6% – far exceeds that for equity and bond ETFs.

To put all these numbers into perspective, assuming the maximum upfront sales charge of 5%, the annualised 3-year returns for investors would be -0.22% in Singapore and 2.93% in Malaysia, on average.

That is worse than putting your money in risk-free fixed deposits in both countries!

In short, these balanced funds (on average) are hardly servicing the investors – with poor performances, high annual fees and big upfront sales commissions.

It adds nothing new to this thread that we didn't already knew.

"Only 5 of the 13 managed to beat..." sums up why this thread is active.

One good fund to hold is more than enough.

So which is the best among the 5 ? I hold RHB Asian Income Fund for about a year, return is about 9.75%, consider good for the fund class.

Well past achievement does not necessary reflect future performance anyway Need to always keep an eye out for rising stars among all the funds.

Just starting out to invest in unit trust. What's a few good ones to start with now? Ikan bills amount only though. Hoping to grow it a little.

try these?.....
Recommended Portfolios

There is a total of 6 recommended portfolios, 3 each for conventional investors and shariah-compliant investors.
These portfolio recommendations are meant to serve as possible guidelines and do not take into account of the financial situation, time horizon, existing portfolio and risk profile of an individual investor.
It is the investor's responsibility and discretion to decide if these funds and allocations are suitable for him or her.
If in doubt, please seek professional advice, or kindly contact FSM client investment specialist team.

https://www.fundsupermart.com.my/main/inves...ntportfolio.tpl

Looking more for 1-2 funds only. Don't have 10k warchest yet

Do You Really Need RM10K For A Unit Trust Portfolio?
If you have less than RM10,000, can you kick start your investment journey? Here's a piece of good news: yes you can!
If you do not need RM10,000, how much then do you really need to build a diversified unit trust portfolio?
The answer: just RM1,000. Some investors may understandably balk at this amount.

In this week's Idea of the Week segment, FSM explain the minimum investment amount to build a unit trust portfolio on Fundsupermart as well as the power of compounding.
https://www.fundsupermart.com.my/main/resea...July-2015--6123

This post has been edited by T231H: Aug 19 2017, 08:02 AM

confirmed we have spy in this thread liao

FSM reads: should we wait for 20% discount?


..... "As such, from this finding, we can conclude that if one doesn’t have a crystal ball, it is wise to stay invested in the market as it can be very costly to time the market."



This post has been edited by funnyface: Aug 19 2017, 10:50 AM

To be realistic, we are not wizards who can predict future events. Hence, at Fundsupermart, we do not encourage investors to time the market. Instead, we strongly emphasize on the time one stays invested in the market.

lol shots fired and got a feeling fsm is saying enough is enough. these noob needs a little reminding. Good job!

Your above punya post is FSM staff liau

Friend T231H, send my regards to Hui Ching and Jennifer ok?

Xuzen

Yup there is a spy in this thread .
Come on come on reveal yourself

Based on some of the gains posted by some of the forummers here , fsm recommended funds are pretty good. You can start with that.

Run baby run!!!

Ahahahahah

I think this was aimed at Ramjade's strategy of timing the market.
However, he should be applauded as a deep value investor. Saving costs as much as he can.
Just that he forgets that time lost is an opportunity cost too.

lol penny wise pound foolish I must say. when it does drop he usually says drop 1%-2% will wait again for the big drop. I heard his "big" drop since last year and by the time he wanna invest our currency dropped thus his purchasing power is less than if he were to start from the beginning.

then he comes in and diew our myr and say wanna shift to SG lor. thing is he is moving so little funds since he doesn't have an active main income generator so all in all talk cock. also repeats himself in other threads.