18/10/2023
An investor told me that he wants to wait for the market to ‘go up’ before he starts i.n.v.e.s.t.i.n.g. in unit trust..
In my time as a UTC, I often hear this.. It is my job as your UTC to help you understand why this is not the best strategy..
If you decide to wait for the market to go up, tidak juga salah… but, you are loosing the opportunity to buy at a discounted rate/price..
Don’t wait for the price to go up, baru mau start s@ving/i.n.v.e.s.t.m.e.n.t... Anytime is the best time to start your i.n.v.e.s.t.m.e.n.t., especially when the market is down.. why? Here is the reason why..
For example, if the price per unit is 20cents..
With RM100, you can buy 500units..
(RM100 / RM0.20)
Another example, if price per unit is 25cents,
with RM100, you can only buy 400units..
The aim is to get as much units, so that when the price goes up, your i.n.v.e.s.t.m.e.n.t. will appreciate in value..
Let’s say, if the price goes up to 30cents:
With 500units, your i.n.v.e.s.t.m.e.n.t. appreciates to RM150..
With 400units your i.n.v.e.s.t.m.e.n.t. only appreciates to RM120..
That is RM30 difference, imagine what difference does it make if the i.n.v.e.s.t.m.e.n.t. amount is bigger..
Unit trust i.n.v.e.s.t.m.e.n.t. works when we buy at the cheapest price (or as they say, market is ‘down’) and ride the market as it steadily improve over 10 years, 20 years, 30 years time.. in between, mmg ada naik-turun-naik-turun… why? Because the market is affected by current events; politics, war, pandemic etc..
Starting to i.n.v.e.s.t. when the market is ‘up’ will cause us to loose the earning opportunity and we don’t want to loose right?
So, jangan tunggu lama-lama.. Just start RM100/month pun better than nothing kan… Let’s be in this journey together..
Anyone wants to start s@ving/i.n.v.e.s.t.m.e.n.t. with me as your UTC, whatsapp: 0199272349 ✨Marian✨
Aaahhh begitu 😉
