Using FUTU Fund page as a guide to investment in 2023

Hello Mooers!

Welcome back!

Most investors, including Mooers, often trade U.S. stocks such as Apple ( $アップル (AAPL.US)$ ), Tesla ( $テスラ (TSLA.US)$ ), Coca-Cola ( $コカコーラ (KO.US)$ ) and Chart Industries Inc ( $チャート・インダストリーズ (GTLS.US)$ ) that are often found in the indexes such as NASDAQ ( $Nasdaq Composite Index (.IXIC.US)$ ), S&P 500 ( $S&P 500 Index (.SPX.US)$ ), Dow Jones ( $NYダウ (.DJI.US)$ ) and Russell 2000 (RUT). Some may also invest in ETFs that are mostly passively managed such as the SPDR S&P 500 ETF ( $SPDR S&P 500 ETF (SPY.US)$ ) that tracks S&P 500 or the Invesco QQQ ETF ( $インベスコQQQ 信託シリーズ1 (QQQ.US)$ ) that tracks the NASDAQ-100 ( $NASDAQ 100 Index (.NDX.US)$ ). There are also investors who prefer actively managed ETFs like the ARK Innovation ETF ( $ARK Innovation ETF (ARKK.US)$ ), which hold cryptocurrency platform stocks like Coinbase ( $コインベース (COIN.US)$ ) that provide services such as trading of cryptocurrencies like Bitcoin ( $ビットコイン (BTC.CC)$ ) and Ethereum ( $イーサリアム (ETH.CC)$ ), while others prefer actively managed Funds which I will be covering them in today's topic.

As you know, $フートゥー・ホールディングス (FUTU.US)$ MooMoo has a useful Fund page that Mooers can use it as a guide to investing. Inside the Fund page, I often look at the following 4 sections:
1. Best Selling Funds at Banks
2. Trending Themes
3. Rankings (Best RSP Selling)
4. Rankings (Best Selling)

So, in today's topic, I will be sharing on how to use these 4 sections of the FUTU Fund page and one simple strategy to help us in our fund investment in 2023.

Without further ado, let's begin!

1. Best Selling Funds at Banks
Currently, this section shows us 3 best selling funds at banks. There are:
$FSSA Dividend Advantage Fund QDis (SG9999002083.MF)$
$Fidelity Funds-Global Dividend Fund MDis (LU0731783394.MF)$
$AB Low Volatility Equity Portfolio MDis (LU0965509283.MF)$

All these funds either invest in stocks that generate dividends, or they provide investors dividend on a monthly or quarterly basis.

For example, the FSSA Dividend Advantage invests in various stocks such as HDFC Bank ( $HDFC銀行 (HDB.US)$ ), Tencent ( $テンセント (00700.HK)$ ) and Ping An ( $平安保険 (02318.HK)$ ). The fund also provides the investor dividend on a quarterly basis.

Next, the Fidelity Funds - Global Dividend Fund invest in stocks that generate dividends, such as Unilever ( $ユニリーバ (UL.US)$ ), Relx Plc ( $レレックス (RELX.US)$ ) and Omnicom Group ( $オムニコム・グループ (OMC.US)$ ). If we zoom into one of the stocks - Unilever, we will see that Unilever gives 4 dividends in a year.

2. Trending Themes
At the time of writing, we can see 4 themes that are currently trending. There are:
Energy (Fund: $BGF World Energy Fund (LU0122376428.MF)$ )
China (Fund: $Allianz China A Shares (LU1997245177.MF)$ )
Sustainable Growth (Fund: $Schroder ISF Global Sustainable Growth (LU0557290698.MF)$ )
Medical (Fund: $AB International Health Care Portfolio (LU0058720904.MF)$ )

When we look into the BGF World Energy Fund, we can see a positive uptrend chart. This shows us that the fund is generally returning positive returns to the investors. We can also see that some of the top 10 stocks are Shell PLC ( $シェル (SHEL.US)$ ), Exxon Mobil ( $エクソン・モービル (XOM.US)$ ), ConocoPhillips ( $コノコ・フィリップス (COP.US)$ ) and Chevron ( $シェブロン (CVX.US)$ ).

With China opening (*1), we may see a bounce-back-to-action from China funds such as Allianz China A Shares fund, that invest in various stocks in the China A-Shares markets such as Kweichow Moutai ( $Kweichow Moutai (600519.SH)$ ), LONGi Green Energy Technology ( $LONGi Green Energy Technology (601012.SH)$ ), East Money Information ( $East Money Information (300059.SZ)$ ) and China Merchants Bank ( $China Merchants Bank (600036.SH)$ ).

3. Rankings (Best RSP Selling)
In this section, we can see 2 funds rank as the best RSP selling funds. There are:
$BGF World Energy Fund (LU0368265418.MF)$
$BGF World Energy Fund (LU0122376428.MF)$

Mooers may have notice that the BGF World Energy fund offers multiple currency class such as SGD and USD. We also see that the SGD currency class is more popular than the USD currency class, with 200+ investors doing RSP into the fund.

4. Rankings (Best Selling)
In this section, we can see 2 funds rank as the best selling funds. There are:
$BGF World Energy Fund (LU0122376428.MF)$
$BGF ESG Multi-Asset Fund (LU0494093205.MF)$

We notice that ESG is another trend that Mooers are looking at. If we zoom into the BGF ESG Multi-Asset Fund, we can see that it invests in a full spectrum of permitted investments including equities and fixed income that are focused on the principles of ESG (Environmental, Social and Governance). Some examples that the fund invests are: US 10 Year Notes, Greencoat UK Wind and Microsoft ( $マイクロソフト (MSFT.US)$ ).

Special Note: Greencoat UK Wind is listed on the London Stock Exchange and its stock ticker is UKW.

Thus, in summary, the 4 sections provide us which funds are trending right now, and the area of focus is in these areas: Dividend, Energy, China, Growth, Medical and ESG.

Simple strategy - Asset allocation ratio
From the 4 sections, we can see that there are quite a lot of funds that Mooers may invest in. However, Mooers may not have enough cash to invest in them, even if they perform an RSP monthly. Thus, we can use a simple strategy to help us invest, and that is using the asset allocation ratio.

Example 1:
For example, if Mooers have $1000 to invest per month, Mooers can divide their money into a few parts and allocate it base on what they are comfortable with. If Mooers believe that funds that are focused on Energy and China have plenty of room to go up, they may allocate 50% to each fund, meaning $500 to Energy fund and $500 to China Fund.

Example 2:
Another example, if Mooers have $600 to invest per month and beside Energy and China funds, Mooers would also like to have some money in money market funds, such as the $CSOP USD Money Market Fund (SGXZ96797238.MF)$ , $Fullerton SGD Cash Fund (SG9999005961.MF)$ and $BNP Paribas USD Money Market (LU0012186622.MF)$ , and some in fund that give out dividends, then, Mooers may allocate 25% to each category.

This also means that the $600 is allocated in this manner:
$150 BGF World Energy Fund
$150 Allianz China A Shares
$50 CSOP USD Money Market fund
$50 Fullerton SGD Cash Fund
$50 BNP Paribas USD Money Market Fund
$150 FSSA Dividend Advantage Fund QDis

Mooers can use other allocation values that they are comfortable with beside the ones described above.

Hmm... I wonder how many funds do Mooers have.

$BNP Paribas Funds Consumer Innovators Fund (LU0823411888.MF)$ , which focus on companies that innovate and benefit from secular consumer growth trends. Some stocks that the fund invests includes Louis Vuitton SE ( $LVMH Moet Hennessy Louis Vuitton (LVMHF.US)$ ), Starbucks ( $スターバックス (SBUX.US)$ ) and MercadoLibre ( $メルカドリブレ (MELI.US)$ ). I believe that innovative consumer stocks have room to go up as more wealthier shoppers are driving luxury sales (*2).

2. Singapore
$LionGlobal Singapore Trust Fund (SG9999002406.MF)$ , which focus on Singapore companies such as DBS Group Holdings ( $DBSグループ (D05.SG)$ ), Sea ( $シー (SE.US)$ ) and CapLand IntCom T ( $CapLand IntCom T (C38U.SG)$ ). I believe that Singapore stocks have room to go up as more ultra-wealthy families from all over the world are coming to Singapore to set up offices (*3).

3. High Yield Bonds
$Schroder International Selection Fund Global High Yield (LU0189893018.MF)$ , which focus on high yield bonds of companies such as Carnival Corporation ( $カーニバル (CCL.US)$ ), Community Health Systems Inc ( $コミュニティー・ヘルス・システムズ (CYH.US)$ ), Enbridge Inc ( $エンブリッジ (ENB.US)$ ) and LifePoint Health Inc (LPNT). I believe High Yield bonds is bouncing back into action as these high yield bonds from the mentioned companies returns 7.375% to 9.75%, which is higher than the U.S. 6.89% I bonds. The High Yield bonds' returns are also higher than most of the Singapore Saving and Fixed Deposits, which returns are much lower than the Singapore Nov 2022 6.7% and Dec 2022 6.5% headline inflation.

Before I end this topic, I would hope to see more features such as the 'Top 3 Best selling funds from each fund houses', 'New Funds for the Past 3 months', 'Top 8 Best Selling Funds for the Past 3 months' and 'Top 8 Best Selling Funds for the Past 6 months' and also more funds from various fund houses to be listed in the FUTU Fund page in the near future.

Lastly, please feel free to visit my other posts listed below on various topics such as investment ideas for Q1 2023, food inflation, market trends and MEME stocks.

References:

*1: China reopens borders in final farewell to zero-COVID

*2: Gen Z is driving luxury sales as wealthy shoppers get younger

*3: More ultra-wealthy families setting up offices in Singapore, and they’re not just coming from Asia