The performance of Unit Trust Funds in 2014 offer some interesting insights.
The Best and the Worst
The Top 10 performing funds returned in the region of 49% to 67% (rounded). The Bottom 10 funds on the other hand returned -28% to -44%.
The Top 10 performing sectors returned 21% to 45%, while the Bottom 10 sectors returned -9% to -43%.
The risk-reward seems to be favourable for the investor, but clearly, the risks are also high.
BRIC
The infamous Brazil, Russia, India, China quartet was all the range a few years ago and gave rise to the acronym BRIC. So how did these infamous 4 performed in 2015?
Well, China and India appeared among the Top 10 best sectors. Russia and Brazil in the Bottom 10! The score was 2-2. Looks like a draw.
Diversification across markets and sectors seem like a smart thing to do to manage risks. ......
For those funds, must at least keep for 5 yrs to make money. I invested in a few monthly passive incomes fund like GEM, Schrodder Asia Income Fund, East Spring M Fund, Alliance US High Yield. They r great in paying monthly dividends, the only one in the money is the Schrodder. The rest, the unit prices are all under water. Not forgetting that I hv paid the bank my com. But over the longer term the passive incomes cover the hammered down prices with some profits as a whole…
Hi Joyce,
Thanks for sharing. I don’t come across many who buy UTs for dividends. Most that I have come across buy for capital gains like the BRIC UTs that the author mentioned. Can I ask how much dividends you are getting after deducting the admin fee? If it is comparable to REITS, ETF etc, it might be a viable option to park some funds into it
Considering that the NAV went below your entry, and this took place over the longer term, would seem like the funds are just taking your own money to return to you as ‘dividends’!
If you’re looking for actual dividend payout (and not reinvested) from Unit Trust funds, look for those with a longer history and examine what happened to their NAV over time. There are a few (very few) good possibilities.
I don’t fund those bond ones to be viable.