Sack your fund manager - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > Investments and Net Worth

Investments and Net Worth Talk all about money making exploits, shares, property and building net worth




Sack your fund manager

Reply
 
Thread Tools
  #1 (permalink)  
Old 30-05-2007, 01:47 PM
Salary.sg
Guest
 
Posts: n/a
Default Sack your fund manager

While we're still talking about investing in funds, the Business Times published a very interesting article by Larry Haverkamp, who is perhaps better known as Dr Money of the New Paper.

Larry did a study on some 325 funds in the CPF Investment Scheme (CPFIS).

He found that, not surprisingly, fund returns are random from year to year. And regardless of how "smart" fund managers are, they can't even generate above-average returns consistently.

Er, you ask, so why are fund managers still doing well? Simple. It's all thanks to slick marketing.

Funds distributors will always advertise only their top performing funds with lots of publicity. They don't tell you about the underperforming ones, which unfortunately form the majority in their basket of funds. Come next year, when the previously hot-selling funds become losers, the distributors will pick other winners to market and sell.

Larry's conclusion is that past performance doesn't matter. It's costs that matters, which is why he also recommends buying index funds and exchange traded funds (EFTs).

Here's perhaps the most important extract from the BT article:
Quote:
"... it helps to diversify. Then, hold for the long run. What about stock picking and market timing? Forget it. They contribute practically nothing to returns. Why? Because studies show that it can't be done. Not even by super-smart fund managers."
http://www.salary.sg/2007/sack-your-fund-manager/

Reply With Quote
  #2 (permalink)  
Old 30-05-2007, 02:25 PM
Henry Leong---
Guest
 
Posts: n/a
Default 129

Usually they invest in blue chips. Less likely to take risks.

Reply With Quote
Reply

Bookmarks

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


» 30 Recent Threads
Q: Big4 - Yearly salary increment ( 1 2 3... Last Page)
17,026 Replies, 5,279,305 Views
Lawyer Salary ( 1 2 3... Last Page)
21,270 Replies, 10,640,543 Views
How is life as a doctor in... ( 1 2 3... Last Page)
7,477 Replies, 3,544,341 Views
Ex-MOE Teachers ( 1 2 3... Last Page)
429 Replies, 515,385 Views
HTX (Home Team Science and... ( 1 2 3... Last Page)
891 Replies, 422,381 Views
Compare civil service salary ( 1 2 3... Last Page)
16,477 Replies, 12,751,433 Views
Roles in accenture singapore ( 1 2 3... Last Page)
7,829 Replies, 2,470,522 Views
DBS tech seed programme ( 1 2 3... Last Page)
3,862 Replies, 1,548,054 Views
Factual Local Bank Salaries - DBS... ( 1 2 3... Last Page)
1,885 Replies, 1,497,153 Views
GovTech ( 1 2 3... Last Page)
6,489 Replies, 2,480,127 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
5,983 Replies, 4,813,430 Views
IMDA (under MCI) ( 1 2 3... Last Page)
1,314 Replies, 670,218 Views
MAS for Mid Career Professionals ( 1 2 3... Last Page)
2,179 Replies, 1,125,008 Views
Changi Airport Group ( 1 2 3... Last Page)
473 Replies, 641,062 Views
DSTA (under Mindef) ( 1 2 3... Last Page)
1,600 Replies, 1,437,975 Views
CAD (Commercial Affairs Department) ( 1 2 3... Last Page)
231 Replies, 261,949 Views
Career as Teacher ( 1 2 3... Last Page)
11,419 Replies, 6,996,488 Views
NCS (SingTel subsidiary) ( 1 2 3... Last Page)
1,372 Replies, 1,193,687 Views
Hospital (Private or Public)... ( 1 2 3... Last Page)
773 Replies, 450,653 Views
CIMB Apprentice 2024
4 Replies, 196 Views
Civil Servant Bonus Mid-2023 ( 1 2 3... Last Page)
162 Replies, 163,600 Views
Enterprise Singapore hiriing... ( 1 2 3... Last Page)
183 Replies, 235,659 Views
LTA (Land Transport Authority) ( 1 2 3... Last Page)
834 Replies, 442,732 Views
Civil Service Current Estimated... ( 1 2 3... Last Page)
189 Replies, 322,933 Views
CSA (Cyber Security Agency) ( 1 2 3... Last Page)
939 Replies, 547,491 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
6,230 Replies, 3,887,732 Views
Dillema: University of Melbourne... ( 1 2 3... Last Page)
65 Replies, 67,290 Views
ST Electronics ( 1 2 3... Last Page)
3,866 Replies, 1,618,866 Views
Work in SMU ( 1 2 3)
23 Replies, 7,054 Views
Anyone from Ministry of Social and... ( 1 2)
15 Replies, 19,072 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 03:05 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2