Wednesday, August 30, 2006


One of the better online Unit Trust plaforms that I have come across is Fundsupmart (FSM). FSM provides a compatively better online user experience that is intuitive and has useful features. Furthermore, Fundsupermart, as an online UT distributor, offered lower sales charges than making unit trust purchases directly from the banks.

However, Fundsupermart is facing greater competition today as more and more people realise the lower unit trust sales charges offered online. While FSM usually offers 2.5% sales charges, its competitors like DollarDex, POEMS are offering sales charges as long as 1%, a whooping >50% savings!

While FSM's stand has so far been that it does not wish to start a price war offering lower sales charges, my belief is that it may not have much choice eventually. While POEMS and Dollardex do not have good interfaces today, they are already capturing the market with lower sales charges. All they have to do is to put in some investments and enhance their sites and Fundsupermart will see its market share badly eroded.

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