The unique diversified structure, diversifies risk, making the unit trusts (Mutual Funds) a low risk investment.

1) This diversified nature of Unit Trusts, inadvertently has created certain ‘loop-holes’ which makes it possible to -

a) Effectively select the best Unit Trusts/Mutual Funds (through track record .. no over-bought situation) and

b) Apply very reliable strategy and

c) Fundamental & technical analysis (no direct speculative influences … ‘purer market’) is much more reliable.

This METHODOLOGY is about using and taking advantage of these characteristics to transform Unit Trust Investment into arguably the best risk to reward investment grade product that is available.

Unit Trusts/Mutual Funds Invested with this kind of profitability can then be used with great benefits in the all important foundation (SAVINGS) segment of the investment pyramid.

SELECTION OF UNIT TRUSTS/MUTUAL FUNDS

1.1 SHORT-LISTING THE SEMI FINALISTS -

Look for the Best Performing Funds 3 & 6 month and 1 to 5 years and include into your list to inspect whenever you hear claims regarding ‘Best Performing Funds’

- Unit Trusts/Mutual Funds cannot be over bought, so look to past consistent track record.

- Charts never lie – 6 month, 1 year, 3 year and 5 year. Sometimes we choose new funds based on Fundamentals and past track record of that particular fund manager. Also even though a new fund may not be made available to retail when first introduced, the fund may have an initial track record from institutional trading. Eg First State GEM Leaders. …. Don’t buy on emotion eg Lion Capital Vietnam …. sheep mentality gave this non-performing fund the highest volume when introduced. Sbi Forex Rates Today

1.2 ELIMINATING DOWN TO THE FINALISTS -

The aim is to further narrow down the semi-finalists based on what is most likely to move in present time.

Look at recent month’s movements. We want the most volatile. All the semi finalists have good upward trends and they all move almost in synchronization with the main equity markets. The reason is they are not subject to all the little bits of speculative influences that can affect other kinds of investments like individual stocks.

So if there is confidence in analyzing the market, then logically we want to look at the biggest movements which will give the most profits.

For Downside movements we should be out hoping for prices of our picks to go low … the lower the better because when the market bottoms out and we buy back in … our upside will also have the most upside potential.

In any case volatility within monthly cycles of Unit Trusts/Mutual Funds is of no concern even in the long run, so long as the Unit Trusts/Mutual Funds chart displays the best consistent uptrend. …. This includes all the semi-finalists now being further short-listed.