It is important to educate ourselves in any investment instrument. After a certain period of investing, you should know how they invest your money, how the up and down unit price occur. This will make our strategy on investing is more better. Here are the strategy:
1. PCIF – Although the fund shows tremendous performance but the unit price is still not achieve the break even. Investor who were bought at launch period with the price RM0.25 still did not see any positive profit of their fund. So, what to do ? This is so called knowledgeable investor. If you bought say RM10 000 at price 0.25, so your cost perunit is around 0.25 sen. The price started to drop since the first day launching and now the price is about 0.20 sen. Means that your unit price is still not above the cost perunit. Meaning to say, your fund was lost. Smart investor, long term investor will do something to average down their cost perunit. How ? It can be done by do additional unit. When you buy more unit, it will average down your cost perunit of trust fund because you buy the unit at low price compare the first time buying unit.
2. If you not satisfy with the performance of your fund, choose the other fund like PIDF, Ittikal by doing switching. You have to bare the cost but we can hope the new fund will cover all the loses cause by switching
In other words, investor have to start learning how to make good investment. Unit trust consultant will advice based on their experince, knowledge, intuition etc, but at the end of the day ‘this is your money’ you should know where your money gone. Combination of knowledgeable investor and helpful agents will contribute a better strategy in investing in unit trust.
What ever it is, the key words on investing in unit trust is to put in our mind of LONG TERM INVESTMENT. But it is not only to depend on the agent to manage your money, but investor should also gain the investment knowledge so that agent and investor can work together for better strategy to invest the money.
Last word, spend a little bit of your time with your agent and ask them to explain the basic theory on investing in unit trust. I’m beleive, unit trust is one of the best instrument for long term saving.