Wednesday, 2 January 2013

Top 10 Best Performing Unit Trust Funds As of 1st Jan 2013

Let's start the brand new year with a peak into the performance of Unit Trust Funds as of 1st January 2013.

Funds are divided into 4 Categories of Investment each ranked according to their 5 Year Annualized Returns.

Category : Equity Malaysia (Click to Enlarge)

1. MAAKL-HDBS Flexi Fund leads the pack for their 5 Years Annualized Returns of 13.85%
2. For 1 Year Performance, AMB Dividend Trust Fund packs a whopping 23.71% returns.
3. The top 5 funds in the Category of Equity Malaysia each provides more then 10% in returns and reflects the high risk nature of investing in Equity.

Category : Asia excluding Japan (Click to Enlarge)

1. Due to the volatility of the economy among Asian countries especially in China, we see the funds in this categories struggling to perform. Only 3 Funds managed to post positive returns in its 5 Year Annualized Returns while the remaining 7 are in the negative zones.
2. As the economy picks up, you can see that the 1 year Returns for most of the funds are in the double digit zones.
3. Based on the news I've read, growth in China is expected to improve for 2013 and thereby lies the opportunity for investors to make a short term investment of 1-2 years only.
4. I would advise against having a long term investment in funds from this Category due to its volatility. In fact I believe many investors become frustrated with Unit Trust Investment due to their first purchases are from funds in this Category. Remember always to read the prospectus before investing. Never blindly invest just from listening to agents.

Category : Greater China (Click to Enlarge)

1. The funds in this Category invest purely in China. Once again, the 5 Years Annualized Returns from these funds are all in the negative zone.
2. One year returns are in the double digits indicating a recovery in economy of China. For 2013, we expect the recovery in China to continue and I believe these funds would also post profitable returns for 2013.
3. Invest as part of your portfolio diversification and if you have extra funds.

Category : Fixed Income - Malaysia (Click to Enlarge)

1. The safest as always is to invest with Fixed Income funds. The funds above are mainly invested in Bonds offered in Malaysia only.
2. Sitting at Rank 1 is AmDynamic Bond with a 5 year return of 8.66% Annualized. Unfortunately this fund has reached its fund size limit thereby stopping all additional investment from investors. Cry not as AmInvestment has launched a similar fund called AmTactical Bond which supposedly would be managed by the same Fund Managers that are currently managing AmDynamic Bond.

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