Why some mutual funds Investors loss money!

Some mutual fund Investor only enjoy 2% or 3% returns and a lot more loose money?

This is the reason, whenever there is market volatility or a bad news or an event like a tsunami, or crisis like Ebola, SARS, and even crude oil crisis - there will be a record withdrawal. For this category of investor's they will never enjoy the 10% to 12% returns pa. However they will be staring at a mere 2% pa or even losses. Next is the expected from these group of investors, they will swear this "... mutual funds does not work"

It is simply math here, someone selling any type of investment simply because there is a drop in asset price is giving their money to wiser and more clam/experience investors. These category of people will fuel the fire of profits/returns by giving away their money to those who remain calm and keep their long-term goals of investment.

Question here is with the down grading of USA credit ratings:-

1. Will KFC sell less fried chicken or McDonalds less Big Macs. Well they are still so pack with people last I visited them.
2. Will there be less people at the local neighborhood clinic? ... If you are sick you need a doctor, and you can't choose not to visit a doctor because of the market volatility!!!
3. Will Nestle sell less coffee? Maybe they will be sell more! Huh many more cups of coffee will be downed, cause there will be a certain category of people who are so worried "sick" that they need more coffee now to clam their nerves.
4. What about the local utilities company ; water and electrify? Stop using water and Europeans stops to use heating for their homes in winter?

To be fair and with due respect to those who failed to see these, all types of product or services that is manufactured or rendered by these companies are owned by businessman or investors like shareholders etc. These companies will still see net profits and will payout dividends, so just find good mutual funds managers (also work with the correct advisor) to help give you reasonable returns. Also work with consultants that will help you reinvest your dividend or give you the correct advise. Simple but it is true.

Hey people making money is simple; "buy low and sell high" or "buy high and sell higher". If this is so, why then are there so many people who still screw it up? Your guess is spot on, they panic and out of fear of the unknown they do all the wrong thing. However if you work with advisors that can help clarify and clear the air of "fear of the unknown" you will be in the other group whom does not suffer losses.

I urge all to take advantage of this small window of opportunity now, buy into mutual funds (unit trust) equity asset class now. Choose the correct funds and you should be benefitting from those who have sold their investments. If they choose to sell at a lost them tey are giving you money - putting money into your pockets.

Call me now and while others are fearful, we must be greedy as the whole market is currently on sales. Then when these people are greedy, we sell to take even more of them. This is a tearful scene, but it is simple math - you drop one dollar and someone else will pick up that one dollar.

So contact me Now at tjlim1954@pd.jaring.my

Cheers and till then!
TjLim

Associate Financial Planner Malaysia
Associate Estate Planning Practitioner (M'sia)
Diploma in Management Studies