Eddie asked 9 years ago
Hi,
I came across your site I’m very much attracted to your comprehensive and informative website. Thanx for the wealth of information provided.
I would appreciate it if I could ask a few questions regarding unit trust investing. I’m quite new to this and I have much to learn.
For example, in one fund factsheet, it is stated that the returns since inception is 790.22%
Does this mean that if I invested $10,000 since inception, then the value of my investment is now $89,022?
= 10,000 + (7.9022 X 10,000)
= 89,022
Likewise, the 5-year returns is 165.37%. Does this mean that if I invested $10,000 5 years ago, then the value of my investment is now $26,537?
Best regards,
KCLau Staff answered 9 years ago
Hi Eddie,
From the fund fact sheet, your assumption is correct.
But in reality, there are cost involved in buying unit trust, typically for an equity fund will be about 5.5%.
So your RM10k is technically started on RM 9,450 only.
The result in reality is RM84,125.79.