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Many years ago, I bought into a few unit trusts. I recently received reports from two which I have been a unit holder of since their inceptions:
Lost and still losing money. I would have been better off managing my own money.
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38 comments:
I don't believe in unit trust too, after market up and down, normally will lose money at the end. But, they making money whatever the performance. Just stupid logic.
Hi Ah John,
Unless the fund manager is like Peter Lynch. ;p
I stopped buying unit trusts long ago. Realised it is a scam. Lousy fund manager who still gets paid while the rest lose money.
Hi AK,
Unit trusts looks like a plot to cheat money....
I also buy a bit of unit trust about 6yrs back.... till now still losing money... losing money still have to pay management fee.... so stupid...
Best Regards,
Steven
Hi INVS 2.0,
Unless the fund manager is like Peter Lynch. ;p
Oh, I said that already. LOL.
Hi Steven,
Yikes! Today's weather is quite nice, don't you think? ;p
Sigh... Sigh... Sigh...
Hi All
Agree. These fund managers have no interest to increase the value of the unit trusts. When the market falls, the price is down. When the market recovers, the price is still down. What's up?!! They still get paid :(
However, we need to equip our ourselves with skills to manage our investments. More importantly, it is also on how to condition our minds to flow with the market volatility. This is challenging. But with the advancement in internet technology, we should learn the skills to manage our hard-earned money.
why still holding on to these "stupid" funds?
its just a small little pin that pocking you in the skin, just pull it out and the pain will be gone.
Hi tccs,
I agree that being able to stomach market volatility is the hardest thing to do. Internalising this volatility and making our psyche one with the market is a tall order. :)
Hi coconut,
Actually, most of the time, I don't even remember it is there. Too much work to go to the bank to close the accounts. So, I just leave it to receive periodic reminders not to be so stupid again. -.-"
I also got bought Asia top 50 when it was 1st launched at $1, think around 1999, bought went up a bit and then dropped to 70 cents, then 2007 went back up to $1.1x I think and then I quickly sold it.
Buying unit trust is like buying shares, if buy shares and it can not move higher within weeks, time to let go. For unit trusts if can not move up within months time to let go also.
Hi hong twu,
Wah! You punting unit trusts? The cost is too high, isn't it?
Actually, I cannot even remember if it went above $1.00 before or not. Well, from your account, obviously, it did and I missed it. :(
I also got buy asia top 50 when it was launched around 1999, at $1. Then it dropped to around 70 cents I think, and then went back up to $1.20 and I sold off in 2007, after holding for around 8 years.
Buying unit trusts is like buying shares, but timeframe different. If buy shares and can not move up within weeks, I will let go. For unit trusts, if can not move up within months time to let go.
Also, when got profit must sell, because one can never predict the top or bottom, if can then must go buy 4D (1 chance in 9999) or toto (1 in few millions)
you should have been the UOB fund manager.. :D :D :D
Hi AK
Looking at your table, 2 things come to mind.
1) price matters, if u bought a few years ago, profits will be nice.
2) management of this fund sucks. They are coming from the low base in 1998? Wow and they can't make money after 10 years? Any of the better run blue chips are selling at great discount back in 1998.
3) funds has as many restrictions and weaknesses as retail investor, althought they are different. If the fund can't attract new money, are they able to "invest thro the ups and downs" or will they try their best to time market? Which is more difficult? I know I will put aside money every year for investment, so I can somewhat smoothen out the downs and ups, those funds with patchy records, can they replicate even such a simple strategy ??
This fund results is one whereby u do need to be a savvy investor to beat. Buying govt bonds or even leaving money at CPf or buying a 10 year insurance saving plan would beat it.
AK, maybe they should employ u to be the fund manager, go get accredited ... Haha
Hi tostubi,
Unfortunately, I didn't and still don't have the professional qualifications for the job. I heard they pay well too. :(
Hi Mike,
I think most of my investments, whether in stocks, REITs or property, which I got into a few years ago outperformed the funds. So, putting more money into these funds then would still be a bad idea, relatively. ;p
Oh, well. This is one of those things I just have to learn and learning it the hard way means I will remember it better, I hope. -.-"
LOL, pay to lose money, it's the truth most of time.
Hi Ah John,
Wah! Rub salt to wound! Ouch!
AK, i started off with unit trust, conned by the "low risk, diversify, cheap entry" tagline. Still in thw red, ranging from -30% to -40% since 2008. Just like a turtle not seeing the sky for 5 years, and probably would have died of suffocation.
I started selecting my own stocks once i gathered a larger pool of money, and luckily it works well so far.
So, yes, unit trust is a scam that only fattens the managers. Ponzi.
Hi Howyuan,
Ponzi? Oh my... Er... Tonight's weather quite nice hor? ;)
I like your turtle analogy. hehehe... :)
Well, I can share something quite safely here though. Do you know that the bank takes 4% from us right away when we buy a unit trust? 50% goes to the person (AKA banker) who sells it to us. Not a bad deal for them.
Actually I don't see a point in unit trust. The performance generally mirrors the general market. What's more, it's annual management fees are so high, some exotic funds charge as high as 2.5%!
I'll rather stick to ETFs.
Hi AK,
you need to do a fund switch along the way.
mml
AK,
Too bad ETFs were not common during 1999.
If not, it would be interesting if we have someone sharing their real life experience with the relative performance between active and passive managed funds ;)
It's more flesh and blood than backward looking statistics...
Hi Zi Rong,
Indeed so. We have many more choices in recent years. More sensible ones too. :)
Hi mml,
Fund switches sound like more money expended in fees. Nah, I switched out of unit trusts and I don't think I will be switching back. ;p
Hi SMOL,
Yup, people are luckier these days. Well, if they know how to take advantage of certain developments. :)
To be fair, there was a time when unit trusts were useful in growing wealth and my experience with them using my CPF-SA during the GFC is what I am referring to. ;)
Unless the fund manager is ASSI!
You are not alone. I was convinced to buy a unit trust from prudential 7 years ago. As of today, it is still losing lower than my purchase price 7 years ago.
AK,
I curious.
If someone bought ETFs now, and 10 years later don't make money, I wonder if that person will feel being "conned"?
Hi Garfield,
... and hope that AK stays lucky. ;p
Cham... MAS going to regulate my blog liao. -.-"
Hi PSTan,
Yes, we must know what is good for us. Really.
You might have read this:
Know what is good for us.
Sigh...
Hi SMOL,
It could certainly happen. Look at how the Americans lost 10 years worth of accumulated wealth during the GFC. The index basically plunged to where it was 10 years before. Of course, there is the famous Japanese "lost decade" too. -.-"
What about property? That went the same way as the stock market...
It shows how important it is to have cash and some precious metals as assets. Who knows what would happen next?
You are right. Most unit trust and fund managers are cheaters, or downright incompetent.
Hi Tien,
Er... I didn't say anything to that effect. I think you were referring to someone else? -.-"
Frankly speaking, if you able to blog or research about investments, there is some level of awareness that put you above unit trust investments. They are basically for those who aren't and earning just FD or worst ... cash only. And wanted to do some level of investment with their help. Performance wise, there is a lot of room to be desire.
So for people who buy unit trusts the arrow point to yourself on why you are still relying on Unit Trusts which do not meet your needs.
Hi Cory,
I wonder why I blogged about this at all. ;p
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