Invest
Tough Times For SGD Unit Trusts
By Living Healthy, Staying Wealthy  •  April 16, 2011
MAS has recently announced to re-center the SGD currency band to allow the pace of appreciation to continue given the rate of inflation.

As a result, unit trusts denominated in SGD and investing in markets overseas whose local currency may not appreciate as much compared to the SGD will see their returns badly affected.

2 ways to minimize this foreseeable risk is to invest only in the Singapore market; Or select funds that have a SGD- Hedged version. This is to ensure any possible returns achieved by the fund will not be eroded away by forex conversions.

This is especially so for fixed income funds where the volatility of the forex market has overshadowed the returns from these funds in recent years....
Read the full article
By Living Healthy, Staying Wealthy
Aaron Lau is a Independent Financial Adviser licensed by the Monetary Authority of Singapore to provide financial advice to individuals in Singapore. The main reason he is in the Financial Advisory industry is to share what he has learned after studying and comparing the various insurance and investment instruments in the market. He strongly feels that proper, quality financial planning is important to all individuals and sincerely would like to reach out to help as many as possible.
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance