Anonymous

15 Nov 2020

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General Investing

For unit trust, should one invest in ‘hedged’ class? TER is higher, return lower. For investment period of 20 years, does currency risk matters for investment in UT?

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Samuel

15 Nov 2020

Hedged share classes would typically have the same fees as the base currency share class. The difference in performance would arise from the hedging cost between the 2 currencies. Main benefits of investing in hedged share class (assuming SGD share class in this example) would be for convienence and also reducing any short term FX volatility in the market. But yes, you are correct in saying that over a long investment period (20 years), FX risk would smoothen out gradually

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I have invested in a few unit trusts and currently have gained about 20% in returns. During the covid19 situation, it went down to about 6% in returns. I thought of selling it and buying again to 'secure' the profit. Has anyone done it?

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