Book of Wise Investors

This post will talk about a passively managed fund that is introduced in Singapore two days ago, on 4 August 2009. According to various sources and opinions, Singapore is a small rich city state with more than US$100 billions in reserves, with stable social-political-economical environment for decades.

According to local mainstream media in Singapore, there are three funds options. The POSB’s MyHome Fund buys into DBS Singapore STI ETF and ABF Singapore Bond Index Fund.

Let us look at what the DBS Singapore STI ETF and ABF Singapore Bond Index Fund consisted of, based on what the newspaper…

Most of average people like us participate in stock markets through mutual funds rather direct stock ownerships. Although in general, no one has to be afraid of losing every single cent in his or her mutual funds investments, there are still some issues to bear in mind when investing in mutual funds.

1. Historical returns does not equal to future returns

The issue with marketing materials that one see from every mutual company is that almost every chart that they produced show higher than market returns and your problem become not of choosing which got the highest returns but of…