Choose the right fund

Dear Mr Tan,

There are so many investment funds in the market. How do I make the right choice? Should I chooce the China and Indian funds that are likely to do well over the next few years? Any advice?

MY REPLY:

Choose a large, well diversified fund fund that have low upfront and annual expenses. Preferably, chooose an indexed funds, such as the STI ETF (exchange traded fund) or the S&P 500 fund (in America).

Invest 80% of your savings in these funds. For the remaining 20%, you can choose the fund that appears to be exciting, such as the China or India fund. However, you must select carefully, as the stocks in China are now too highly expensive.