HEAD-TO-HEAD: Invesco vs Morgan Stanley

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The Invesco fund’s FE rating, which measures alpha, volatility and consistency of returns over the past three years, is one crown out of a possible five. The Morgan Stanley fund gets five crowns.

Ng believes that one fund is not necessarily better than the other because of the differences in their strategies.

For long-term investors who want exposure to global equities markets for one economic cycle, which is around eight-to-10 years, the Morgan Stanley would be a suitable consideration, he said.

“It has a strong long-term track record and it invests in companies that the managers believe will be able to sustain growth over the long-term.”

However, he noted that investors should be aware that the focus of the fund is growth companies and that it has a concentrated portfolio in the IT and consumer discretionary sectors.

In addition, investors should be aware that shorter-term, the fund may underperform during market rotations, such as when value stocks are more favoured that growth stocks.

For investors who want mainly downside protection, Ng recommends having a closer look at the Invesco fund, especially during periods when there is high volatility in the market.

“If you are expecting the markets to be more volatile and have more uncertainty over rising interest rates or political concerns, then the Invesco fund is something you should consider. It will give you global equities exposure but at the same time should have lower volatility than the benchmark.”

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