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When It's Time to Sell, Sell
Posted by gnustiy @ Wed 10 Oct, 07, 10:07PM under Public Mutual
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  After the recent "Big Dip" in mid August, the regional market has rebounced strongly since then. I am glad to assist some of my friends in achieving a strategic pricing in their unit trust investment by taking advantage of the plunge. As such, within less than 2 months, most (all) of them have gained more than 10% in capital growth. Congratulations! So after you have establish an investment portfolio, now what?
So now, the focus would be on strategic monitoring and managing of the funds to maximise your gains. First, you will need to recalculate the actual NAV of your investment by dividing the Total Amount Paid by the Total Units from the statement of transaction. For example, you invested RM2500.00 in PIADF at NAV = 0.2360. Note that there is a 6.5% service charge incurred. As such, only 93.5% of the RM2500.00 (which is RM2347.42) will be used to purchase the units. In this case, the total unit obtained will be 9946.69 units. To recalculate the actual NAV of your purchase, simply divide RM2500 with 9946.69 and you will get 0.2513. Once you have derived the actual NAV, you will need to set a targeted ROI and if the current NAV hits the target, do not hesitate to exercise profit-taking unless the outlook of the investment climate is positive and promising. The emphasis here is to grab the profit once the target is achieved. It is like exercising the muscle, the more you exercise it, the stronger it will get. Do not be over-zealous and overwhelm by greed, remember that the market is volatile and the uptrend will not sustain forever.
For monitoring and managing purpose, you can prepare a spreadsheet as shown above to record all the necessary information:
Then periodic monitoring is required (daily, weekly, monthly). For me, I have generated a macro to update the NAV daily. If the current NAV hit the targeted NAV to sell, then reap the return. Or, you could retain your asset value by switching to a bond fund and wait for the next dip/cash squeeze. *wink Good luck! Adios. leave me a message
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@ Fri 01-02-08 07:56AM
