After slightly more than 4 years, I finally decided to liquidate my unit trust portfolio completely. I entered sell orders for all remaining portfolio worth $217,000.00 last Monday. The full proceeds will be available by next Thursday and I plan to inject the fund into my low cost portfolio.
Through the unit trust experience, I learnt about diversification, portfolio allocation, sitting tight, and taking long term view when investing. It helped me in formulating the strategy for my low cost portfolio. I enjoyed the investment talk that Fundsupermart organized. Though there were marketing talks, but there was also precious nuggets that I picked up from the fund manager when they shared their thought process while making investment decision.
I also enjoyed the exclusive dinner invitation, which were held in 4-5 star hotels. You'd get to hear the fund manager sharing his/her view and thought process, while enjoying a decent 3 course meals, a nice cup of coffee with a small piece of chocolate. Unfortunately I didn't get the invitation this year, which made the decision to exit easier .... lol. Well, the platform fee which could amount to $800+ per annum was killing me. So it's time to say good bye.
iFAST IPO price was 95 cents. It went up to as high as $1.51. Recently it traded around 93 cents, which was below its IPO price. With many investors awake to the idea that they can build their own low cost portfolio with ETF or dividend stocks, I think iFAST will have challenges and headwinds to continue their business model of collecting ongoing fees. iFAST already felt the heat and has revised down their platform fee. It will be interesting to see if iFAST current business model will last.