Posts Tagged ‘bonds’
Is it still safe to be in “safe” funds now?
Posted by: admin in Unit Trust on May 11th, 2009
Have you realized that the Bond Funds prices has been consistently dropping lately?
The Insider understands that Equity and Bonds generally in opposite directions to each other, like a magnet’s South pole and a North pole. The big difference is that the Equity fund is a bigger “magnet” then the Bond fund.
So we see how the Equities, a.k.a. the Stocks, have a BIG influence in how the Bond funds would react.
I took a couple of Bond Funds to compare against a popular Equity Fund, the DWS China Equity Fund in the past 6 months. Do you see the “magnetism” between them?
bonds movement against the equity fund
I don’t think anyone would like to be invested on a fund that is dropping, but channelling 20% of your investment into an Equity Fd for a small start could be rewarding in the long run.
I don’t believe in Unit Trust until I found this..
Posted by: admin in General, Unit Trust on February 17th, 2009
Performance of stocks from year 1925 to 2000
Some of the top reasons I’ve encountered by the people who don’t invest (or re-invest) is that it’s too risky, or it’s not a good time to buy in. There are another group of people who consistently see no “luck” in their investments, always losing the moment they go into that new fund/s.
These people usually have one thing in common - they usually see Unit Trust and its counterparts as a short term investment instrument.
Stretch it to a 10-years period or more and you’ll begin to see the opportunity right up there in the chart, almost regardless of when you come in. This is the most ideal period for accumulating funds for children education funds or retirement/old age funds.
Can’t manage your own investment? Working with a competent adviser with a cool head would be a good idea. Though the volatility nature of this investment can be a roller-coaster issue, one will eventually come out a winner with time on his/her side and sound investment fundamentals. I will discuss more about unit trust investing tactics and strategies in the near future.
View the full chart here (this will appear in a new window).
Have a burning question? Let it out here.