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  • Unit Trust

    hope i m not reposting this topic. only found an "insurance plans" thread.

    anyway, is anyone here familiar with UT? i m looking to buy into asia market or indonesia mkt.

    any comments on it? tia!!

  • #2
    You should go get a consultation with a bank. Get them to input numbers into their computer and find out if you make a profit or a loss on immediate sale. From experience unit trusts aren't the best way to make money here. I've had good trusts overseas but definitely not in SEA.

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    • #3
      Personally, I don't think too well of the UT here. After the sales charge, management fee and all the other hidden costs, any profits you make goes all the way back to the bank/asset management company.

      Aphrael: Good overseas trust? Any examples?

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      • #4
        I've seen ads for things like Australian Capital Reserve in Australia, and the returns are quite good. What you see is what you get. It's about 5% p.a. and quite flexible. Even if you just have an account with ING direct the interest rates are good, and you don't even have to buy unit trusts.

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        • #5
          I've had good results with UT the last few years. My advice is do your research carefully esp when you want to get into single country funds.... there are lots of good fund managers who really understand the market they are in and lots of lousy ones who just don't have a clue.

          I bought into HSBC Indian growth fund just after the Indian elections last year when the Indian stock market plunged and it has since gone back up and beyond what it was. A few weeks back Sunday Times mentioned another India fund that returned less than 3% in the last year... underperformed it's benchmark and a very poor result considering how well the Indian stock market is performing. I also bought Aberdeen China Opportunites fund when it was launched a few couple years back, currently sitting on about 65% profit. To balance out my portfolio, I also have Templeton Global Balanced fund... returning about 20% slow compared to the other 2 but I'm not complaining.... it's still better than CPF board interest rate!

          The biggest fallacy about UT is that you can just leave them in the hands of the fund manager, don't have to worry about your investment, price will always go up, will never lose money etc. :roll: I still monitor the financial news and will sell in an instant if I think there is long term fall out on bad news. Previously I actually believed all this hype and made very poor decisions on UTs, bought tech UTs at the peak of the tech boom, bought a Singapore UT right before we went into 1998 recession Talk about pouring money down the drain!

          Best option to help reduce those sales charges is to check out websites like finatiq and fundsupermart., they often have selected funds on special reduced charges as a promotion.

          Good luck!

          angie

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          • #6
            Hi, I have invested U/T & stocks before & make decent returns. You definitely have to look at your risk profile to decide what kind of U/T you want, whether is it Global, Asia regions, sectors or country funds? I find it better to go to a Brokage / Securities house than Banks because they represent a larger pool of investment. I am skeptical to go to a bank due to the not too long ago "Structured deposit" article.

            Take a look at this article:

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            • #7
              thanx gals,

              i m currently buying shares actualyl n it's not doing well...

              so thought i'll diversify into UT.

              ae260 , mind sharing how u pick ur UT?

              also, what do u think of asia ex jap?

              thanx in advance!!

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              • #8
                i invest in UT too via findsupermart, i also invested for my mum

                actually fundsupermart is pretty good and user friendly, but please do your research beforehand too. i have made quite a good profit out of my unit trusts

                i think asia ex japan is still good to invest in

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                • #9
                  i am wondering whether asia ex japan may not grow so much if china doesn't do well as most of the funds have a bif protion of it in china equities.

                  what do u gals have to say about it?

                  tia!

                  Comment


                  • #10
                    Originally posted by Pills

                    ae260 , mind sharing how u pick ur UT?
                    Research lots.... both finatiq & fundsupermart have info about lots of funds, select similar funds from several managers & compare the results. Look at past 3 year results and see how each fund performed against its benchmark and against each other*. Monitor the stock markets and financial news since most funds are equity based (unless you are investing in a very conservative/low risk fund which would invest mainly in bonds).

                    There's a good article in today's ST about the new low fees at fundsupermart, check it out. I think almost all my UTs were purchased online either thru finatiq or fundsupermart.

                    angie

                    Edited to add:
                    *Please note almost every fund should have gone up from 2 or 3 years ago when stock markets were doing badly compared to now. You just need to see which fund manger is most consistent in returns.
                    Last edited by ae260; 01-03-2005, 08:51 PM.

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                    • #11
                      Originally posted by Pills
                      i am wondering whether asia ex japan may not grow so much if china doesn't do well as most of the funds have a bif protion of it in china equities.

                      what do u gals have to say about it?


                      Personally I think China is still good for a while yet not just because of strong exports but also due to rising domestic demand. If China changes the yuan peg or raises interest rates then maybe a cause for concern. Any slowdown in the US economy also impacts all of Asia so that is another factor to be aware of.

                      My personal opinion & probably really flawed so don't

                      angie

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                      • #12
                        Do you have to pay capital gains tax on the returns? I've checked out the websites, and it does look more promising than the ones from the banks. It'd be a good investment for starters. Not as much risk as the share market. Definitely more research involved too.

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                        • #13
                          All the UTs I have are purchased with my CPF so no issue with taxes yet. The ones I've paid cash for were the early ones I made loses on (tech UTs & a SG UT) in the late 90s.

                          Agree with beibei that you shouldn't go to a bank without any idea what you want to invest in, they will just try to push whatever they are promoting for that month irregardless if it suits your risk profile or not.

                          angie

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                          • #14
                            Hi, Singapore does not tax on capital gains. Same as AE260, I had also bought Global Tech funds & got burn by it, I am still holding on to the funds since I don't need the money yet, & as long as you don't sell the funds its only consider as paper loss.

                            Currently I opt for a more diversified portfolio with Asia and Global region. I also have invested in managed account where its managed by fund managers, they mainly help me to buy S'pore stocks & shares. I find this is better & less of a hassel for me as I do not have the time to monitor the stocks & do research on.

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