I never understood fund sheets. There is so much to learn about investing in stocks. How much should I know about an investment product before I invest in it? - Seedly
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Anonymous

Asked on 25 Sep 2018

I never understood fund sheets. There is so much to learn about investing in stocks. How much should I know about an investment product before I invest in it?

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Soon Xiaohui
Soon Xiaohui
Level 6. Master
Updated on 05 Oct 2018

This is an interesting question.

Sometime even after we enrolled a course for it, we may still ask have we learn sufficient?

What I usually share with my friends & clients on investment - Always Learn to ask yourself questions. For example:

  • what are the costs? are the costs transparent? Is this a purely investment tool? etc.

You may be surprised that Some people cant differeniate what is unit trust & investment linked policy.

  • how do I set up my account? is my account gonna be trust worthy? Can I withdraw easily?

This is extremely important if you are investing into offshore products or a friend has introduced you into an investment scheme (which may be a scam). This step is extremely important as we do not wish to fall into scam while learning more about any form of investment

  • what are the concern(s) of this investment product/tool?

Can I answer/address to my concern(s)? If yes, it means you actually understand the product/tool to a certain extend.

  • Am I comfortable with this investment?

If no, please avoid investing. Always invest only when you feel you are comfortable with and you are ready to lose this amount.

And of course if you have attended or going to attend classes, you must learn how to identify/apply what you have learned. Experience does help in investment. This is how we avoid being a risky investors.

Additionally when someone told you, it is a guaranteed high % per month or per year, you should learn to say no to it unless these terms are documentated legally, however in reality such products rarely exists.

Also if you have time, maybe you can read this post https://www.facebook.com/groups/seedlyfinance/permalink/1827146314243393/

I did a step by step how to read on a fund sheet in the comment section. Anything unsure, feel free to drop me a text.

Hope the above step by step questioning helps you in your investment journey. :)​​​

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HC Tang
HC Tang, Financial Enthusiast, Budgeting at The Society
Level 9. God of Wisdom
Answered on 25 Sep 2018

We all learn as we go along, so the best way to start is to enrol in school if possible. With the right proper guide and technique, it can save us a lot of unnecessry losses and pain.

Read about all the courses here shared by Seedly:

https://blog.seedly.sg/singaporean-investment-courses/

Most of all, read honest review by ex students to find out if is good yourself:

https://seedly.sg/reviews/investment-courses

Hope it helps to start a great learning journey! As long as we keep learning, we'll be there :)

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If you want to invest in stocks but have difficulty understanding fund sheets, an alternative would be to invest via a robo-advisor. In summary, you just need to open an account and fund it, and the robo-advisor's software will do the investing for you. You may refer to the following Seedly reviews to find out more:

https://seedly.sg/reviews/robo-advisors

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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 9. God of Wisdom
Answered on 06 Oct 2018

Fund sheet, for an unit trust? Stay away from this product unless you really like to pay lots of fees and earn paltry or negative returns. I'd apply the same logic towards retail wealth management products out there. You need to pay a lot to get to your desired financial goal. Let's say your desired goal is to attain a million dollars before retiring. Try asking your financial adviser to structure something for you and see how much money and time it'll cost.

Do you really need to read a financial report before you invest in a stock? Perhaps a simpler approach. You only need to know the right groups of stocks to invest into: dividend aristocrats and dividend kings. Find out which stocks these are, why they are called aristocrats and kings, what are the current sentiment surrounding them (hint: Seeking Alpha's analysis sections), and buy them at a discount to current price (sell put options).

Ask yourself why you want to invest. For your retirement nest egg? Or to give your family a better lifestyle? Know your whys (reasons), then identify your hows (choice of investment instruments). Then focus on mastering your chosen one instrument to achieve success. Don't diversify.

All the best in your investment journey.

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Jay Liu
Jay Liu, Sleepyhead at Land of Dreams
Level 7. Grand Master
Updated on 07 Jun 2019

Read and read. Maybe take an online course/youtube on accounting to learn how to read financial reports. The basic I think 1 should know will be the commission fees, fund managers managing the product, use fundamental analysis to determine whether is it good to invest in, is the price over valued. Most importantly is to read news on news article or simply at SGX to see their outlook/ acquisitions.

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Jay Liu
Jay Liu

26 Sep 2018

Nope. I'm an accounting student. But can search up on YouTube like balance sheets.
Leong Wen Fong
Leong Wen Fong

26 Sep 2018

Haha ok thanks bro
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Nicholas Chan
Nicholas Chan
Level 6. Master
Answered on 25 Sep 2018

Know the costs, the downside & the upside.

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