The Truth in Unit Trust Fund

I think unit trust is safer way to invest in stock, but it's not the best way to gain profit from investment. Imagine the annual management fee 2%. How much it cost you for 10 years?


First Year 2% -> if your fund performance with annualized return 10%, end up, you pay almost 20% of your total return to your fund manager. 80% profit belong to you.
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10th years? What happen?



Calculation:
First year : 2%^10 = 21% (after 10 years)
Second Year : 2% ^9 = 19% (after 9 years)
Third Year 2%^8 = 17% ( after 8 years)

After 10th Year, What's the NUMBER?



This is huge amount, but go into fund manager's pocket. That's how the fund management fee work out.

If you don't have time to manage your fund, it would be better for you to invest in unit trust. Less time consuming, but please find some good fund managers.


Recommendation :-
1) OSK-UOB asset management s/b : VERY GOOD! GOOD ASSET ALLOCATION
2) PBMUTUAL asset management s/b: GOOD in term of payment, easy to access to the fund.