You have a good practice. Bravo. Regular investment monthly is practicing 'dollar cost averaging'. This is the best way to optimize return and minimize risk. Plan for your goal and don't be fear when market is bad. When market recover, and achieve your goal, sell off your unit and redeem cash. Just like what i did in 2002 (after 911, during US-Iraq war) Two years when market recover, I earn 50% return. Believe me, market will recover. It's a cycle. To know more, email me at unittrust8@gmail.com, or visit http://unittrust8.blogspot.com

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Added on December 7, 2008, 8:32 pmhi,
Invest 5k once is NOT dollar cost averaging. It's LUMP SUM investment. You can break 5K into smaller portion and invest say 200 monthly. There is an explanation of dollar cost averaging in http://unittrust8.blogspot.com. Invest in Unit Trust should NOT be governed by greed. Invest medium to LONG term will benefit. Plan for your goal, once your goal achieve, sell off and gain back your return. I gained my 50% return in early 2008 before market crash in 2nd Quarter 2008. Of course, you need to choose a reliable and reputable unit trust company. To know how I do it, email me at unittrust8@gmail.com




edited: Minimized the size

This post has been edited by b00n: Dec 8 2008, 01:16 AM

Ok take for example during economy boom time for example last two years, assuming that you bought 200 per month. Right now almost all the fund depreciated 50 - 60% already... How long will it take to recover ? Probably 10 years and some fund cannot even recover as you got to see what type of stock they invest into.

I would prefer buying one lump sum during recession when you feel that the price is ok.

Investment is never an easy job like keep on pump money without seeing the market conditions and what the fund invest into is very important too.

This post has been edited by b00n: Dec 8 2008, 01:17 AM

For your info, i started to increase my investment last 3 years ago in 2005. Also, for your info, market in 2 years ago, 2006 is not really good. It started to recover in early 2007. At that time, I already realized and knew recession going to hit us in 2008 or 2009 based on 10 years recession cycle. Luckily, greed never governed my instinct. I cut down my investment and slowly sell of my units in 2008 2nd quarter. You can say luck or anything, but I feel that's the magic of 'dollar cost averaging'. It really minimize my RISK. Because we will NEVER know when the PRICE IS OK. unittrust8@gmail.com




edited: Minimized the size

This post has been edited by b00n: Dec 8 2008, 01:18 AM

Thats shows the importance of MARKET TIMING in investment like what i said

If not y you need to reduce your monthly 200 saving of (dollar cost averaging)
Y should you sell off your investment ?

This post has been edited by b00n: Dec 8 2008, 01:18 AM

Bare in mind about your fonts, it is irritating to others, you might get warn because of it.

A friendly reminder.

I like your question.

I sell off a lot of unit in early 2008 because I have reached my goal that I had set back in 2005. Then now, I still keep on buying in a small scale / reduce my monthly investment in fund that have drastically drop in price. (of course it must be a good performing fund) CONCLUSION > I change my strategy of investment but I still stick to 'dollar cost averaging'.

Yes, no doubt MARKET TIMING is very important. If not, that is not investment. That's call gambling or blindly lose money.

unittrust8@gmail.com

p/s. - Sorry moderator, I don't mean to enlarge my font..BIG apology

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Added on December 7, 2008, 10:20 pmSorry moderator, I don't mean to enlarge my font..BIG apology

This post has been edited by shawn8: Dec 7 2008, 10:20 PM

Just fyi,

In forum, typing in bigger fonts or cap indirectly implied shouting at others.

We always welcome anyone to post/share information, idea, view etc.

Cheers.

When you mentioned INVESTMENT...then surely it will come with risk. No investment is without risk...just that how risky it is.

High risk, high return. Low risk, low return.

If you wish for a safe investment...FD is the best...but the interest rate is getting more & more puny

Government-backed unit trust....like ASN, ASB...r consider quite safe as well...

Else, independent UT (PM, CIMB, UOB, etc, etc) will also offers different risk categories of funds that might suit you.

You have time on your side...with almost 7-8 yrs down the road, so i suppose starting early is the best. So, u can try to plan out something to grow your money better (or at least not shrinking with inflation)

Anyway, it is good to know youngsters like you have already starting to save & think about your future financial planning. Keep it up

wat u think of this?

1. invest in membership-minimum USD500
2. club guarantee buy back 100% in 5 years
3. earn referral bonus
4. earn line bonus
5. earn group bonus
6. earn yearly dividend
7. members benefit also got

You do know which topic you're in ... right?
This topic is to talk about "Fund Investment" not about membership referral.

Appreciated all the warm replies but...after all the reading I still don't know what should I do with the money? More specific abit can ah?

tq

Lol save inside ASW, ASM easy and moderate return. Average 7% interest.

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Added on December 8, 2008, 2:52 pmOk then As i not really agree on the statement that you posted

<<For investment, anytime is a good time. If you save your money in bank, the money may get depreciate due to inflation. So, I would recommend that you practice 'dollar cost averaging' . set aside certain amount say 40% for saving 60% for investment. regular investment a month once can ensure you optimize your investment and lower your risk. you can visit http://unittrust8.blogspot.com for more info.>>

As i think this is what most unit trust agent will tell their client which actually is not true. Market timing is very important.

Simple

Buying a good fund at low price and sell it later at higher price or you can choose to keep it if it can give you good dividends.

If you know at that time the fund price is expensive will you still buy it? Thats is what i trying to say. Certainly no right?



This post has been edited by darkknight81: Dec 8 2008, 02:52 PM

[quote=darkknight81,Dec 8 2008, 02:45 PM]
Lol save inside ASW, ASM easy and moderate return. Average 7% interest.

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Added on December 8, 2008, 2:52 pm

But I heard ppl saying ASW and ASM are sold out ?

Now, may be anytime is a good time to invest.

But it is defintely not (anytime is a good time) when market was high like last year or so. Ask those had invested in UT one, loss 30% considered very good already, a lot of them are suffering 50% of loss which might take more 3-5 years time frame before can reach breakeven points. Breakeven only, not yet counted the opportunity loss of FD interest over the years.

UT performance is as identical as equities market, a little bit of timing need to apply to achieve some good performance, otherwise it might poorer than FD as well.
You don't need to time precisiely, just little bit timing like stop investing or sell a bit when market had risen too much and market behaves not rationally time.

[quote=B u B u,Dec 8 2008, 03:04 PM]
[quote=darkknight81,Dec 8 2008, 02:45 PM]
Lol save inside ASW, ASM easy and moderate return. Average 7% interest.

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Added on December 8, 2008, 2:52 pm

But I heard ppl saying ASW and ASM are sold out ?

[/quote]

That is d major downside to all these ASN, ASB, etc.

Always sold out...in fact, rumours said that insiders mostly bought all...and worst...u hav to queue so long in order to buy.

But it is all because it is safe safe with gov at d back & giving decent returns

so is it still available?

Too bad to say that you have to wait for next round. By the way, you could get more info in the ASx thread.

So how do we know when is the good time to sell? Any charts or statistics to refer to? If yes how to interpret it?

As long as you're not losing upon factoring the upfront service charge. You can sell anytime depending on your profit goal.

Though timing in investment is very important...however, we can never sell at the highest or buy at the lowest. You can use some of those share market analysis tools to help out, but it is difficult for laymen like us, understanding is one thing, learning to use it is another thing!! Therefore, it is very tedious job...

One of the best way is to set your own target...if u set return of 30%, once it reached, then you can sell to do some profit-taking. If you think the market will still go up...u can consider selling in batches.

well, u might feel awful that the market went up further after you sell, but hey...at least it is profit!!! U will feel much better if the market went down after u sell. In short, thats human...always greedy & always fear

Therefore...fear when people greed...sell when the market is on super bull....just like 2007

Greed when people fear...like now