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Friday, October 8, 2010

Unit Trusts Shenton Asia Pacific, Global Opportunities, Eight Portfolio ALL SOLD

There have been times we were approach in the banks, in magazines, TV ads about buying Unit Trusts and Dollar Cost Average. And the other acronym RSP. Regular Savings Plan meaning putting aside monthly a fixed amount say $100 into the Unit Trusts. This is the methodology of unit trust investment. Some professional will manage a basket of stock portfolio(s) on your behalf for a fee.

Today, I finally sold my remaining holdings in Shenton Asia Pacific Trust, Shenton Global Opportunities Fund and Ei8ht Portfolio by DBS Asset Management. Previously I had sold all units of my Citibank UOB United Telecom Trust.

The conventional question would be why you divested all your unit trust funds? Is it against basic diversification principles? Yes perhaps it does. Diversification is a form of average risk(s) into different sectors, segment, and types of investments. Cash, stocks, bonds, unit trusts, property. And within each segment a few other diversification e.g. Singapore Stocks, Malaysian Stocks. Residential property, commercial lot. So on and so forth.

Going back, let us think about the significance of having an investment in unit trusts. The goal is there are some professionals helping to manage and diversify your portfolio. You sum of $10 000, will be diversify to include Singtel (telco), Ezra (shipping), SIA (transport) and a dozen other stocks. Which you are unable to perform with just $10 000 by yourself. Perhaps you could buy 3 lots of Singtel shares.

Now, we are supposed to be self discipline investors. Seeking out to look for risks that will give a delightful return. Some of you had attended seminars. Many bought books, or read up from the internet. Blogs, magazines, Forbes Magazine, Bloomberg. We look at reports. Brokerage house recommendations. The Edge Magazines. We try to be more knowledgeable about Technical Analysis. Fundamental Analysis. Price Earning Ratio. We can think of dividend yields and compare that with Fixed Deposit Dividends. And we feel wiser when we can set aside that $10 000 into say Suntec REIT, and get a 7% return, rather than letting it stay in Fixed Deposits. We feel an accomplishment. We studied!

Therefore, the question is then isn't it obvious we are actually taking back that people power into our own hands. We are managing, diversifying, investing from our own analysis and own effort? We have a fuller control and we feel satisfied. That is how I feel. Ever felt very upset when the Unit Trust we bought did not perform?

Finally, I am saying all my good-byes to unit trusts. Perhaps a milestone of graduating from seeking experts to manage the investment options (and paying them a fee), now I am doing it from my own effort, my own knowledge and experience. The monetary rewards are more fulfilling simply because I did it my way. Comments, suggestions, welcome.

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