Pakdi.net

I’m interested to show you how to make a comparison between your aggressive unit trust fund versus Kuala Lumpur Composite Index (KLCI) after Tauke Saham said something about it in chatbox of En. Aku’s blog. This is another way to measure your fund performance.

Please disregard this comparison if you only buy an index fund, bond fund, moderate-risk fund, or low risk fund and syariah fund.

This comparison is only valid for a fund which is intended to outperform KLCI, mostly known as an aggresive fund. I don’t know exactly which fund. Call your unit trust consultant please. You’ve paid their commission, haven’t you?

KLCI at the end of year of 2005: 899.79 points
KCLI at the end of year of 2006: 1096.24 points

So KLCI had 21.8% return in 2006.

Now, call you unit trust consultant and if your fund only gave you nett return for 2006 performance below than 21.8%, your fund was actually underperformed the KLCI.

And if your nett return of your fund was more than 21.8%, than the fund was outperformed the KLCI for 2006.

If you buy an index fund, your fund was performing good if the nett return for 2006 was between 20-22%.

This is only for a year only. Not 3 years nor 5 years.

All right, if you ask for 3 years:

KLCI at the end of 2003: 793.94
KLCI at the end of 2006: 1096.24

So KLCI had 38% of return. And your fund nett performance for 3 years must surpassed this figure.

For 5 years:

KLCI as at the end of 2001: 696.09
KLCI as the end of 2006: 1096.24

Well, KLCI had 57.5% of return. And again your fund nett performance for 5 years must surpassed this figure.

Allright, now I hear, how about my Syariah fund? Outperform the Syariah Index or not? Hey, call your unit trust consultant and he or she should have all the data for you. They are all driving BMW and even Jaguar to do this job for you dude.

You pay me nothing right?

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