SINGAPORE (Aug 13): Financial planners say retail investors should do more due diligence before buying into unit trusts, and not buy into funds just because they are associated with a famous brand name and have more market exposure.

“Fund performance has little correlation with brand name and market exposure. The key is the fund manager, investment team and processes. Some smaller fund houses may have these capabilities, but do not have the budget to conduct branding and marketing activities,” says Yap Ming Hui, founder and managing director of Whitman Independent Advisors.

Bryan Zheng, general manager of FA Advisory , says passively buying into funds based on their brand name is not the right move. Investors should compare and assess funds from various perspectives before making a decision.

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