@timtalksmoneysg: Here's why I don't buy unit trusts. 👇 Most unit trusts charge a total expense ratio (TER) of 1.5% to 2% PER YEAR. That also comes with an upfront sales charge of around 1% to 3%. While these numbers can sound small, compounded over 10-20 years, the drag on your returns is absolutely huge. If your fund gives you an average gross return of 6%, then you're actually getting a 4% p.a. return (net of fees). Over 30 years, that 2% difference on a $100k investment is staggering. And active managers rarely add any value. A lot of studies, including the annual SPIVA report, find that the vast majority (90%+ in some cases) underperform their respective benchmark indexes over 10 to 20 years (after fees). Most active managers simply aren't Warren Buffett. And they are charging you an expensive premium for average, or below par, returns. Give me a follow here or subscribe to my YouTube @timtalksmoney for more real investing and money insights. #singapore #fypsg #sgfinance #etfs #personalfinancetips

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Saturday 01 August 2026 08:00:16 GMT