My Mutual Funds Passed Break-Even Point

After less than a month, my overall mutual fund portfolio has just passed break-even point. This basically means that my portfolio has risen enough to cover the sales charge I pay to buy the mutual funds. Almost all mutual funds break even at some point, but what’s amazing is the speed that my portfolio manages to break even. If you recall, it has been slightly less than a month since I bought the mutual funds.

Just a point to note: my portfolio is pretty susceptible to fluctuations, so it might hover up and down around the break-even point for some time. However, I believe that in the long run, this portfolio can give me quite good returns, with little long term risk. Meanwhile, I started an account with Fundsupermart.com and kept some cash there, using their cash account. The interest rates is better than what I get from banks and I can always transfer it back to my bank account when I need the money. For visitors from other countries, you might want to check up your local websites and see if they offer such accounts too.

Basically, these accounts are extremely low-risk, since they just take your money and park them in banks as an institution. Banks offer better interest rates to institutions and in turn, they pass the higher interest rates to you. The downside is that there is no fixed interest rate, since it’s based on the Interbank rates of around 2% to 5% per annum. Perhaps other countries have bank accounts that offer good interest rates for normal savings account too and do not need such accounts. However, for Singaporeans, I believe that it can be a good place to park our cash, since our normal savings account gives a rate of just around 0.2%, which is ten times lower than interbank rates.

I have some pretty itchy fingers though, so when I parked some spare cash in fundsupermart’s cash account, I couldn’t resist picking up another two funds. I put just a minimum sum in both of them though, so it isn’t anything significant to mention their names. I also think the two funds are more risky than my initial purchase, which is why I only put a minimum sum in both of them.

Anyway, I will be posting my funds’ status every month, around the start of the month, in this blog. If you are interested to know my progress, you can always check back then.