Investing can be intimidating, scary, making people sleepless. Therefore, there are plenty of the Investment Products that target the group of investors who are extremely fearful of risk or prefer their ‘perceived easy way’.
Invest or lose wealth
To be frank, there is no one single easy way that one can grow the wealth more than inflation rate without taking risk. That means investing is inevitable or one has to bear with value of wealth shrinking over time (due to inflation).
Growing wealth is never easy
Unfortunately, there is no genuine Investment Scheme that can offer High Return with Low Risk, except scam. The process and skill to pick the right Investment Product that can help one grow his wealth can be as hard as stock picking. Some people are fearful of investing in stocks or stock picking, so they buy Unit Trust. If one thinks that by investing in Unit Trust, is an easy way out and hoping the fund managers to grow the wealth, my experience tells me that the selection process is undoubtedly equally challenging as stock picking.
Selecting Fund Manager is like selecting CEO
I have ever seen a Unit Trust that could not even break even after 20 years of holding. Holding such hopeless Unit Trust, in my opinion it is like holding a junked stock. The Fund Managers of such product are as good as incapable CEOs who earn high pay but deliver mediocre if not horrible performance.
Ignorance produces mediocre result
I came across many people invested in Unit Trust, but very very few (probably less than 5%)would know/remember exactly what they had invested. Then this is like holding a stock without monitoring the development of the business invested. The result is usually miserable.
Start from basic
I strongly believe that, to invest successfully, one has to learn the basics of investing. If the person has no idea about stock, likely he will have no idea what an Unit Trust is about. He likely will be overwhelmed by all the Sales Pitch rather than a real working Investment Product.
If you think you need an Investment Professional to work hand in hand with you to take care of your Stock Investment Portfolio, please feel me to drop me an email [email protected] or call me at +65-91880356 for an non-obligatory discussion now.
