[GPGT]Low risk, high return

[wahkao]

[GPGT]Low risk, high return

Here is the low risk, high return illustration
Low risk high return opportunities do exist. But they are rare. maybe out of 100 opportunities , only 5 are low risk high return. The rest are rubbish :o
[Image: qQkME1Q.png]
source:
http://mycpf.cpf.gov.sg/NR/rdonlyres/309...Q22012.pdf

[kagemusha]

So CPF falls in C quadrant then.....hmmmm

[yeokiwi]

Over the three-year period from 1 July 2009 to 30 June 2012,

The period chosen is lousy. If they had added another 3 years prior before 2009, I think the quad chart will be much uglier.

[kagemusha]

This chart is self defeating from CPF... it clearly shows that there are much better investment from existing products (even within the C quandrant) that offers better returns than CPF. If we as participants were given a choice, there is no doubt the choice we would make.

[yeokiwi]

This chart is self defeating from CPF... it clearly shows that there are much better investment from existing products (even within the C quandrant) that offers better returns than CPF. If we as participants were given a choice, there is no doubt the choice we would make.

Look at the tables and take a look at the 3 years and 5 years fund performance.Four out of eleven of the Quadrant A funds, they could not even beat CPF over a period of 5 years.

The report is simply absurd in presenting the data. The quadrant chart is simply misleading and if they had plotted the 5 years fund performance, most of them will end up in quadrant D.

[kagemusha]

Sorry but how do you get that?
Annualise returns for CPF (considering if you use SA at 4%) the annualised monthly returns is only 4.07%.

[yeokiwi]

Sorry but how do you get that?
Annualise returns for CPF (considering if you use SA at 4%) the annualised monthly returns is only 4.07%.

Look at the 1 year, 3 year and 5 year fund performance
The 5 year fund performance for CPF OA is at least 12.5%.
The 3 years performance looks good simply because of the period Jul 09 to Jun 12.

[Image: 2n87hg6.png]

[specuvestor]

^^^ Nice... timing is always important for anyone who has done marketing

That's why I always believe asset allocation timing for the medium to long term is important. To say fundamentals doesn't need to time does not fit into observation

[yeokiwi]

^^^ Nice... timing is always important for anyone who has done marketing

That's why I always believe asset allocation timing for the medium to long term is important. To say fundamentals doesn't need to time does not fit into observation

Yes. If we bring in the SA return (> 21%), the 5 years return for fund performance is even uglier.
So, given these choices of investments, I rather keep my money in CPF accounts.

[kagemusha]

I wonder how the picture looks over a longer term period, maybe 7 - 15 years time frame.
2007 - 2012 are not exactly vintage years nor representing how the stock market performs generally.
While I agree that CPF provides a form of safe harbour in times of uncertainty, it certainly is not the most efficient allocation of money either.
Public money and accountability could be the reason, but 2.5% is not exactly compensating for the effects of inflation.