Before Freaking out Investment Market, You Better Read This!

Image result for image of frightened cartoon face

Few days ago, I bumped into one of the most prominent investment blog forums in Malaysia. I was trying to find what other unit trust investors are saying about their investment experiences. I was shocked to find out one of the investors said that his investment has lost about RM 20,000.00. He regularly invested RM 1,000 a month for the past 9 years. And now, he was disappointed that his investment incurred such a huge lost. He was asking what he should do right now.

The forum master did give some comment for him to consideration but it did not satisfy his quest. He insisted to be told what he should do immediately with definite action, to withdraw with the lost or continue with his regular plan.

Lack of Financial Knowledge

I was shocked with his case not because of his huge amount lost. I was shocked for the fact that the lack of financial knowledge or proper investment guidance that has threatened this investor.  From there I joined in for the “rescue” effort to give some of my advises and suggested him to come to read my unit trust investment educational blog articles.

As I read further I have also discovered that was not the only case with investor with poor financial education.  There were many similar cases where investors were experiencing losses out of several years of investment. Some invested for 4 years, some 5 years and so on.

I also read some of the “helpful” readers who offered some kind of keen advises as well. Through those responses, I found out how innocent and pathetic unit trust investors are in Malaysia generally.  For example, one of the advises offered asking them to keep their investment for “long term” and they will be fine. I am sure this advice was picked up from professional sale agents. As if the idea of “long term” investment has its magic spell for investment profit. In fact, no one has any definite idea how long does the “long term” mean. Does 9 years not enough to define as “long term”? Why is it the above first case scenario incurred such gigantic loss too?

Investment Profit

Actually investment profit is not guaranteed merely by the length of time you invested. It depends on the time when you check on the performance of your fund invested. For unit trust investment, you have a better advantage than stock investment in the way that, most fund performances follow macro market trend or the market index where the fund is invested.

Chart A ~ Malaysia stock market index is on the down side right now

If you began your unit trust investment for Malaysia market, whether in lump- sum or dollar cost averaging, around  2016-2017, you will surely see your investment incurred losses by now whether you used one time or lump sum investment approach, or dollar cost averaging, all of you will not be exempted to see losses right now. Why? Because market index now is lower than the time you started.  (see chart A)

But if you have checked your fund performance at early 2018, you will be happily dancing to the moon, because Malaysia market was at its peak that moment. But somehow, all your profit evaporated when market went down since after then, because you did not know you need to harvest your profit for your own advantage. You were not taught about market sentiment and market cycle. If you are in that case, please do yourself a favor, read through this web blog articles, especially on the subcategory on Unit Trust Investment Strategy. Investor has to be alerted about market cycle as well. If you have not subscribed to this blog website, please do so while still early.

After that, I went to read student comment from Online Financial Training Course (conducted in Mandarin). Out of a sudden, I was very much comforted and felt proud of those who have gone through the lesson. Because their feedback on the review of the course really gave good answers to those questions being asked in that blog forum.

Investment Strategies

Even for dollar cost averaging strategy, though it is still a good and recommended strategy to use, it does not guarantee profit all the time. Please read Misleading Information 5: Regular Investment Plan is a very Safe Investment Plan. And all other common misconceptions about unit trust investment are all being dealt with under Rectifying Misleading Information about Unit Trust Investment. If those miserable unit trust investors would have come to read these valuable articles willingly, all their frustrations and doubts will all be answered here.

One of the forum posts was so angry that in his post, he threatened to dump unit trust investment all together and go elsewhere. If he does, he will make the most miserable decision in his life. In fact, this will be the worst time to freak out market investment, if they come to understand the nature of unit trust investment with tandem with market sentiment in their later stage of investment journey. The detail on what to do now, I have already posted in my Facebook page on “Investment Interest Group”. (Please do a Facebook search and make sure you have signed in to follow for relevant market updates.

If you asked me what should you do with your losing unit trust investment, please read my blog on Malaysia market future projection and global market perspective  in near future. I am sure you will know what to do.  If not, please write your case at the comment section below or write to me personally. I would be happy to help you without any fee. Your lesson learned is my greatest profit and joy.

Press Here to go to Front Page

Please press “like” button below this article (if you have not done so) for email alert whenever new releases are out for public viewing. If you have any comment, please make use of the comment section below for readers’ interaction.

Disclaimer

The view and opinion expressed are personal views of the author and are subject to change based on market and other conditions.  This write up does not constitute sole advice for investment decision. Investors are advised to do further reading and research to conclude individual decision.

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s