As of April 2006, there are some 35 mutual fund companies registered with the Securities Commission. These manage a total of 361 funds. Now this may not sound like a lot of funds compared to the 10,000+ funds that are available in the US alone or the hundreds of thousands of funds in the mutual fund universe. However it is still mind-boggling array of choice for the unitiated.

How do you know the fund is any good??

Based on what the salesperson or bank rep tells you? Duh!!! I don’t think so. They earn a commission/bonus to push whatever fund that their company is setting a target for.

This is especially so when you consider that most of the sales agents and bank reps possess only a superficial knowledge of the funds that they are selling, and even less knowledge about macro factors like the economic outlook, world conditions, interest rates etc. Of course I’m making a generalization here – there are some “professionals” around but not so easy to find. At the same time, investing is a two-way street – investors themselves also need to get more savvy and not expect their agents and remisiers to behave like fortune-tellers who can forecast where the market is headed.

Generally, a lot needs to be done still to raise the awareness of the general public on how to invest and what types of instruments they can invest in. Perhaps, this is another one of the “life skills” that should be taught early on in school rather than waiting for the individual to finish school, start work and figure it out for himself or herself. Most people never get it though and I know of countless people who are lucky to even make it through the month with a +ve in their bank account. 

But I digress —- which ARE the best funds in Malaysia?? I thought it would be interesting to do a comparison. Read on….