Knowing how many funds are enough:
According to MorningStar study, Owning just one fund can be a risky bet. After 4 funds, the effect of adding another fund diminishes. Adding a fourth fund helps reduce the overall portfolio’s volatility, but not dramatically so. After 7 funds, things have mostly leveled out.
Once you own between 7 to [...]
Posts Tagged as ‘unit trust’
December 7, 2008
Some tips on Unit Trust Investment
August 10, 2008
Morningstar guide to Mutual Fund Investment
Always ask yourself five question before you proceed to buy a unit trust:
What does the fund own?
How has the fund performed?
How risky has the fund been?
Who runs the fund?
What does the fund cost?
To evaluate “what does the fund own”, you can employ morningstar investment style box, explained below:
Morningstar investment box for stocks (equity)
Level of [...]
