Posted by chowkw > 2014-09-14 22:27 | Report Abuse

I attended a few talks by local fund managers. I see most of them have their own way to look for undervalue stocks. So they are not taking our money for nothing as many would think. To me 7-8 % annual return with unit trust is not bad. Yes warren buffet may make 20% return from stock market every year, but how many retailer has his skill?

Posted by sosfinance > 2014-09-15 08:50 | Report Abuse

dear chowkw xxxxx Bond Fund (commenced 1997 or 17 years) provided about 5.5%. For equity, due to the risk involved, long term return should be around 10% p.a. The reason UT get a lot lower than that is mainly the fee, 5.5%,.1.5%, 0.5%, 0.2%, 0.03%, (service fee, management fee, trustee fee, broking fee, custodian fee, some have performance fee, and a few hidden fee. Let us not compared with Warren Buffett, what is expected from Equity return for Long Run taking into account the risk?