Fundsupermart just published their latest list of recommended unit trust funds. They are currently running a promotion with just 1% sales charge. That’s 50% discount on the transaction fees.
With over 550 funds from 39 fund houses, choosing the right fund can be daunting. That’s why I always receive emails from readers asking which fund is worth investing. I simply can’t answer you because how am I going to recommend any fund without researching all 550 funds? We should leave this job to the expert, who are paid to do the research full time.
Evaluating Funds’ Performance, Expense Ratio and Risks
Fundsupermart.com (FSM) has released their Recommended Funds 2010 list by evaluating the funds in areas such as Performance, Expense Ratio and Risks.
They give Performance a 40 – 60% weighting since the profit-making abilities of the fund manager is the most important factor. The returns are evaluated against benchmarks and peer group averages within similar sectors and regions
FSM also evaluates the returns over various time periods, including both good and bad times, to check for performance consistency. Funds have to be at least 3 years old before FSM considers them.
FSM places a weighting of 20-30% each in Expense Ratio and Risks in order to evaluate whether the higher fees and additional risks are commensurate with returns.
Every recommendation is supported by reasons
You can head over to this list of recommended funds. FSM elaborate the reasons they recommend a particular unit trust fund.
For example, they recommended AmDynamic Bond because:
- AmDynamic Bond emerged as the top performing fund among its peers with a five-year annualised return of 9.9% (from end March 2005 to end March 2010) as compared to an average annualised return of 4.2% within the same period.
- The fund made the highest cumulative returns over the one-, two-,
- three-, four- and five-year periods in its category, as at 31 March 2010.
- The fund also outperformed its benchmark, RAM Quantshop All MGS Index over the past three years. Its cumulative returns over the one-, two- and three-year periods were 10.5%, 19.0% and 23.6% respectively, significantly higher than its benchmark’s return of 2.5%, 7.7% and 10.4% respectively.
- In addition, its expense ratio is reasonable at 1.19% (as at 31 January 2010), which is lower compared to the average expense ratio of 1.32% against its peers.
How to invest unit trust with Fundsupermart?
This article is not to be construed as an invitation or solicitation for the subscription, purchase or sale of any fund. Investments involve risks. Investors should read the fund’s prospectus and if necessary, consult with financial or other professional advisers.