Wednesday, 27 May 2009

Stock Market versus Unit Trusts

I dump my money into unit trusts, specifically Public Mutual for two reasons.
1. As a forced saving
2. Malas to play in stock market

I do buy shares once in a while when Im free to analyse them. But more towards unit trusts. My relationship with unit trust kept dwindling though. While I understand unit trusts are not meant for instant or short term gain, I didnt expect it to make 40% of cash vanish. It was good initially. +30% in the first year, then the great decline came. Not that I am blaming anyone for the trusts' value to drop, but wtf with the big big drop.

The fund managers are definately idiots. Or they are just officeboy promoted to be fund managers, seeing the amount and types of fund coming out every month. Maybe thats why the mismanage of funds. I mean, they are making the same mistakes as I do. During the great decline, I made a few wrong choices, and they make the same wrong choices. So I lose 40% in both Stock Market and Unit Trust.
Now that the great decline has pass, I recouped 50% of the 40% lost in Stock Market, and those fund managers in Unit Trusts are not even catching up!!

If they cant match random uneducated share picking by a layman like me, what good can I make of them? Im thiking of disposing ALL of the Public Mutuals I have when they finally shred their paper losses. From the fund managers capabilities, they wont go high. Its ok if they dont go high, that is not my aim anyway. I just dont want them to make stupid mistakes again. Its ok for me to be my own fool. Letting a fool to manage your money just makes you an even bigger fool.

Im not sure if they can recoup the losses by the end of the year. They better be.

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