Stress

I have just lived thru a weekend of hell. Spent my bloody sat and half of sunday reading up on a TWC case study and doing a report. The torment will just get worse as the mid-terms approach. I still have tons of stuff like fund manager proposal and CT journal to look forward to. OMG!

Jiayou!

Finance Info

Here are two ratios that are used widely to assess the profitability of mutual funds.

Sharpe Ratio

Sharpe Ratio = (Portfolio return - risk free rate)/ volatility

Risk Return Ratio

Source: Fundsupermart

The higher the sharpe ratio and risk return, the greater the prospects of the unit trusts.

It is possible to have a positive risk return ratio and a negative sharpe ratio, this means that the unit trusts have underperformed the market risk free interest rate; you would be better off buying bonds or putting your cash in fixed deposits. I think it's really hard to find funds that outperform STI so your next safer bet should be index funds like STI ETF.

Talking about STI, for those who short it, congrats to you. For those on long term position, let's hope CNY does some wonders and pray for a rally.