Saturday, January 23, 2010

Mutual Fund of the year 2010 ? By the numbers ...

In 2009, about 10 mutual funds thats worth looked into were selected out of 530 choices in Malaysia.

Today lets take a look at how they performed in the past 6 months. Below chart shows their respective return in percentage. From past 1 day, past 1 week, past 1 month etc.

The actual percentage return is NOT important here. We are comparing fund performances across different fund managers. What we are looking for is a graph that consistently stay above the others. That would give an indication of "consistently outperform the others".

The most apparent winner is OSK Equity Fund and the worst is Public Ittikal. However, this does not imply anyone of them is better than another. The market has been trending up generally. OSK is well verse in stock market and therefore able to catch most of the up trend. Public Ittikal on the other hand only deals with halal and safe instruments. You can be assured that both of these funds are very strong in their fundamentals.

However, one clear message from this chart is that we can take TA away from this list. As you may see, their chart patterns show as if they have no clue how the market will move and don't even have any good strategies in their fund management. They are supposed to be as good as OSK.

So if you think the market is continue to be bullish, exercise DCA on OSK-UOB Equity Trust. Else if you prefer safer haven, try AMB Ethical Trust and Public Saving.


jason said...

Past result does not indicate future performance.

I prefer finding one mutual fund with the lowest expenses.

Michael Tsen said...

good comment but this article isn't about future performance, that was your own interpretation :)

if you check previous article, this is about;

1. funds have been managed well
2. have performed BETTER than other funds

low expense ratio is already included as one of the factors in this short list.