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
Lawyer Salary ( 1 2 3... Last Page)
15,663 Replies, 5,382,894 Views
DBS Graduate Associate Program ( 1 2 3... Last Page)
2,148 Replies, 639,856 Views
GovTech ( 1 2 3... Last Page)
1,756 Replies, 489,786 Views
For those with 2-5 YOE, what is... ( 1 2 3... Last Page)
489 Replies, 95,260 Views
Suitable job recommendations
3 Replies, 200 Views
Mid career switch - social worker
4 Replies, 2,147 Views
Cybersecurity/Info security career ( 1 2 3... Last Page)
354 Replies, 66,351 Views
Civil Service Performance Bonus ( 1 2 3... Last Page)
2,837 Replies, 2,237,847 Views
Htx ( 1 2 3... Last Page)
62 Replies, 8,654 Views
Cpf senior manager ( 1 2)
10 Replies, 2,891 Views
Changi Airport Group ( 1 2 3... Last Page)
446 Replies, 420,945 Views
Singtel Management Associate... ( 1 2 3... Last Page)
532 Replies, 192,988 Views
DSTA (under Mindef) ( 1 2 3... Last Page)
1,089 Replies, 800,605 Views
NUS (National University of... ( 1 2 3... Last Page)
163 Replies, 137,075 Views
Q: Big4 - Yearly salary increment ( 1 2 3... Last Page)
5,302 Replies, 1,701,044 Views
CSA (Cyber Security Agency) ( 1 2 3... Last Page)
393 Replies, 134,383 Views
Work culture in IHiS ( 1 2 3... Last Page)
216 Replies, 166,186 Views
High Finance Thread ( 1 2 3... Last Page)
489 Replies, 147,009 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
4,216 Replies, 1,982,971 Views
Compare civil service salary ( 1 2 3... Last Page)
13,382 Replies, 7,905,523 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
4,509 Replies, 2,770,819 Views
OCBC Graduate Talent Programme... ( 1 2 3... Last Page)
956 Replies, 319,268 Views
Career as Teacher ( 1 2 3... Last Page)
4,359 Replies, 2,823,917 Views
infosys, cognizant ( 1 2 3... Last Page)
36 Replies, 3,405 Views
Anyone jobless for a long time... ( 1 2 3... Last Page)
3,200 Replies, 1,382,448 Views
NCS (SingTel subsidiary) ( 1 2 3... Last Page)
640 Replies, 503,077 Views
ST Electronics ( 1 2 3... Last Page)
2,487 Replies, 696,133 Views
Standard Chartered International... ( 1 2 3... Last Page)
127 Replies, 86,290 Views
DBS tech seed programme ( 1 2 3... Last Page)
1,293 Replies, 361,847 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 02:10 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2