Sua is attached to the number one unit trust company which has won a multitude of awards, and her credentials include young clients who have managed to purchase their own homes at the age of 24 and older –retired – clients who enjoy multiple sources of income from savings and investment plans. Read her full profile here.
Q. What are the requirements of investors to be successful in unit trust investment?
Some investors made good return and achieved their investment objectives while some don’t. Many may wonder how this can happen. There are a few requirements of investors in order for them to be successful in unit trust investment:
(1) Stay long term & be patient
We always emphasize that unit trust investment is meant for long term. While many investors may understand this, they tend to lose confidence when they don’t see result within one to two years. Successful investors will not be swayed by short term results as they know that young fruit trees do not bear as many fruits as compared to the order ones.
(2) Be focus on the investment
Successful investors focus on their financial goals. They will review their investment yearly and are not easily being influenced by external environment such as what other people feel about the market. For example, we have a client who started investment in 1981 and consistently investing every month even during the economic crisis in 1988. Today, this client is enjoying yearly income of RM21,000 to RM47,000 from the investment of only RM60,000 over the years.
(3) Understand what you invest
Investors must understand what they are investing in. For example, the characteristics of the funds and risk involved. They must understand the consultants’ explanations. Successful investors are not easily influenced by consultants who promise to deliver short term profits by timing the market as they understand that it is very difficult to time the market.