Singapore’s Best Mutual Funds And Unit Trusts To Consider In 2019 And 2020

The investment sector has undergone a lot of changes within the first half of 2019, and among those changes include the slowed global economy. This has mainly been the impact of political-economic factors such as the Brexit concerns and the China-U.S trade war.

The political-economic issues have been shaking up the investment markets across the globe, and traders have been forced to re-evaluate their investments. The results of those issues have thus been felt far and wide. For example, Singapore is one of the fastest-growing economies in the world. However, the Ministry of Trade and Industry (MTI) revealed through the Economic Survey of Singapore for Q3 2018 that it expects lower growth figures for 2019 due to the increased economic risks.

The highly volatile global trade situation resulted in lower external demand, thus affecting the consumption of Singapore produce. Investors, therefore, have to restructure their investments so that they can take advantage of the areas that are still delivering high yields. Below are some of the mutual funds that investors should consider jumping on.

 

UOB United E-Commerce Fund

This is a Singapore-based unit trust fund that provides a chance for investors to leverage growth opportunities by investing in local and foreign stocks. The investment fund has an affinity for e-commerce stocks, thus its name. The minimum investment requirement is $1,000, and UOB United E-commerce Fund has already built up a good track record for its consistency and reliability.

 

Fidelity Global Technology Fund

This is one of the highest-ranked investment funds, and it mainly invests in technology firms. It has been in the market for quite many years but managed to deliver strong returns during that time. It has a positive average return of 8.04%. Investors need a minimum of $500 to invest in Fidelity Global. The fund, however, warns investors about the fund associated risks through which investors can lose their money.

Its high risk might discourage some investors, but then again, Fidelity Global has demonstrated the ability to deliver strong returns.

 

UnitedAsia Pacific Real Estate Income fund

It is one of Singapore’s highest-yielding unit trust funds as far as returns are concerned. Just like its name suggests, UnitedAsia Pacific focuses on the property market, and this particular focus generated consistent returns over the last 12 months.

UnitedAsia Pacific’s consistent;y strong growth is evident in its historical performance. The fund delivered 0.3% returns in Q1 last year, 0.5% returns in Q2 and 1.2% in Q3. Investors expect the trend of delivering strong performance to continue in 2019 courtesy of the careful investment decisions of its executives. Investors might, therefore, be in for a treat as far as the 2019 performance is concerned. It might thus be one of the best mutual funds that Singapore investors can invest in this year.

 

Prulink Singapore ASEAN Managed Fund

Thanks to its aggressive investment approach, Prulink Singapore ASEAN has so far earned itself recognition as one of Singapore’s best mutual funds. This mutual fund focuses on the bonds market, and it charges around 1.25% annually. However, this is a low rate compared to the rates charged by its rivals.

Prulink Singapore not only maintains consistent returns, but it also offers great performance coupled with low risk. The fund’s annualized volatility in 2018 was 7.06% while its returns came in at 4.9%. This means that it had high prospects, making it an attractive investment vehicle for Singapore investors.

 

Janus Henderson Global Technology fund

This is a unit trust that is focused on providing long term value to investors by investing in carefully selected stocks of technology firms. The Janus Henderson unit trust takes advantage of trends in the global market by diversifying its investments in a wide range of assets. The unit trust has its doors opened to investors for as little as $100.

The Janus Henderson unit trust is one of the best investment options for newbie investors considering its low minimum investment requirement. It also charges very low trustee fees at 0.05%, and the same applies for management fees at 1.33%. This unit trust has also been demonstrating consistent returns.

 

Aberdeen Singapore Equity fund

This mutual fund received praises in the past due to its positive performance. Morningstar awarded it a 4-star rating. It was also described as one of the best performing unit trusts in the last decade by Thomson Reuters Lipper. It delivered a 9.3% annualized return rate over the past 20 years of operations.

One of the major reasons behind the success of this unit trust is that it provides opportunities for investors to access the best blue-chip stocks in Singapore. Some of the companies in its portfolio include SingTel, OCBD, and DBS. Aberdeen Singapore offers decent returns at low-risk thanks to the carefully selected portfolio of listed companies it invests in.

 

Schroder Asian Growth Mutual Fund

This mutual fund does not have a specific sector target, and this means that it has a diverse investment portfolio. Also worth noting is that its investment portfolio spans across most of the countries in Asia. Also, it does not invest in Japan. 2019 is proving to be one of the best years for Schroder Asian as far as growth and returns are concerned.

This mutual fund has investments in major technology firms in Asia, including Alibaba, Tencent, Taiwan Semiconductor, and Samsung. It also invests heavily in financial companies, especially those listed in China. Its Chinese investments take up 36.2% of Schroder Asian’s entire portfolio.

 

Fullerton Lux Asian Equities

This mutual fund delivered 14.53% in returns last year and was considered one of the best unit funds in Singapore. However, it is also considered as one of the riskiest mutual funds, which means that it is not ideal for risk-averse investors.

Fullerton Lux has invested just 8.8% of its portfolio in Singapore while the rest is outside the country. It has invested heavily in some of the biggest Asia-pacific companies, making it a good investment option for those that want to expand their investments outside Singapore. It also has holdings in major firms such as Samsung and Taiwan Semiconductor.

(By Neha Gupta)

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