Monday, August 2, 2010

Funds I like: AmDynamic Bond and Kenanga Growth Fund

For those who are interested in unit trusts investing, there are some attractive funds to look at based on their performances, resiliency and expense ratios. For Malaysia equity and bond funds, Kenanga Growth and AmDynamic are good picks. For balanced funds, OSK-UOB Kidsave Trust and OSK-UOB Growth and Income Focus Trust are the more attractive ones.

Kenanga Growth: Winner of Edge-Lipper Award for Malaysia Equity category for cumulative 1-year, 3-year and 5-year performance. 5-year annualized return was 14.3% p.a (KLCI: 8.1%) while 3-year annualized return was 6.6% p.a. (KLCI: -1.0%) as at end June 2010. YTD performance of the fund was 16.1% vs KLCI's 5.6%. It's suitable for investors who aim for long-term capital growth. Click here for more info.

AmDynamic Bond: The bond fund manager of AmInvest is reputed to be the best in Malaysia. The fund is mainly invested into high-yield, lower credit rating corporate bonds which explains its superior performance as compared to other bond funds. Despite its higher returns accompanied by higher risks, the bond fund manager seemed to be able to manage the risks well with volatility close to the benchmark over the past 3 years. 5-year and 3-year annualized returns were 9.9% and 7.8% respectively. Cumulative 5-year performance was 60.5%. Investors who are more risk averse and aim for both capital growth and regular income as well will find this fund attractive. Click here for more info.

PS: I always believe that fund sales charges should be as low as possible while charges should be applied based on the performance of funds. Thus, for now, Fundsupermart seems to offer very low entry fees for funds. Currently, Fundsupermart is having a promotion on Kenanga Growth Fund and AmDynamic Bond with sales charges of only 1.0% and 0.0% respectively (Where to get this kind of deal?!!)

Disclaimer: The above article does not represent an investment advisory service as no subscription or management fees are charged. The contents of the article are provided as general information only and should not be taken as investment advice or as a recommendation to buy or sell any security or financial instrument. Any investment decisions carried out based on information, analysis, or commentary provided above is solely your responsibility. You should consult your investment adviser before making any investment decisions.

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