Wednesday, 13 September 2017

Performance of the Various Markets over a 10 year Period Plus Alternative Way of Investing

I was comparing the performance of different financial markets over a 10 year period. The chart below shows the performance of FTSE 100 (UK), Hang Seng (Hong Kong), S&P500 (US),  Thai SET, NIKKEI 225 (Japan), China and our beloved STI Index.

Can you guess which is the best and worst performing market? The best performing market may shock you!




 Screenshots from FSM

It's Thailand!

I took a look at some Unit Trusts that invest in Thailand and the performance are as shown below.


Our gains would be more than 100% if we had invested in Aberdeen Thailand or Fidelity Thailand A USD 10 years ago. This is not a recommendation to buy or sell Thailand funds as past performance may not reflect future performance. I did invest in Aberdeen Thailand before and I lost money as I bought and sold at wrong time.

Of course, it's possible to make much more money from stock market provided we are correct in our stock picks. However, I would not consider stock investing as truly passive income due to the research efforts required.

Robo Advisory

There is now a new way of investing and generating passive income through robo advisory. Robo advisory can create a diversified portfolio consisting of bonds and etfs based on our financial goals and risk appetite. Their commission rate is also lower compared to the traditional method of investing in Unit Trusts. 

There are 2 companies that offer such service: https://www.stashaway.sg and https://www.crossbridgeconnect.com/  They have local office in Singapore and are regulated by MAS. For those interested in such hands off investing approach can check out their websites. If you are invested in STI ETF and unsatisfied with the performance, can also check out these services. If you have used their services, please feel free to share your experience in the comments below. I have not used their service myself and can't provide any feedback. Happy Investing!


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