Recap of Part 1
In Part 1 of this article, we analyzed how Award Winning Funds in 2017 under the "Malaysia Equity" categories are performing as of today as well as compare the funds against the rivals in the category.
We concluded in Part 1 that investing into Award Winning Funds under the Malaysia Equity category is not the best strategy for investor to utilize when it comes to selecting fund to invest into.
Check out the full post for Part 1 HERE
Part 2 Analysis
For part 2, we analyze how Award Winning Funds in 2017 under the "Mixed Assets" categories perform. Using the similar approach, we will try to answer the following:
We will derive the following outcomes in order to answer the 1st Question:
Derived outcomes of 2017 Lipper Award winning funds under the group of "Mixed Assets" for 3 Years and 5 Years
Clearly from the table above, 71.4% of 2017 Lipper Award winning funds have performed poorly over the past five years (5 out of 7 funds under the "Mixed Assets" categories). Note: Poor performance in this analysis is defined as less than 5% in annualised returns.
2. Are those award winning funds in 2017 remain as leader (the best) as of today?
The analyis for Question 2 comes as no surprise with rival/competitor funds under similar categories of the 2017 Lipper Award winning funds performing multiple times better.
We also observed that annualised returns of rival/competitor funds for all categories exceed the 5% benchmark. In other words, investing into rival/competitor funds have better risk vs reward outcome.
Similar to the outcomes in Part 1, investing into award winning funds under "Mixed Assets" category also produced similar fate as award winning funds under "Malaysia Equity" category. We can safely conclude that performance of majority of award winning funds tend to degrade after garnering alcolades (approximately 70% and above).
As an added bonus, we have another hypothesis which we intend to validate and published under Part 3, so stay tune and Follow our Facebook for updates!
Cheers and Happy Investing
Created by Shane My | Dec 06, 2020