Unit Trust

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Unit Trust
  • Asked by Joel Pang

    Yu Qian, Austin
    Yu Qian, Austin
    1 Answers, 1 Upvotes
    Answered 4d ago
    In Singapore, there is an index fund : lion global infinity US 500 stock index fund, either SGD or USD. It is said to track SP 500 in USA. Domicile is in Singapore. Fee is around 0.45% (can’t remember exactly, sorry) You may try to buy it from broker (online brokers fundsupermert, DollarDex, etc impose lower fees or no fees). Buying patten can be one time (if you time the market) or Make it as Regular Plan ( just giro by authoring the broker) Happy researching. Also, previous comment to buy from Ireland is worth considering too. You will just need to consider 1. Fund fees 2. Broker convenience and fees 3. Capital gain tax 4. If not in SGD, there is a currency risk
  • Asked by Anonymous

    Sandra Teo
    Sandra Teo

    Top Contributor (Feb)

    102 Answers, 156 Upvotes
    Answered 5d ago
    Hedge fund is a pooled investment structure set up by a money manager or registered investment advistor. The pooled investment structure is either a limited partnership or limited liability company. Hedge funds like mutual funds are pool of underlying securities. The hedge fund is operated by a manager who invests money into different assets to achieve the fund's goal. Depending on the objectives or goals, managers will adopt different strategies such as invest in "lony only" equities etc. Generally, hedge funds aim to make money despite the market fluctuations. In other words, hedge fund managers are similar to traders. Hedge funds are usually only available to accreditated investors unlike ETFs that are available to all investors.
  • Asked by Anonymous

    Richard Woon Tian Jun
    Richard Woon Tian Jun

    Top Contributor (Feb)

    93 Answers, 148 Upvotes
    Answered 1w ago
    Honestly if either one is fine - ETFs provide the liquidity that low cost index funds don't provide, since ETFs trade like stocks while index funds only allow you to trade at the end of the trading day. Not only that ETFs barrier to entry are lower - you can get a share of S&P ETF (SPYDR) for around 276 USD, while the Vanguard 500 index fund investor class min. investment amount is $3,000 USD. So if you have less than a 3000 and wish to track the market index and have a fully diversified portfolio, then ETFs will be your only option to do so. However, index funds usually allow shareholders to efficiently do dividend "drip investments" meaning that you can automatically reinvest your dividends that you recieve back into the fund, commission free. Compared to an ETF, this means that if you are unable to have equivalent dividend payout to buy a share, you'll have money lying around not working for you, but index funds trump in that aspects. So: if you have enough capital, go low cost index fund, put auto reinvestment of dividends, and wait for your money to grow for you. ETFs require abit more micromanagement with the dividends and commissions, but it is a easier place to start with lower capital.
  • Asked by Anonymous

    Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent

    Top Contributor (Feb)

    355 Answers, 600 Upvotes
    Answered 2w ago
    I use mutual funds for better risk adjusted returns or for higher than index returns. So i judge them based on these indicators. Did they take less risk to achieve said return than the benchmark, or similar or slightly higher risk for proportionately higher return than the benchmark.
  • Asked by Anonymous

    Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent

    Top Contributor (Feb)

    355 Answers, 600 Upvotes
    Answered 2w ago
    Just a little correction on Zann's answer: There are actively managed ETFs, and passively managed UTs as well. The main difference is that UTs are open ended (always open to new subscriptions) and ETFs are closed ended (bought and sold between holders of the ETF, and initial units were created during IPO).
  • Asked by Anonymous

    Zann Chua
    Zann Chua

    Top Contributor (Feb)

    103 Answers, 143 Upvotes
    Answered 2w ago
    Hello! You can look at; 1) Alpha It is the measure of an invesment's performace on a risk-adjusted basis. the higher the alpha the better. 2) Beta It is a measure of volatility of a security or portfolio compared to the market as a whole. Conservative investors who wish to preserve capital should focus on securities and fund portfolios with low betas while investors willing to take on more risk in search of higher returns should look for high beta investments. 3) R-squared It is a statistical measure that represents the percentage of a fund portfolio. Mutual fund investors should avoid actively managed funds with high R-squared ratios, which are generally criticized by analysts as being "closet" index funds.
  • Asked by Anonymous

    Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent

    Top Contributor (Feb)

    355 Answers, 600 Upvotes
    Answered 2w ago
    Yes, what you're looking for is better risk adjusted return and diversification for capital preservation especially when you're closer to your retirement year as well. I'll also look at building up annuity payouts to form a baseline for retirement needs.
  • Asked by Zareth Lim

    Charmaine Ng
    Charmaine Ng, The Code Breaker at @ Every Chye Peng Stall.
    69 Answers, 162 Upvotes
    Answered 3w ago
    Mutual fund: wealth manager with team of analysts; usually comes with higher costs. They pick stocks and successful investment relies heavily on the skill sets of these teams so there's the risk. Comes with annual management fees usually. ETF: Exchange traded fund is basket of funds that comes with lower costs. Also usually have 24/7 updates when you use roboadvisors. Takes out more human biases.
  • Asked by Natalie Huang

    Victor Chng
    Victor Chng, Co-Founder at Fifth Person Pte Ltd
    104 Answers, 126 Upvotes
    Answered 4w ago
    Hi Natalie, I personally don;t buy unit trust so I may not the right person to answer this question. You may want to check out fundsupermart or Philip. I think they should be quite competitive in term of unit trust.
  • Asked by Anonymous

    Yixiong Chang
    Yixiong Chang
    205 Answers, 268 Upvotes
    Answered 3w ago
    What platform are u using for the UT rsp? The 'one time' 0.5% i believe is the sales charge, and it should apply to all subsequent investment amount as well (therefore it will be the same for the etf rsp u mentioned). On top of that, UT have a higher management fees as it is an active fund. According to statistics, UT on average in the long term will underperform passive index funds. In 2007, Warren Buffett made a $1 million bet against Protégé Partners that hedge funds wouldn't outperform an S&P index fund (at the end of 10years), and he won. To add from Tony Robbins "When you own an index fund, you're also protected against all the downright dumb, mildly misguided or merely unlucky decisions that active fund managers are liable to make". Unless u fully understand which sectors/direction u want to invest in, it might be better to stick to an index fund. As Buffet advises, on average one will be better off investing in a broad base low cost index fund for the long term compared to an active fund. That aside, there are platforms (like poem's, dollardex) that offers zero sales charge(for most funds), zero platform fee. If u want to look at UT, i would suggest u look at these low cost platforms.
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