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Normandy Advisory Services Sdn. Bhd (Licensed Investment Advisor)
15th Floor Menara Multi-Purpose, No 8 Jalan Munshi Abdullah, 50100 Kuala Lumpur
Tel : 03 - 469 5560 Fax : 03 - 294 5561

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Fund managers have had to work hard over the past years to boost the performance of their investment portfolios amid the growing competition in the investment industry.

Aside from achieving good performance on their portfolios, fund managers are constantly looking for new ways to boost income. Players in the unit trust industry are constantly launching more innovative products in order to capture a bigger share of the market.

We have witnessed that the performance of some local unit trusts have been volatile for the past several years under different market conditions. Some fund managers blamed the poor performance on the volatility of the market trends. But the more obvious reason could be the fund manager's ineffectiveness in stock selection in different market conditions.

There are other funds which have been performing well despite the ups and downs of the market trend. There were funds which outperformed the KLCI over a longer period. But there were other funds which have even managed to fall below the fixed deposit rates amid positive stockmarket environment. To support this view, in 1996 there were funds that underperformed the KLCI severely and even managed to fill below the average fixed deposit rates.

There are more than 70 funds to choose from in the local unit trust industry. Investors should be wise in selecting what is best for them. Instead of relying on fund managers and their fees, probably you should learn some basic skills to enable you to start managing your personal investment portfolio.

Start your own portfolio management. Execute simple financial planning. Effective stock selection is key to enhanced investment performance and thus, you will have to pay extra attention on this area. Buy some shares, let's say, 5 companies. Be a long-term oriented investor that is built in a strong foundation with holdings in 5 solid blue chip companies and probably add additional stocks for effective diversification.