Wed, May 10, 2006 - Page 12 News List

Financial experts opt for overseas funds

By Jackie Lin  /  STAFF REPORTER

Most personal finance specialists prefer overseas funds over local stocks and domestic funds, according to a report released yesterday.

The survey, conducted by the Securities Investment Trust and Consulting Association (證券投資信託暨顧問同業公會) and Winner (贏家) magazine, a Chinese-language monthly, interviewed 508 traders between April 11 and April 22 to get a picture of their investment preferences.

Nearly 49 percent of the respondents chose overseas funds as the best investment targets, followed by stocks (23.3 percent), domestic funds (23.3 percent) and foreign currencies (2.3 percent), the survey said.

The respondents said their experiences revealed that stock investments reaped the poorest performance, with 16.3 percent saying they made losses of between 10 and 20 percent and 39.5 percent making profits of less than 10 percent.

In stark contrast, 46.5 percent of the traders said their overseas funds earned annual profits of less than 10 percent, and 34.9 percent made profits of 10-20 percent.

Overseas funds provide exposure to a range of global economies, including emerging markets.

The government has approved around 800 overseas funds over the years, with the market estimated at NT$100 billion (US$3.17 billion), according to Winner.

The market was expected to further expand as the number of funds available tops 10,000.

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