[quote=gark,Sep 25 2012, 11:43 AM]So look at the layer of fees... you pay 2% to buy the Reit fund (distributor untung)...then pay the manager 1.5% to manage the fund (fund manager untung), and in the REIT holdings itself, the REIT is paying the managers 1.5%-2.0% to manage property (REIT manager untung) and also pay employees managing the REIT (holding company untung).  so many fees....  

if you buy yourself, then you only pay 0.1% (broker untung), 1.5%-2.0% for REIT manager (REIT manager untung)and then to the REIT employees (holding company untung)... 

[/quote]

Yes, unit trust products are more expensive than say invest directly to the securities (in this case a REIT). But think of the fees you paid to hire the Fund Manager to manage your risk -from inspecting the assets (REIT company, sponsors, building portfolio etc) to selecting the REITs -all these may require team of professionals with more experience, skills and sometimes out-right information.

It's always cheaper to invest in stocks/REITs directly but one of the main purpose of buying UT funds are to diversify your risk and not hold to just one or a few stocks.

Just my 2 cents

---

Added on September 26, 2012, 6:32 amJust telling the reality mah.... market timers usually don't profit. Buy on valuations and fundamentals. If you invest in UT, read more on macro-economic and general valuation of the region you are buying. The managers have you covered on individual stocks, so you must see the big picture.

[/quote]

Can't agree more with this statement. I have seen many punters in stock market or in UT (yes, they are many if them) don't really make meaningful or any return even after "timing" the market.

Reason is simple, people are emotional and when they make investment decisions emotionally, chances are their feet are swing by the herd and just follow the majority of retail flows.

I'll add on to gark's comment that choosing the right fund, right manager is important and also diversifying your total wealth portfolio. It is an exercise to better understand one's risk appetite, too.

This post has been edited by Bedroomguitarist: Sep 26 2012, 06:32 AM

Well, AmAsia Pac REITs already paid me about 6% yield and on top of that my capital has appreciated about 20%. My other fund also returned about 8-10% every year since i started few years back so I'm quite happy with them.

My KLSE stocks didn't do too well, make some here lose some there though I still make some puny return. In fact most of my stock returns are from dividends... i guess stock picking is not for everyone And I'll never trust any of those "insider news" anymore, once i nearly lose my pants off LOL

I guess it all boils down to how we treat certain investments. For me, UT is my long term investment and stocks are more liquid and short term.