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Anonymous

09 Mar 2020

Robo-Advisors

Is it a good time to invest in Unit trusts?

Prior to this correction, I already have plan to invest my cpf-OA through endownus, market is undergoing correction now, is this same as to the unit trust as well? Is it a good time to invest my cpf fund now?

Discussion (4)

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As market is extremely volatile now, I would suggest to DCA your investment by splitting your money into few portions and buy in with every dip (5% or 10%). For unit trust, you may want to know the management fees they charge and sometimes it can be quite high and wipe out your gain.

Shengshi Chiam, CFA

02 Mar 2020

Personal Finance Lead at Endowus

Hi Anon!

Since the underlying assets in the Endowus unit trusts are still equities and bonds, they will be affected by the recent market correction. My Endowus CPF OA portfolio has turned from a decent gain to a -7% losses within the last 2 weeks, and all of this is within expectations.

Rather than trying to time the market, you may want to split up your investments across a longer period of time. Depending on your salary and whether you have a housing loan, you can invest a thousand dollars a month through a regular savings plan with us with no effort at your end. That will allow you to ride out market volatility while you remain invested throughout

Pang Zhe Liang

29 Feb 2020

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

Market risk cannot be diversified. As a result, most investments will ride through the same waves.

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