Category: Money Tips Date: 2007-05-03
Over the past few years, the investment market is volatile, a great, 97 years of financial crisis has led Asian stock markets plunged in 99 years the technology bubble formation, led global stock markets soaring irrational, in 2000 the technology bubble burst, sharp correction in global stock markets and therefore , 911 incidents occurred in 2001, so that the weak stock market go down it sank, and into 2003, the global stock market eventually bottomed out signs of significant parts of the stock market was built.
In the extremely volatile market conditions, even experienced investment professionals, but also difficult to accurately predict the stock market every minute and every change in every moment. Retail investors, but also tend to recover goods in the high, touch the top market, was put when the stock fell to a low residual goods, stop-loss leave.
I believe the fund savings scheme may obviate the investors "put the level of" troubles. Fund Savings Plan The essence of successful use of the concept of the average cost method, so that investors do not have time-consuming to capture the city and out of time.
Discipline to invest some market or industry funds, should they persevere and a great opportunity for capital appreciation. Now, let us share some examples here to see the average cost method on the effectiveness of emerging markets in Asia.
Savings Fund, an instance of
Recently, the performance of emerging markets in Asia highlighted once again become the focus of the investment market, a number of competing flows of funds. In fact, in 90 years, emerging markets in Asia are also used to be a popular item, the right emerging markets in Asia have unlimited vision of the year and even Hong Kong, Hopewell Holdings is also investing heavily in plants in Indonesia and Thailand overhead rail. Since then, the Asian financial crisis to the flooded, Southeast Asia stock exchange were the impact of large amounts of funds from Asia, Southeast Asia and the rest of the stock market slump, local currencies have rushed to the devaluation, investors being affected by a double blow.
Although the recent Thailand, Indonesia, the fund performance has been outstanding so far this year (as of September 19, 2003), many of Thailand, Indonesia, the fund increases were more than 50%, the highest return of as much as 108%. However, if you invested in early 1997 in Thailand and Indonesia, fund, and long-term hold to the present, in the end the number of returns?
Suppose you bought in January in 97 years, Credit Agricole Thailand Equity Fund and holds a date, even though the fund has doubled during the year, but your loss is still close to 14%, while if you bought in January in 97 years, Allianz Long Tiger selected mutual funds in Indonesia and hold still, you have a loss of up to 78%.
On the contrary, if you invest in the Fund savings scheme, from January 1997 to now, 1,000 yuan monthly contribution, you not only successfully weathered the Asian financial crisis, now more can be recorded in a handsome profit. The average cost method investment in selected mutual funds in Indonesia Dresdner RCM New Tiger can bring you about 52% of their profits, while Credit Agricole Thailand Fund has recorded more than 146% increase.
The above example, give full play to the average cost-effectiveness of the law, investors successful transition of the financial turmoil, the technology bubble and so on down the devastating waves. The author believes that unless the basic elements of a region there have been dramatic changes in, or as long as the persistent, long-term average cost method is indeed very much adds.
