I last wrote about online unit trust investing in this post.
I have been using Phillip's eUnitTrust portal to invest in unit trust. I like it because of I can do everything online and the service charge is as low as 0%~2% only. I must admit I am pampered.
Low service charge
As a financial planner, I also encourage my clients who are internet and investment savvy to invest through eUnitTrust. The first thing they can save is on the service charge. As investor, we all realized investment return can be lowered due to upfront service charge. The lower the service charge, the higher the return.
Example:- Let's say ABC funds' one year performance is 10%. If service charge is 5.5%, an investor's net return will be 4.5% only whereas if service charge is 2%, that investor's net return will revise up to 8%. That's a lot of different.
Rule of 72 tells us how many years it takes to double or half our investment value. At 4.5%, it takes 16 years (72 divide by 4.5) to double our money. At 8%, it only takes 9 years (72 divide by 8) to double our money.
So, lower service charge is very important. But the most important thing is the fund manager's skill. There is no point to go for low service charge if the fund rank below average.
Fund ranking
Magazines (e.g. Smart Investors, The Edge), newspapers (e.g. Nan Yang Siang Pau), websites (MorningStar, Fundsupermart) do publish funds performance according to Lipper / MorningStar category. Read and compare carefully. I prefer funds that belongs to the top 25% with consistency.
Example:- If a category has 100 funds, focus on the top 25 funds with consistent return. That means to say, the fund does not stay top this year but go to bottom in the next.
eUnitTrust Promotion
eUnitTrust actively giving 0% sales charge promotion. Funds on promotion varies from time to time depends on fund houses participation. I would say most of the fund houses are generous to participate. I have more than 200 funds to choose from. The latest on promotion can be viewed here.
Or if you are in JB or if you are lazy to surf internet, do contact me and I can explain how I use eUnitTrust for my own investment including the tips and tricks. If you are interested to open account, I can do the referral. (Hmmm, I need to find out any gift for Client-Get-Client or not.)
I have been using Phillip's eUnitTrust portal to invest in unit trust. I like it because of I can do everything online and the service charge is as low as 0%~2% only. I must admit I am pampered.
Low service charge
As a financial planner, I also encourage my clients who are internet and investment savvy to invest through eUnitTrust. The first thing they can save is on the service charge. As investor, we all realized investment return can be lowered due to upfront service charge. The lower the service charge, the higher the return.
Example:- Let's say ABC funds' one year performance is 10%. If service charge is 5.5%, an investor's net return will be 4.5% only whereas if service charge is 2%, that investor's net return will revise up to 8%. That's a lot of different.
Rule of 72 tells us how many years it takes to double or half our investment value. At 4.5%, it takes 16 years (72 divide by 4.5) to double our money. At 8%, it only takes 9 years (72 divide by 8) to double our money.
So, lower service charge is very important. But the most important thing is the fund manager's skill. There is no point to go for low service charge if the fund rank below average.
Fund ranking
Magazines (e.g. Smart Investors, The Edge), newspapers (e.g. Nan Yang Siang Pau), websites (MorningStar, Fundsupermart) do publish funds performance according to Lipper / MorningStar category. Read and compare carefully. I prefer funds that belongs to the top 25% with consistency.
Example:- If a category has 100 funds, focus on the top 25 funds with consistent return. That means to say, the fund does not stay top this year but go to bottom in the next.
eUnitTrust Promotion
eUnitTrust actively giving 0% sales charge promotion. Funds on promotion varies from time to time depends on fund houses participation. I would say most of the fund houses are generous to participate. I have more than 200 funds to choose from. The latest on promotion can be viewed here.
Or if you are in JB or if you are lazy to surf internet, do contact me and I can explain how I use eUnitTrust for my own investment including the tips and tricks. If you are interested to open account, I can do the referral. (Hmmm, I need to find out any gift for Client-Get-Client or not.)
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