Why Fund Company Keep On Introducing New Funds ?
I just bought PCSF (Public China Select Fund) priced 0.21, which is launched middle of 2007. From the historical analysis, I found that it performs quite well and growth potentially to 0.29. So, It has quite a track record previously. Now, it’s a right time for me to invest since now is the market downtime.
Overall, PCSF is the best performing fund at the moment, and more upside as Olympics is near.
Why fund company keep on introducing new funds?
New funds are introduced to keep investors interested. With the ever growing opportunities, fund managers have to get in the new funds to suit for the situation. It’s also a way to keep the funds recycled, while keeping costs low to target on new investors. While new funds are released, the charges are discounted during the promotion period.
In addition, when the fund managers see their existing funds are doing great, they’ll launch a fund that mimics it. Mostly the new fund with new strategies will be launched. Just like people saw fuel price hike then Unit Trust company will come out some sort of fund that invest in oil.
Difference Between Old Fund Vs New Fund
Some people like to invest old fund since they can see the track record. For me, I will look at new funds because most of the new funds are investing in the most recent hot portfolio while old funds can’t really change their scope anymore.
Some people feel that the old fund couldn’t rise up fast since it is nearly hit highest peak. For me, old fund doesn’t mean it won’t go up, performance wise all depend on their portfolio aka stocks they are holding.
New funds or Old funds actually are the same. Just new funds NAV is lower.
February 10th, 2008 at 2:44 pm
They introduce new funds because to attract more and more investors and the reasons why they’re so many new investors is because the past 2 years, most of the funds are really performing. A lot of agents use this reason to promote the funds and usually this past history data can attract those investors.
Whether new or old fund, I would also go for the new funds. Something like an IPO, it usually goes up. New funds also cover some of the investment sectors that have not been covered by old funds (e.g. China, Vietnam, Property and etc.). However, I will still continue investing in old funds that I have invested.
February 14th, 2008 at 10:28 am
public bank is the highest and the most fund launched last year
February 16th, 2008 at 3:11 pm
should do something in new year to fight wif ur age
February 17th, 2008 at 1:53 am
oh now i realise that why fund company like public mutual always come out new fund already..that nice info!
February 17th, 2008 at 10:00 am
I have just bought one PB fund last year, am considering the PB China fund for the same reason as you, Olympic Games!
February 18th, 2008 at 1:23 am
i thnk with the age of 24-40 then it’s a good opportunity for us do investment since we can compete more …
March 19th, 2008 at 8:44 pm
David, mayb you can look into Manulife’s funds as well, they are doing extremely well too.