Thursday, October 9, 2008

The returns on unit trusts over long term

Recently I did a bit of research on to find out the long-term return of unit trust funds. I summarise the results as follows:

Offshore funds -
There are 92 funds with 10 years or more track record.
Over the 10 year period, the median return is 9.69% per annum (Investec GSF Sterling Bond Fund)
The best return is 27.43% per annum, achieved by the Investc GSF Global Energy Fund A.

Domestic general equity funds -

There are 4 funds with a track record of 20 years or more.
The best return is 18.35% p.a., achieved by Investec Equity Fund
The worst return is 13.95% p.a., produced by Sanlam General Equity Fund

There are 17 funds with a track record of 10 years or more.
The median retun is 12.97% p.a. (Gryphon All Share Tracker Fund)
The best return is 17.12%, achieved by Futuregrowth Albaraka Equity Fund
Investec Equity Fund has been consistent over the long term, achieving second place with an annualised return of 16.57% p.a.

The above figures demonstrate the inflation-beating returns produced by equity funds, with returns exceeding inflation by about 5% to 7% per annum on average.

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