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 ...
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