Look at the chart below. This fund was incepted more than 12 years ago. In all time periods whether it is 12 years, 5 years, 3 years or 1 year period, it underperformed the benchmark (which is MSCI Europe). While I do not advocate frequent trading, it is important to monitor the performance of the fund. The performance of the fund and index is converted to Singapore dollar.
How about the risk? In the chart below is a plot of the rolling 3 months weekly annualized volatility of the fund and benchmark. It shows that the risk of the fund is almost identical to the benchmark. Thus, the investor is worst off because he gets a poorer return yet suffers the same risk as the market.
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