Invest
75% Of Investors Lost Money
By Financial Planning Central  •  December 10, 2012

Yes, you read that right. 75% of investors lost money. That’s the statistic given by a trainer who used to work for a well-known international bank.

To be specific, he said 75% of the bank’s clients who bought unit trust lost money. Ah, the big bad unit trust…

Before you start throwing rotten eggs at fund houses, there is another stunning statistic you must take into account:

The average holding period of the portfolio was just 6 months! Meaning to say, the average investor change all his/her portfolio holdings every 6 months.

So how does the two numbers add-up? I will come to that later.

The reason for bringing up these two statistic was that the trainer was trying to explain the benefits of dollar-cost-averaging and free switching respectively. To the trainer, the reason for 75% of unit trust investors losing money is because of market timing, to be more ...

...
Read the full article
By Financial Planning Central
Tiang Chuan is a Independent Financial Adviser (IFA) with PromiseLand Independent Pte Ltd, an Independent Financial Advisory Firm. One of the reasons that propel him to join the Financial Advisory industry is the realisation of the importance of proper Financial Planning due to the experiences in his growing-up years. Read about his story to know more about what he went through
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance