Why I Keep Losing Money in Unit Trusts: Lessons Learned
A change of mindsets - from paper hand to diamond hand.
"I’m really frustrated with Unit Trusts. They always seem to lose money.”
“I think it’s better to just save in ASB or EPF.”
“Look at this, my Unit Trust consultant advised me to invest more with Eastspring, but look at the return in year 2022 and 2023. it sucks!”
“I rather save my money in ASB, at least it won’t lose money.”
People, since when did I say that investing in Unit Trusts is a short-term thing?
No one plants a durian tree today and expects to it to bear fruits next year! - That is ridiculous.
If you only invested for two years, 2022 and 2023, of course you would see losses because the market dropped in 2022.”
If you then give up and sell all your units, you’re guaranteed to lose money."
But…
If you can be patient, like waiting for a durian tree to bear fruit, you’ll see the rewards in 2024
Unit Trust investment returns as of July 2024 have already reached 19.92%, which is almost a 20% return in just 7 months.
This is my main point.
If you want to invest in Unit Trusts, it must be for the long term. The minimum investment period should be at least 5 years
If yo don’t have a “diamond hand” when I comes to investing. you are NGMI (not gonna make it)1
You need a change in perspective when it comes to investing. it's not about making fast cash. you can do that doing trading, monitoring stock market go up and down infant of your computer scree.
But i’m not in favour of that. But if you want to be a successful investor, you need change your perspective.
If you invest for 5 years. consistently, it looks better. 👇🏼
Do you want to see if you invest RM500/month for 19 years -CONSISTENTLY?
Eastspring
Your total cost is RM114K
Your total return is RM389.6K
But if we save, then withdraw, then save again, then withdraw again, we definitely won’t reach this amount for the rest of your life
But you might ask, what if I put the same amount of money every month into ASB?
If this year 2024, ASB declare 6% dividends (just assuming)
ASB
ASB still lags behind Eastspring. - we ar talking a difference of RM156K difference.
Change your mindset, change your life. When you shift your perspective, you open up a world of new possibilities
-The end
*These terms Diamond hand & NGMI are part of the broader slang used in the investment and crypto communities to express confidence or skepticism about investment strategies and market behaviour