Analysts advise investors to stick to their strategy and not change funds during periods of poor performance because this usually destroys valueWhen returns are low, the temptation to switch between unit trust funds is much stronger. But these switches often lead to poorer, rather than improved, performance, data from one of the larger unit trust fund platforms shows.
But easy switching seems to have destroyed value for many investors. Momentum found that one in two of 17,600 investors who used its platform in the decade to 2018 switched funds during periods of poor performance but would have earned 1.1% a year more — or 11% over 10 years — if they had stuck with the funds they initially picked.
Marais says this proves that investors are often not rewarded for attempting to pick what they believe will be well-performing funds. Marais says Momentum is already doing this for retirement funds where its CPI + 6% portfolio has had an 84% success rate in achieving CPI + 6% over rolling seven-year periods since 2008.
Berita ini telah kami rangkum agar Anda dapat membacanya dengan cepat. Jika Anda tertarik dengan beritanya, Anda dapat membaca teks lengkapnya di sini. Baca lebih lajut:
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
OPINIONISTA: An election should not cause SA to pause on investment decisionsSouth Africa appears to be in the eye of the storm. For the next month, all bets are off as we wait for the election results to provide guidance on investment decisions and much else besides. However, the example of Mauritius shows that we need to strive to make election results almost irrelevant in the execution of policy and fiscal management.
Sumber: dailymaverick - 🏆 3. / 84 Baca lebih lajut »
BUSINESS MAVERICK: The Green, Green Grass of Home is becoming a sustainable investment propositionGreen bank Nedbank became a bit greener when it joined the green bond segment of the JSE on April 30, 2019. It follows the bank’s announcement earlier in the year that it will no longer fund the construction of any new coal-fired power plants beyond its existing commitments. Nedbank on Tuesday placed a R1.7bn bond to fund renewable energy projects. It was three times oversubscribed and received bids totalling R5.5bn, demonstrating strong investor appetite for good-quality environmental, social and governance focused assets.
Sumber: dailymaverick - 🏆 3. / 84 Baca lebih lajut »
Business Maverick: Tesla Manager Sees Risk of Battery-Minerals Shortage in FutureBooming demand for electric vehicles and insufficient investment in mines could result in a global shortage of minerals needed to manufacture rechargeable batteries in a few years’ time, a Tesla Inc. representative told U.S. officials and mining executives in a meeting in Washington.
Sumber: dailymaverick - 🏆 3. / 84 Baca lebih lajut »