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Introduction
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How do you choose the right unit trust for you?
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7 TIPS ON INVESTING IN UNIT TRUSTS
- Compare returns to its relevant index
- Watch out for high fees
- Don’t time the market
- If you choose to invest in unit trusts, hold for the long term
- There is always a risk of losing money
- Don’t forget to diversify your investments
- Remember, unit trust companies and consultants are there to sell you a product. It’s up to you to do your own research
- Quiz: Unit Trust
Step 3: Look at fund performance
To understand how well (or not) a fund is managed, it’s best to look at the fund’s 3 or 5-year performance.
For example, the chart below shows the 6-month Net Asset Value (NAV or basically, the price) of a sample unit trust fund. It shows that overall, the fund has performed well.
Source: Morningstar
However, if we take a look at the 3-year NAV chart, we could say that the fund hasn’t performed well.
Source: Morningstar
How do you find this information? Use Morningstar’s Fund Tools , go to Funds to Explore and click on the Performance tab.
Again, what you’ll see are six columns, but the only one you really need to focus on is the last one: 3 or 5 Year Annualised Return. Clicking on either of these columns will sort it for you in order of performance so that the highest numbers are right at the top of that list.
Here’s a simplified version of the information. You’ll see two pieces of key information: the risk profiles of funds and the returns those funds have made over a 3 and 5-year period. Click here.
| Fund Name |
Risk Profile |
3 Year Annualised Return, MYR, % | 5 Year Annualised Return, MYR, % |
| AmChina A-Shares |
High |
16.85 |
24.84 |
| TA Global Technology |
High |
19.71 |
17.07 |
| Manulife Investment – India Equity |
High |
14.86 |
16.41 |
| Franklin US Opportunities USD |
High |
17.25 |
15.74 |
| CIMB-Principal Greater China Equity |
High |
18.48 |
15.66 |
| PB China Pacific Equity |
High |
15.87 |
15.41 |
| Public China Select |
High |
15.77 |
14.07 |
| Asian Strategic Orient A |
Low |
10.78 |
13.98 |
| Asian Strategic Orient B |
Low |
10.78 |
13.98 |
| Asian Strategic Long Term A |
Low |
10.48 |
13.86 |
| Asian Strategic Long Term B |
Low |
10.48 |
13.86 |
| RHB Asian Real Estate |
High |
15.91 |
13.51 |
| Manulife Investment US Equity |
High |
14.94 |
13.47 |
| RHB China-India Dynamic Growth |
High |
12.62 |
13.45 |
| Manulife Investment Asia-Pacific REIT |
Mod |
12.26 |
13.37 |
| Public Far-East Alpha-30 |
High |
14.82 |
12.68 |
| RHB Big Cap China Enterprise |
High |
13.21 |
12.61 |
| CIMB-Principal China-India-Indonesia Eq |
High |
14.64 |
12.5 |
| Eastspring Inv Dinasti Equity |
High |
15.58 |
12.5 |
| Advantage BRIC |
High |
16.91 |
12.38 |
| PB China ASEAN Equity |
High |
13.11 |
12.14 |
| Manulife Investment Greater China |
High |
15.53 |
12.02 |
| Pacific Focus China |
High |
15.19 |
11.61 |
| AmPan European Property Equities |
High |
8.31 |
11.53 |
| CIMB-Principal Asia Pacific Dynamic Inc |
High |
14.06 |
11.09 |
| Franklin US Opportunities MYR |
High |
15.25 |
11 |
| Public China Titans |
High |
15.51 |
10.85 |
| CIMB-Principal Global Titans |
Mod |
10.87 |
10.72 |
| Public Tactical Allocation |
High |
11.35 |
10.61 |
| CIMB-Principal Asian Equity |
High |
11.93 |
10.59 |
| AmGlb Property Eq |
Mod |
8.06 |
10.51 |
| Manulife Investment AsiaPac ex Jpn RM |
High |
10.53 |
10.31 |
| PB China Australia Equity Fund |
High |
11.3 |
10.2 |
| AmAsia Pacific REITs B MYR |
– |
7.71 |
10.03 |
| Areca EquityTRUST |
High |
13.7 |
10.02 |
| Public Far-East Select |
High |
12.17 |
9.79 |
| Public Far-East Dividend |
Mod |
10.81 |
9.78 |
| Manulife China Equity |
High |
10.84 |
9.56 |
| AmCumulative Growth |
Mod |
12.28 |
9.41 |
| Affin Hwang Absolute Return II-MYR |
Mod |
9.01 |
9.36 |
| RHB Leisure, Lifestyle & Luxury |
Mod |
8.19 |
9.35 |
| Public Global Select |
Mod |
11.14 |
9.33 |
| Advantage Asia Pacific ex Japan Div |
Mod |
13.2 |
9.16 |
| Public China Ittikal |
High |
11.77 |
8.96 |
| RHB Asian Income |
Low |
7.94 |
8.6 |
| Affin Hwang Wld Ser Jpn Growth MYR H |
High |
9.72 |
8.52 |
| Eastspring Inv Asia Select Income |
Low |
9.08 |
8.51 |
| Affin Hwang Select Asia ex Jpn Opp |
High |
11.26 |
8.4 |
| Eastspring Inv Global Emerging Markets |
High |
12.76 |
8.36 |
Source: Morningstar. Data is correct as of 27/05/2019
