Recap of Part 1
In Part 1 of this article, we analyzed how Award Winning Funds in 2017 under the "Malaysia Equity" categories are performing as of today as well as compare the funds against the rivals in the category.
We concluded in Part 1 that investing into Award Winning Funds under the Malaysia Equity category is not the best strategy for investor to utilize when it comes to selecting fund to invest into.
Check out the full post for Part 1 HERE
Part 2 Analysis
For part 2, we analyze how Award Winning Funds in 2017 under the "Mixed Assets" categories perform. Using the similar approach, we will try to answer the following:
- If one was to invest into award winning funds in 2017, what would be the performance (cumulative returns) of the funds as of today?
- Are those award winning funds in 2017 remain as leader (the best) as of today or other rival funds within the same category have better result?
We will derive the following outcomes in order to answer the 1st Question:
- The cumulative returns (%) of the award winning funds from 2nd March 2017 (a day after result was announced) to 1st June 2022
- The estimated annualized return of the award winning funds
- Are the estimated annualized return of the award winning funds is higher than 5% ? Otherwise it would be wiser to invest your money in ASB, ASNB or just leaving it in EPF
Derived outcomes of 2017 Lipper Award winning funds under the group of "Mixed Assets" for 3 Years and 5 Years
Clearly from the table above, 71.4% of 2017 Lipper Award winning funds have performed poorly over the past five years (5 out of 7 funds under the "Mixed Assets" categories). Note: Poor performance in this analysis is defined as less than 5% in annualised returns.
2. Are those award winning funds in 2017 remain as leader (the best) as of today?
The analyis for Question 2 comes as no surprise with rival/competitor funds under similar categories of the 2017 Lipper Award winning funds performing multiple times better.
We also observed that annualised returns of rival/competitor funds for all categories exceed the 5% benchmark. In other words, investing into rival/competitor funds have better risk vs reward outcome.
Similar to the outcomes in Part 1, investing into award winning funds under "Mixed Assets" category also produced similar fate as award winning funds under "Malaysia Equity" category. We can safely conclude that performance of majority of award winning funds tend to degrade after garnering alcolades (approximately 70% and above).
As an added bonus, we have another hypothesis which we intend to validate and published under Part 3, so stay tune and Follow our Facebook for updates!
Cheers and Happy Investing
No comments:
Post a Comment