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How to avoid wiping out your equity gains

With high levels of uncertainty both globally and in South Africa keeping market volatility high this year, it’s important for equity investors to recognise that they could be their own worst enemies if they decide to sell out of the market or switch to a different investment after a substantial downturn. By doing this they risk erasing valuable long-term gains they have built up, and not benefiting fully from their existing investment strategy. Over the long term, it has been shown that most investors are not reaping the full benefit of their equity returns. An eye-opening study covering the entire US mutual fund industry, Dalbar’s Quantitative Analysis of Investor Behaviour, has demonstrated how the average US equity investor experienced a return of only 3.79% p.a. over 30 years (

Change the Way You Invest by Understanding Asset Classes.

If you have an understanding of the different asset classes, it will help to change the way that you invest! Now that we have had an in-depth look at what the stock market is all about, we can move onto Unit Trusts as the next topic or investment vehicle (investment option). Before I do this we need to rewind one step quickly and talk about something that is called ASSET CLASSES. The reason, for this, is because without this foundation information, we will not understand how most investment options are structured. I encourage you to come to grips with the term ASSET CLASSES and ASSET ALLOCATION, as this will play a major role in setting up a successful investment portfolio for yourself. Before we can really go in depth for selecting the right funds for your portfolio, we need to underst

The Wealth Room

How to avoid wiping out your equity gains

Change the Way You Invest by Understanding Asset Classes.

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