Jan 11 2012, 10:59 AM
QUOTE(cherroy @ Jan 9 2012, 02:54 PM)
My personal view,
Balanced fund is rip off in term of service charge.
Balanced fund normal consist of 50:50, or 60:40 between bond and equities.
While balanced fund has service charge of 5% as same as equities fund. While bond fund service charge is range from 1%-1.5%.
If you invested 10k in balanced fund, Rm500 gone.
If you split it yourself and invested 5K in equities and 5K bond fund respectively, RM 250 + RM50 = RM300 gone.
While you can have the same effect of the balanced fund portfolio, of 50:50 bond:equities.
Generally, balanced fund is not going to perform better than equities generally due to bond portion that drag the performance, if market doing good time, why pay more or same with equities fund for a balanced fund.
That extra cost is a trade-off for *supposedly* lower beta, lower volatility.Balanced fund is rip off in term of service charge.
Balanced fund normal consist of 50:50, or 60:40 between bond and equities.
While balanced fund has service charge of 5% as same as equities fund. While bond fund service charge is range from 1%-1.5%.
If you invested 10k in balanced fund, Rm500 gone.
If you split it yourself and invested 5K in equities and 5K bond fund respectively, RM 250 + RM50 = RM300 gone.
While you can have the same effect of the balanced fund portfolio, of 50:50 bond:equities.
Generally, balanced fund is not going to perform better than equities generally due to bond portion that drag the performance, if market doing good time, why pay more or same with equities fund for a balanced fund.
The whole point isn't better returns, just more peace of mind.
Well that's the theory la
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