Unit Trust

[HaveANiceDay]

Originally Posted by yobyella

Wow! I wish to know more abt the gains and the risks. Who should i get in touch with?

Go MBS or RWS, gains also not bad

[nitecrawllerr]

Originally Posted by 22mchub

True! Guys pm me for investment lobang. Legit company legit funds been getting my dividends monthly.

Unit trust? End up paying management fees, capital not guaranteed. They can say projected yield tis and tat. Hmm.....

[nitecrawllerr]

Hours ago approached a Fin Exe on investments. Introduced me unit trust. Projected yield low side 5% high side 10%. Recd monthly payouts. Capital not guaranteed too.

[cutecuteboy]

Originally Posted by nitecrawllerr

Hours ago approached a Fin Exe on investments. Introduced me unit trust. Projected yield low side 5% high side 10%. Recd monthly payouts. Capital not guaranteed too.

Sales charges?
Banks charge as high as 5% while some online platforms can offer 1% or lower.

Do ask about these charges

[atee]

So many charges. Yield and capital also not guaranteed. Yet have investors ploughing into it? Risks taker.

[22mchub]

Must make sure all these risk are low risk. The one i invested capital not garunteed but sales charges is a one time 3%. Dividend monthly and low risk. Can consider bro. Rather than putting the money in the bank.

[yobyella]

I am sure theres management fees incurred. Cant be just one time 3% chgs only.

[nitecrawllerr]

Looks like nowadays alot of financial consultant introduce Unit Trust. Monthly payout till kick the bucket but capital and projected yield not guarantee.

Lets say i dump 100k at 1.05 unit trust. Collect my monthly payouts $600 for 10yrs. Lets say 10 yrs time the price still remain 1.05 that means my profits already collected $600 x12 x10. Not bad ya. Of course question remain will my capital 10yrs time up or down? Risk is there.

[Dirt]

Just for sharing, you may want to checkout those unit trust in fundsupertmart with high divident yield. i with them more than 10 yrs.

[charcoalfilter]

Originally Posted by nitecrawllerr

Hours ago approached a Fin Exe on investments. Introduced me unit trust. Projected yield low side 5% high side 10%. Recd monthly payouts. Capital not guaranteed too.

i don't recall unit trusts/mutual funds having "projected yield" and high side unless it is an investment link plan which offers unit trusts. If so, please forget about taking on an investment link plan even if it has no insurance charges.

if you are of a moderate risk level, you can't ask for a high yield and returns because this is not how the real world works.

Imagine having a car, which has the looks, class & performance of a lambo/ferrari, fuel efficiency of a toyota and price point of a toyota too. Does it exist? No. If it existed, it is too good to be true.

if your risk level is not moderately aggressive or aggressive, ideally you should hold the unit trusts for around 2-3 years. That is why it is always critical to see what and who the unit trusts invest in e.g. what sector & what companies. Have to do bottom up and top down approach. Then zoom into the respective companies then their earnings report and the focus of the company within the next few years.

Typically, unit trusts are just like equities. Capital appreciation or dividend yielding (fixed income) funds feature. No funds can do both very well in both aspects therefore i always split money into 2 different funds. In some exceptions. there are still funds who do well in both but the tendency is that they are a relatively young fund and is a small cap fund (i.e has less than $300million in the fund) or that the NAV of the fund is too high and you do not get much dividend as dividend yield is based on per NAV and not the amount of money you have put into it.

Expensive ratio (annual management fee) and redemption fees are also something you should look at when investing in unit trusts.

Everything we do in investing comes with a risk, therefore we gain better returns than fixed deposits and high grade bonds. If not, a capital guaranteed endowment plan will suit your needs much better.

I hope this helps and hope the financial executive do not lead you to 10% returns if you do not know the risk you are taking on.

Cheers!

[nitecrawllerr]

Bro charcoal. Tks for the input.

[Madcat]

Originally Posted by charcoalfilter

Everything we do in investing comes with a risk, therefore we gain better returns than fixed deposits and high grade bonds. If not, a capital guaranteed endowment plan will suit your needs much better.

I hope this helps and hope the financial executive do not lead you to 10% returns if you do not know the risk you are taking on.

Cheers!

Very well said . The higher the interest rates the higher the risks .

[sionglim]

now tencent is bigger than alibaba.
Base on mkt share value.
Hk china chase up tencent

[Sorbxe]

Originally Posted by nitecrawllerr

Looks like nowadays alot of financial consultant introduce Unit Trust. Monthly payout till kick the bucket but capital and projected yield not guarantee.

Lets say i dump 100k at 1.05 unit trust. Collect my monthly payouts $600 for 10yrs. Lets say 10 yrs time the price still remain 1.05 that means my profits already collected $600 x12 x10. Not bad ya. Of course question remain will my capital 10yrs time up or down? Risk is there.

$600 x 12 x 10 = $72,000 is Not bad? Actually it sucks! Let me tell u why.

At an inflation rate 2.7% according to Singstat

Today’s $100K is worth div (1.027 ^10) = $76,611.80 in today’s dollars. In layman’s terms your $100K can only buy $76,611.80 dollars of today’s goods in 10yrs time.

Again that is if Singstat didn’t lie, cos a plate of chicken rice today cost $3.50-4 while a bigger plate costs only $2 @10years ago...

So they give u $27,000 (don’t forget the 1st $600 is only worth $460 at end of 10yrs - but I assume you invest it wisely to breakeven)

$76,611.80+27,000
=$103,611.80

Or a mere 3.6% yield

But really if we did nothing with the $600 every month. The $27,000 is then only worth $21,000 approx. then u end up getting back:

$76,611.80 + 21,000
= $97,611.80 or a loss of 2.4% = $2,388.20

I read here that some Bros will use their investment yield to fund their chionging FL activities. It can probably by you CAT150 once a week.

But 10 years time, that amount $600 can buy maybe only 2 sessions a month.

It also means if you spent $10/day on meals, in 10yrs time you can only spend $7.66 on a meal if the same meals costs inflates at only 2.7% pa

[supershaft]

Play DBS shares.. buy on dips, esp 2 consecutive days of dips, and lock in once there is some profit.

Standby ammo for 2 average downs at 30% off the last price u buy at, just in case market goes down..