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Unit Trust

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Investments

Unit Trust

There are unit trusts that can deliver decent returns, so 6% is not an unheard of number. However, whether or not one should invest in unit trusts in the first place will come down to a number of factors, including - Risk appetite - Preference for asset classes (some UTs are in equities, some are in fixed income, others are mixed) - Sector preference (some people like tech stocks and hence tech UTs might be appealing) Analysis of the unit trust also is down to several factors such as - Volatility - Peer to peer comparison - Sharpe Ratio - etc... I presume that your colleague is probably buying from the Navigator Platform when you mention that he bought it from Aviva. What is more important is the actual unit trust that he bought.

Investments

Stocks

Unit Trust

REITs

Darren Chew
Darren Chew
Level 5. Genius
Updated on 18 Jun 2019
There are quite a numbers of good dividend stocks in Singapore. Below are some criteria that you may want to consider when picking dividend stocks 1) Revenue and income growing or stable for the past 5 years. 2) Dividend stable or growing for the past 5 years 3) Dividend Yield is more than 3%. 4) Payout ratio is stable and less than 100%. 5) The company business will still be viable in the next 5 years. 6) Avoid small cap stock for dividend play. Some of the stocks are Capitaland, the 3 banks, SGX, ComfortDelgro, SATS, ST Engineering, Singtel. Just to name a few. Additional point to note, If you have a choice to choose between REITs and Business Trust, do just go only for the REITs. Hope that help.

Investments

REITs

Unit Trust

Darren Chew
Darren Chew
Level 5. Genius
Updated on 15 Jun 2019
These 2 reits are quite different and are not able to compare directly. Mapletree Commercial Trust is considered as a diversified REITS rather than office reit as around 40% - 50% of their revenue is generate from VivoCity. 3 out of 4 of his office building is located outside CBD. It is also one of the few pure Singapore play reits left. Capitaland Commercial Trust have almost all their Singapore office building located in the heart of the CBD. It has also expanded out of Singapore and enter the Germany market. To me, both are very good reits which have strong sponsor that have a global reach. If you can only choose 1 from the 2, based on current market condition, I will recommend Mapletree Commercial Reits as it is a reits that comprise of both retail and office which make it more defensive in nature. Hope that help.

Investments

Unit Trust

Stocks

One key to build a good whole investment portfolio is diversification. As Hariz mentioned, a stock cannot replicate a unit trust. How much you allocate towards unit trusts and stocks should be aligned to your desired portfolio strategy and risk profile taking into account your life stages, etc. There are people that are heavier in unit trusts while there are also others that are heavier in stocks. It boils down to their strategy and risk profile. It will be beneficial for you to think through whats your strategy and risk profile. This will help you to decide your allocation. Aim to build well diversified investment portfolio. A well diversified portfolio as much as one can, should be diversified across the 6 major asset classes.

Investments

STI ETF

Unit Trust

Darren Chew
Darren Chew
Level 5. Genius
Answered on 12 Jun 2019
Why don't you consider buying bank shares instead? As the 3 banks have around 40% to 50% weightage in STI. It indirectly means that when the bank stock move, STI is expected to move in the same direction as them. Next is that STI currently is still below 2008 high, but all the 3 bank stocks had already crossed their 2008 peak. Furthermore, bank stocks give better dividend than STI ETF. One of the reasons why STI underperform banks stock could be that STI comprise of several non-performance stock that drag down its performance. Thus if you would to look at risk and return perspective, bank shares may be a better option than STI in the longer term.

Investments

Stocks

Unit Trust

You're looking at the platform fee, not the fund management fee. Actively managed equity funds would usually have a Fund Management fee of between 0.7-2%. Usually closer to 1.3-1.7%. One such fund would be "United Global Durable Equities Fund". It has historically paid more than 5% dividend p.a on a monthly basis while still having a compounded growth rate of 9.34% per annum after a management fee of 1.75% p.a. Actively managed funds built for specific purposes like these can usually deliver constant strong dividend payouts. And though the primary objective is not for growth, investing in healthy dividend paying stocks will also give you a good chance at achieving a positive return. But some advice, if you're looking at a pure income and reliable investment product, look for bond funds instead of equity funds. They have lower volatility and bonds are literally made to provide a coupon till maturity.

Investments

Stocks

Unit Trust

REITs

First, you need to be an shareholder when it announced the preferential offering. If you are only buying it now, its too late. Next, you will receive a letter from them. It will state how many are you entitled to. The offering is 31 shares per 1000 of holdings. The document will state the ways you can apply for it. iBanking or ATM is the most convenient. For ibanking and atm you just key in the amount that you want to take up and pay from your bank account. You can apply for excess, which will also be deducted from your bank account. Only after the results will you know how much shares you are being allocated and the refunds.

Investments

Bonds

Unit Trust

Thaddeus Tan
Thaddeus Tan, Community Lead at Seedly
Level 6. Master
Answered on 31 May 2019
The Fidelity enhanced reserved fund is an investment fund that helps an individual who doesn't wish to take high risks/has a low risk appetite yet still want decent returns. Coupled with the advisory and investment solutions UOB offers, the Fidelity Enhanced Reserve Fund is supposed to be a low-volatility investment that minimises the risks one faces from market fluctuations while at the same time allowing for potentially attractive yields. For more info, you can check it out here.

Investments

Unit Trust

Sin Ting So
Sin Ting So, Head Of Client Experience at Endowus
Level 4. Prodigy
Answered on 13 May 2019
Unit Trusts are vehicles to gain exposure to a basket of individual securities. They can both be active or passive investment products. For long-term, buy-and-hold investors who are investing without the need for intra-day trading liquidity, unit trusts can be an efficient product (provided you can keep your costs low!) As Hariz mentioned, investing in unit trusts at low cost allows investors to access the funds at the actual value of the fund (NAV).
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