My Home Growth Fund - Nikko AM review

[Update year 2020: This fund has been closed by Nikko AM and is no longer available for subscription.]

This is the very first fund I bought just to dip my toes into funds about 3 years ago. No RSP is subscribed. I shall do a quick review on how it's doing.

When started: Year 2012
Price: $1.05 per unit

Received dividend payout ONLY twice (3c per unit) from purchase to date. Thereafter, I was told by Nikko AM that the dividend is being reinvested into the fund after I feedback to POSB on the lack of dividend payout when the fund annual report says there's dividend (why does it seem like coins dropping into an endless depth with no echo at all...).

Current price: $1.13 per unit (highest $1.31)
Annualized return: 0.2% (huh?)

Those bluechips that make up the fund are all dividend yielding, but the fund unit price growth is far from the yields. What does this mean?

As we all know bond prices fluctuates very little and the stability comes in getting the yield. There's a component of ABF Singapore Bond Index Fund. Assuming the yield gets reinvested then shouldn't the number of unit holdings increase with years? Maybe the fund manager's units but certainly not MY units (which remained the same throughout).


Even though it's components are not all from STI, but it mirrors. Diew....


Needless to say, no more Nikko funds for me.


More information about Home Growth fund here:
https://secure.fundsupermart.com/main/fundinfo/viewFund.svdo?sedolnumber=DBS010
https://www.dollardex.com/sg/index.cfm?current=investUT/fundOverview&p=%24%22%403%2F0%20%20%20%0A


Comments

  1. Beware of the initial sales charge of 3%. In other words, you already lost 3% to sales charges before having any capital gains. And to gain back that loss would require more than 3% appreciation. For eg, share price drop 50% from $1 to $0.50. To recover back to $1 requires a 100% increase.

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