Norlinah Mohamed Ibrahim asked 10 years ago
I invested in Islamic Unit Trust – mainly equity funds in 2013. Unfortunately the market took a downturn after that, and for the last three years, I am making a loss, and losing from dividends had I invested in safer funds such as the ASB. I am getting very agitated looking at the fund performance and to see my investment depreciating slowly. Even if the market recovers over the next 5 years, my investment may just reach its baseline value and I may need to wait longer to reach my target which was only 15% ROI/year . What is your advice?
KCLau Staff answered 10 years ago
Hi Norlinah,
To achieve great return of more than 10% a year, you will have a better chance by learning up investment skill to invest directly in the stock market and properties. Then you can hand pick the good investment opportunity.
I agree with you that when your unit trust is under water, you still need to pay the management fees even the fund is not performing, making is a subpar investment. That’s not just loss, but also opportunity cost.
ASB is sort of guarantee return and you can also use ASB loan to leverage, giving you way better return than unit trusts can offer.