What should I take note when purchasing unit trusts? Is Franklin US Opportunities recommended for newbies?
New to investing and looking around at the different instruments. Chanced upon Franklin US Opportunities A Acc SGD H1 from DBS website. Comprises of holdings in Apple, Amazon, Microsoft, etc. Understand that for unit trust, there will be sales charge, annual management fee and maintenance fee.
Would like to ask if anyone is holding/have analyzed this, could you please share your experience? Is this recommended for exposure to US markets?
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Discussion (1)
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Generally, for unit trusts, i look at their investment thesis, benchmark, fees, valuation and fund managers.
https://www.franklintempleton.com.sg/download/e...
https://www.franklintempleton.com.sg/investor/p...
specifically for this fund,
they did not beat the index.
PEG and PE are too high for me (overvalued). but the EPS grow still good at 15%.
decent expense ratio (1.81%)
high sales charge. the annualised returns after sales charge is about 3.32%. which is about the same as S&P500.
therefore I do not see why i need to pay high fees, but get similar returns as S&P500 which has lower fees. maybe you will be better off buying IUSG the ETF which is tracking the benchmark used by this fund.
hope this helps.