There are few golden rules in avoiding losing money in unit trust investment:
1) Don't invest borrowed money
When you borrow money to invest in unit trust, you lose the control of how long you can stay in the investment! For instance if you borrowed money from bank, hike in interest rate might force you to sell off your investment prematurely if you can't afford the monthly loan repayment.
2) Only use money that you can put aside for 3 - 5 years
Besides allocating money for investment, make sure you reserve some for emergency use! So that during emergency, you will not be forced to redeem your investment when the market is down.
3) Don't let short term fluctuations discourage you
When market is fluctuated, practive switching or dollar cost averaging! Remember your investment objective!
4)
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment