Top 8 Mutual Funds or Unit Trusts to Invest in Singapore 2019
The global economy today is not performing at its most optimal. Singapore’s growth numbers have largely missed estimates for much of the year.
In the Economic Survey of Singapore for the third quarter of 2018, the Ministry of Trade and Industry (MTI) cited weakening external demand and increasing economic risks on the global stage.
Nonetheless, MTI is confident that the economy will grow at between 3.0% and 3.5% on average for the whole year. The growth numbers for 2019 are likely to be lower due to the emerging threat of a trade war between the world’s two economic giants.
Despite all the negativity, the economy will continue to expand in the coming year. Therefore, Singaporeans should be ready to partake in the growth.
In these times, it is only prudent to look out for the best investment vehicles. They also should be able to withstand adverse economic conditions.
Mutual funds collect money from various investors and put it in diverse investment vehicles. Usually, a mutual fund will invest in stocks, bonds and the money markets. It will depend on the structure and business plan of the mutual fund on whether the investment is purely equity-focused, bond-focused or a mix of both.
The bottom line is that mutual funds offer safe investment options for risk-averse investors. In Singapore, these entities are gaining traction as many people opt to invest with them.
In 2018, there are mutual funds that performed well according to Fundsupermarket, a premier platform for mutual funds. Besides helping people invest in mutual funds, Fundsupermarket collects crucial data about the entities.
The information helps the platform to evaluate the performance of all mutual funds. For this year, most of the best performing funds invest in equities.
Interestingly, the equities market is likely to continue outperforming the bond market in the coming year. This is likely especially in the face of the ongoing trade war between China and the U.S.
As such, most of the funds that will pop up in the best list invest in diverse stocks in the equities sector. This article will dwell on funds that are best performing year-to-date. Here are the best eight.
Fidelity Global Health Care Class A
Ranking funds in Singapore is quite a task. This is because the sector groups them according to what portfolio they normally keep. For instance, you will have fixed income funds (funds that invest in bonds only) grouped together and ranked on how they beat the market.
On the other hand, equity funds will appear separately, as well as funds that mix their portfolios. Nevertheless, Fidelity Global ranks high in rankings done by all major platforms.
For the last one year, Fidelity Global overall performance is positive. The fund beats many rivals as it has a positive average return of 8.04% according to Fundsupermarket.
Further, Fidelity Global maintains a 1-year offer to bid return of 1.4%. On the other hand, the 1-year bid to bid return clocks 7.06%.
However, the fund has the highest rating of the risk. This implies that as much as the investor is likely to get high returns from the fund, there is a high likelihood of losing capital.
Aberdeen Singapore Equity Fund
This year was particularly not good for this fund. According to the latest monthly fund manager’s report, the fund is a victim of a global equity sell-off. As such, most of the equities in the fund’s portfolio ended in the red.
With exposure to DBS Group, OCBC and UOB, the investor is guaranteed a good return in the coming year. These and a few others in the funds top ten equity holdings are the best companies in Singapore. Therefore, if you wanted exposure to the best, Aberdeen is your destination for 2019.
Further, the Aberdeen Singapore equity fund enjoys a four-star rating from Morningstar, a premier rating platform for investment vehicles.
Eastspring Investments Unit Trusts – Singapore Select Bond Fund Class A
There are few long term investment options that guarantee good returns. With the bulk of investments in the government bonds, Eastspring is among the safest funds to put money in.
Particularly, the global equity market is in kind of a tailspin with the ongoing trade war between the two largest economies. As such, the demand for government bonds will hike.
The fund holds 22.4% of government bonds, 22.2% corporate bonds and the rest spread across REITs, Insurance and others.
Further, most of the investment is in the Singapore debt market. With 58% of country weight, the investor will get sufficient exposure to the growing trend of the economy.
United Asia Pacific Real Estate Income Dis SGD
Citywire ranks this fund as the best in terms of returns. The fund exclusively invests in the property sector. Interestingly, the funds have consistently performed above the sector average for the whole of this year so far.
The fund returned 0.3% in the first quarter of 2018. In Q2, the performance improved to 0.5% and later 1.2% in Q3. If this uptrend is to sustain for the rest of the year, this puts the fund in a great position to offer great returns in 2019.
Franklin Global Convertible Securities A (ACC) USD
Franklin global gives the investor the opportunity to accumulate capital in the bond market. The fund maintains a total annual charge of 1.25% which ranks very low compared to industry peers.
Morningstar gives the fund a five-star rating based on low-risk exposure and strong returns. For the last 1-year period, the fund returned 4.90%. Further, the fund reports 7.06% annualized volatility in Singapore dollars. As such, its estimated future returns are high.
Fullerton Lux Asian Equities A SGD ACC
Fundsupermarket ranks this fund as high risk. However, Fullerton is the overall best fund for the last one year. In this period, it returned 14.53%.
Investments in Singapore account for only 8.8% of the total country focus for this fund. Nonetheless, the fund maintains holdings in the largest companies in the Asia Pacific. As such, it is a very safe bet, especially with the impending tariffs in the coming year.
Interestingly, the fund’s portfolio cuts across the region, from Taiwan Semiconductor Manufacturing to Samsung Electronics in South Korea.
PruLink Singapore ASEAN Managed Fund
If you like an entity with an aggressive investment culture, PruLink is your fund. The fund is a leader in the 3-year Lipper rating for a consistent return.
Managed by Eastspring Investments (Singapore) Ltd, the fund boasts an average return of 3.3% since its inception in 2012.
It has holdings in DBS Group, United Overseas Bank, Overseas Chinese Banking Group, Singapore Telecommunications among others. The diverse nature of its holdings ensures low risk while keeping the returns substantial.
Schroder Asian Growth SGD
With no sectorial emphasis, this fund invests in the majority of Asian countries but with the exception of Japan. Although past performance is not a reliable indicator of future returns, Schroder has had one of its best runs this year.
Further, the fund boasts holdings in the region’s technology giants like Samsung, Taiwan Semiconductor, Tencent, Alibaba and other diverse equities.
However, the largest sector in focus is financials where its holdings amount to 23.6% of its portfolio. Also, the fund largely focuses on Chinese equities with the country taking up 36.2% of the total portfolio.