Although the future for the financial markets may not be as clear today as it was earlier this year, the Malaysian Unit Trust Industry, as far as Investment Return is concerned has performed very well.
According to the Morningstar Fund table (previously the Standard & Poor table), as at 26 November 2007,
the total average yield for Malaysian unit trust equity funds was 53% for the past three years, and 103% for the past five years. That is an average return of 17.7% per annum for the past three years, and 20.6% per annum for the past five years.
This successful fund performance is testimony to the fact that the unit trust industry is run by investment professionals, who have taken the big picture in mind, and have set long-term policies to achieve long-term returns.
People who invest in unit trust with a short-term strategy in mind will sometimes make money and will sometimes lose money, because as we all know, markets go up and they go down. It has been proven, time and again, that unit trust investments will always generate returns that are far superior compared to that risk-free instruments like banking fixed deposit interest but only if you invest for the long-term.
To achieve these consistently superior returns, the unit trust industry employs the best trainedthe best educated brains to study the markets, and to manage the investments of its funds. When there are bull markets, these guy aim to out-perform the benchmark indexes and many do just that. But when the bear markets return, these guy will shift their investment strategies to conserve value and thus, beat the indexes once again.
