Unit Link investment, Equity, Fixed income or Regular savings at the bank...

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  1. #1

    Join Date
    Aug 2009
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    Unit Link investment, Equity, Fixed income or Regular savings at the bank...

    During these economic hardships, I was wondering how people would prefer to invest their money in nowadays. Lets take a vote and reply on your preferences on products such as unit-link/mutual funds, stocks, bonds or savings deposits....


  2. #2

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    I haven't changed much since last time this question was asked, although I have a little less equity and a bit more Philippine business investment now.


  3. #3

    Join Date
    Aug 2009
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    PDLM,
    What type of Philippine business investment. Is it a type of fund that mainly focus on the Philippine sector? I do agree funds are more steady in growth and believe that it reacts better in risk exposure. Does anyone disagree?


  4. #4

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    No - my wife and I own a restaurant business in The Philippines.

    These days I am very anti managed funds of any type (market or sector focus, hedge, whatever) years of experience has shown me that very very few consistently achieve anything like what they set out to do. It is almost always better just to invest in a passive ETF or Tracker Fund.


  5. #5

    I'm with PDLM on investing in an ETF. Studies have shown that over time, most investors would do better with ETFs than professionally managed funds. Even if the fund manager is able to beat the market, the cost of buying, switching and fees usually negate the 'stellar' gains.


  6. #6

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    Aug 2009
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    PDLM,
    I have checked out ETF's before since it was so popular. Regarding fees after reviewing their prospectus. All the fees and charges are already included on the px of ETF. ETF and Funds both have their good and bad. Regarding performance you can make comparison on specific etf's or funds. they both are similar to mimicking the index. However, as for risk management. Funds are a bit safer in my opinion.


  7. #7

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    Eh? Funds almost always underperform the index even before you take out the substantial fees. A good ETF simply tracks the index precisely. How is the former better risk management than the latter?

    A really good ETF (such as the Tracker Fund here in HK) actually holds all the underlying stocks and pays through the dividends as well.