My Unit Trust Investment as of 13th March 2020
So I’m going to start a weekly post about my personal investment in Unit Trust. Is this the only investment that I have? No. I’ve tried a few but this particular one I started since 2011 and is the easiest one.
My journey started somewhere in 2010 when I started reading about growing my wealth. I read 2 books, one is from the famous Robert Kiyosaki and the other one is from Azizi Ali. I also followed KC Lau blog before that until a friend introduced me to Azizi Ali. Still, a book is a book if don’t take action on what you have read.
Then came a friend that I met from my cycling group. We had a small chat about stock investing. But the moment he asked about investing in Unit Trust, straight away I say yes. Because after reading those books, anything that involves investing is good right? Well, it is to me at least.
The thing is, I thought that investing in Unit Trust is the same as putting money in ASB where you only wait for the dividend payout. By the way, did you know that ASB is also a Unit Trust investment? We normal folks think it’s a bank but it’s not. Again, here I am, blindly investing and waiting for the dividend payout.
Fast forward
7 years down the road, I look back at what I have invested, I found out that investing in Unit Trust is not about waiting for the dividend payout. You actually need to actively track your investment. When I say actively, I’m not saying that you need to look at it every day. What I’m saying is, you need to look at it every 3 to 6 month.
So that is exactly what I did. I track my investment and start to balance out my portfolio, between equity & bond. The result? I’m getting a positive return. Why didn’t I do this earlier?
How did I do?
| Date | Total Gain or Loss | Equity Holding | Bond Holding |
|---|---|---|---|
| 13 March 2020 | 2.35% | 39% | 61% |
| 6 March 2020 | 6.57% | 41% | 59% |
Well, with the current market condition, safe to say that my current investment value is down to 2.35% as compared to last week which was at 6.57%. That’s not much, I know. Bear in mind, I only started rebalancing my portfolio last year. Will it drop by next post? Looking at the market, yes it will. But do I suffer a lot? It looks like it but I don’t feel like it. The thing is, 61% of my portfolio is in bond. So I’m waiting for my next portfolio review to balance out my portfolio. You can bet that I’ll be transferring my bond holding into equity.
I did a simulation on how would my investment perform if I started to rebalance my investment portfolio from the start. The result? My investment would gain about 12%.
How is your investment doing?
