Buy OCBC's Recommended Unit Trust to Return Better Interest Rates????

Do you believe?

Some 11 years ago, under intense sale talk I was swayed into buying a unit trust valued at $80,000 minus commission of 5%.

The unit trust is now worth under $34,000 and I was phoned recently & asked if I want to consider switching to another unit trust! Was it out of concern or the greed to earn more fat commission?

Buying such financial products is akin to "head, I lose; tail they win...".


>51% loss over 11 years of long term horizon is simply unbelievable and ridiculous!

Do you still want to buy bank's recommended products? Lehmen's Mini Bond is a famous case but this one plus many others are also under the carpet.

So Caveat Emptor rules supreme - ie should banks be trusted?

becareful, unit trust can lose principle value.

dun just listen to the mei mei at the desk, u have to do your own homework when it comes to investment. i bet the mei mei there know nuts about it

mei-mei @ ze desk oni interested how much commission she gonna earn from u ... later if ur investment moni all gone is not her concern ...

Hans168 said:

KIV for the moment...

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Sounds interesting.

Which UT(s) would that be?

eg. http://www.ocbc.com/personal-banking/investment/Inv_Unt_FundHouses_Aberdeen.shtm

Hans168 said:

KIV for the moment...

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Please dont buy any trust for now. Wait for market down. Now is on high side will not go up much more.

I'd avoid investing in any unit trusts. I've invested in many of them & the returns are pathetic.

Don't forget that unit trusts charge management fees. You are better off opening a trading account with a discount broker like Etrade & buying US equities because they do not holding fees, gst, etc which Spore brokerages do.

Hans168 said:

...Buying such financial products is akin to "head, I lose; tail they win..."
:
:
So Caveat Emptor rules supreme - ie should banks be trusted?

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Precisely. It is a known fact that markets go up and down.

However, for Unit Trusts offered by the banks, their revenue from promoting these UT is only 1 way up! More when the market is on the rise, less (but not -ve) when the market is down. In other words, for the banks it's "Head they win, Tail they will", but for UT investor, "Head you win (less fees to bank), Tail you lose (and you still need to pay the bank!)".

ETF is a much much better alternative to UT / Mutual funds.

Read more about ETF vs UT: http://www.moneytalk.sg/2008/12/sti-etf-vs-unit-trust.html

but i must say this too, IN GENERAL.

Unit trust with high profiles of equality in shares in general, history has shown it will do well over a long term of 5 years, regardless of market up turn or down. Talking about average unit trust performance. but if your fund managed by fucktard too bad, or the profile belong to high risk one...that one different story...

Meaning you fuck care the market goes up or down, you buy in using fix amount of cash like deposit (say ~few hundred). When its up you buy less with same amt, when its down you get to have more. In general (say already u better do your homework who manage the fund) you do win for long term investment of 5 to 10 years. Its a good form of investment for lazy people who do not wish to spend too much time on it. Not for the pros of cos they avoid it.