bad performance of unit trust

[Hanks]

Hi,

I had a unit trust taken out in 1996 by a family member.I've taken control of the unit trust but have noticed the unit trust has been performing horribly.I see that i currently have around R70 000 but i've only received + -R5000 in return (interest + dividends).Can anybody explain how it can be so low ?

 

[supersunbird]

First you have to tell us the name of the unit trust. Without that we cant tell.

 

[Hanks]

First you have to tell us the name of the unit trust. Without that we cant tell.

Investec growth fund R

 

[supersunbird]

So was R70 000 the initial investment amount?

Because if it was something doesn't make sense:

http://www.equinox.co.za/unittrusts/funds/funddetails.asp?fundid=15781

http://www.moneyweb.co.za/moneyweb-click-a-unit-trust/investec-growth-fund-2?sn=2012+Detail

It should at least have doubled over just the past 5 years and more over 10 years.

 

[Hanks]

Hi

No , it was orginally R500 lump sum , with R50 monthly.It then went up to R150 per month debit order untill now.

 

[supersunbird]

Hi

No , it was orginally R500 lump sum , with R50 monthly.It then went up to R150 per month debit order untill now.

Well, that's the answer possibly. So is R70 000 the total amount put in over time? It depends how long it stayed at R50 and then at R150, but yeah, its should be double whatever the amount in 2009 was. And about triple what the total sum was in 2004 if I read the graph correct.

 

[Hanks]

Well, that's the answer possibly. So is R70 000 the total amount put in over time? It depends how long it stayed at R50 and then at R150, but yeah, its should be double whatever the amount in 2009 was. And about triple what the total sum was in 2004 if I read the graph correct.

The amount put in was around R65000 and then the interest gained was R5000.I find it strange that when i had some money in a 32 notice account with the bank , i got interest of R5000 in 1 year and had around R50 000 in that notice account.However it has taken 16 years to get R5000 from a unit trust.

 

[supersunbird]

The amount put in was around R65000 and then the interest gained was R5000.I find it strange that when i had some money in a 32 notice account with the bank , i got interest of R5000 in 1 year and had around R50 000 in that notice account.However it has taken 16 years to get R5000 from a unit trust.

Something wrong with the sums, even if you had contributed R150 every month since January 1996 with the R500 lumpsum, the total contributed would only be R34 700 (and thats projecting to the end of this year), so if there are R50 somewhere in there it would be even less.

 

[Hanks]

Something wrong with the sums, even if you had contributed R150 every month since January 1996 with the R500 lumpsum, the total contributed would only be R34 700 (and thats projecting to the end of this year), so if there are R50 somewhere in there it would be even less.

View attachment 142362

ok thanks.Let me check my sums and see what i come up with

 

[Shoaybd]

I don't think your sums are right. I have invested 500 in a unit trust from 98 and have received 12% return after fees. Made about 20k gain. Most unit trust have performed very well over that time period.

 

[Shayd]

Based on the info you have given the return was actually spectacular.

Secondly if you are reading a statement that mentions total interest paid instead of something like growth then it's because this isn't and interest based unit trust. It sounds like a balanced or equity fund. Which means very little interest would have been paid, most of the return would have been dividends and capital growth.

 

[Hanks]

Based on the info you have given the return was actually spectacular.

Secondly if you are reading a statement that mentions total interest paid instead of something like growth then it's because this isn't and interest based unit trust. It sounds like a balanced or equity fund. Which means very little interest would have been paid, most of the return would have been dividends and capital growth.

Hi , yes you are correct.i phoned investec today and they said the interest would be low as it's a capital growth fund.i did calculate that I've only had a 140% growth , when in fact my money should have grown around 350%.investec said they would do some calculations and check
for me.