Yesterday my Unit Trust Consultants paid me a visit. To explain to me what is happening to my investment. I have put quite a substantial amount (by my standard which to some people maybe peanuts) into this investment hoping I will make better returns than what I would get from the banks.
With the current situation in the world and in the country itself, all my current investment has accumulated negative profits. Their advice to me which I already know actually but pretend a little bit like I don’t know is
1. don’t panic ( I’m not )
2. do cost averaging, meaning buy some more units when the price is low, therefore I will recover faster and make more profit when the time come to sell (makes sense, I will think about it)
3. the China funds will increase because the Olympic is just around the corner ( I really hope so), otherwise wait for Chinese New Year time
4. the economy is expected to start recovery next year
5. the price cycle is 3 years (I guess that you will have the opportunity to sell every 3 years)
6. historically the share market always revives back no matter how low it gets to
After briefing me, I told them firmly to take care of my investment because the money came from my hard work earnings every month not from some inheritance or lottery prizes. I hinted a bit of threat to pull out and a little bit of helplessness to reduce the effect and got some promises that my funds will be taken care of.
Actually looking back historically (I just started with them early last year), they have been taking care of my investment and able to give me between 9-15% return for less than a year for the funds that they sold already but they were smaller sums. I am waiting for my bigger funds return and hopefully to be able to trust this system as an investment tool.
