Regular Investing – A move in the right direction
Having to contend with volatile stock markets and the continued fear of losing one's job has for many meant investing taking a back seat. In some respects that was pretty reasonable when equity markets had fallen by more than 50% in March 2009. However, like all bear markets throughout history, it had to come to an end and the remainder of 2009 saw equity markets stage a remarkable comeback.
Admittedly, the speed and longevity of the recovery was unexpected. But again, history has taught us that the first phase of the stock market recovery is usually both swift and substantial. Extremely low interest rates and huge fiscal stimulus measures by governments around the world injected much needed liquidity into the financial system. This liquidity has played an important part in the stock market recovery.
Unfortunately, the ending of this particular bear market saw many investors miss out on the benefits on this first phase, with investments redeemed and savings stuck in the bank earning zero interest. Many people believed they were happy to wait. And that's a natural reaction given the severity of this bear market, which sent us all running for cover.
However, the trick is to ignore market volatility and maintain some stock market exposure in a disciplined, relatively stress-free way. Which is where the MIP (Monthly Investment Plan) comes in. By feeding money into the market at monthly intervals the MIP allows one to build positions gradually. If markets stay soft, well, the more your money will buy at any given time; and if they go up, then your purchasing power goes down but the overall value of your portfolio increases.
The great thing about an MIP is the control it offers. You fix the amount you want to invest; you decide where you want to invest; and you can stop and re-start the plan at any time. It's not a magic solution but it can help you avoid a lot of the investment mistakes that we are all prone to.
At Aberdeen, we have been providing investors with long-only funds for over 25 years. We have seen bear markets come and go and if we have learnt one thing it is that it is never too late to start investing. Market timing is not something that we engage in and only invest for the long term. It has served us well over the past 25 years and we believe it is also a strategy investors can benefit from. Take a look at the following exciting funds and see how they might fit into your portfolio…
Having to contend with volatile stock markets and the continued fear of losing one's job has for many meant investing taking a back seat. In some respects that was pretty reasonable when equity markets had fallen by more than 50% in March 2009. However, like all bear markets throughout history, it had to come to an end and the remainder of 2009 saw equity markets stage a remarkable comeback.
Admittedly, the speed and longevity of the recovery was unexpected. But again, history has taught us that the first phase of the stock market recovery is usually both swift and substantial. Extremely low interest rates and huge fiscal stimulus measures by governments around the world injected much needed liquidity into the financial system. This liquidity has played an important part in the stock market recovery.
Unfortunately, the ending of this particular bear market saw many investors miss out on the benefits on this first phase, with investments redeemed and savings stuck in the bank earning zero interest. Many people believed they were happy to wait. And that's a natural reaction given the severity of this bear market, which sent us all running for cover.
However, the trick is to ignore market volatility and maintain some stock market exposure in a disciplined, relatively stress-free way. Which is where the MIP (Monthly Investment Plan) comes in. By feeding money into the market at monthly intervals the MIP allows one to build positions gradually. If markets stay soft, well, the more your money will buy at any given time; and if they go up, then your purchasing power goes down but the overall value of your portfolio increases.
The great thing about an MIP is the control it offers. You fix the amount you want to invest; you decide where you want to invest; and you can stop and re-start the plan at any time. It's not a magic solution but it can help you avoid a lot of the investment mistakes that we are all prone to.
At Aberdeen, we have been providing investors with long-only funds for over 25 years. We have seen bear markets come and go and if we have learnt one thing it is that it is never too late to start investing. Market timing is not something that we engage in and only invest for the long term. It has served us well over the past 25 years and we believe it is also a strategy investors can benefit from. Take a look at the following exciting funds and see how they might fit into your portfolio…
http://www.aberdeen-asset.com.hk | client.services.hk@aberdeen-asset.com
The above is strictly for information purposes only and should not be considered an offer, or solicitation, to deal in any of the mentioned funds. Investment involves risk, emerging markets may have greater risk than developed markets. Subscriptions may only be made on the basis of the relevant offering documents, most recent annual financial statement and semi-annual financial statements if published thereafter. The value of investments and the income received from them (if any) may be volatile and could change substantially within a short period of time. Past performance is not a guide to future performance. The investment returns are denominated in the base currency of the fund. US dollar / HK dollar based investors are therefore exposed to fluctuations in the US dollar / HK dollar / base currency exchange rate.
BEFORE MAKING AN INVESTMENT, YOU SHOULD REFER TO THE RELEVANT OFFERING DOCUMENTS AND IN PARTICULAR TO THE INVESTMENT POLICIES AND THE RISK FACTORS. YOU SHOULD ENSURE THAT YOU FULLY UNDERSTAND THE RISKS ASSOCIATED WITH THE FUND AND SHOULD ALSO CONSIDER YOUR OWN INVESTMENT OBJECTIVE AND RISK TOLERANCE LEVEL. YOU ARE REMINDED THAT YOU ARE RESPONSIBLE FOR YOUR INVESTMENT DECISION AND SHOULD NOT INVEST UNLESS THE INTERMEDIARY WHO OFFERS OR SELLS THE FUND TO YOU HAS ADVISED THAT THE FUND IS SUITABLE FOR YOU AND HAS EXPLAINED WHY, INCLUDING HOW BUYING THE FUND WOULD BE CONSISTENT WITH YOUR INVESTMENT OBJECTIVE. IF IN DOUBT, PLEASE SEEK INDEPENDENT FINANCIAL AND PROFESSIONAL ADVICE.
This website contains information on Aberdeen International Fund Managers Limited ("AIFML") and the Luxembourg-domiciled mutual fund schemes which it manages. The information and products contained within this website are restricted to investors within Hong Kong. There are important legal and regulatory restrictions which apply to this website. These are laid out in the Disclaimer section which you are advised to read before proceeding. By proceeding, you are representing that you have understood and accepted the restrictions set out in the Disclaimer section.
Third party websites provided by hyperlinks on this website are completely beyond the control of AIFML. Accordingly, AIFML accepts no responsibility for the accuracy, completeness and legality of the contents of such third party website, or for any offers, services and products contained therein.
© Aberdeen International Fund Managers Limited
The above is strictly for information purposes only and should not be considered an offer, or solicitation, to deal in any of the mentioned funds. Investment involves risk, emerging markets may have greater risk than developed markets. Subscriptions may only be made on the basis of the relevant offering documents, most recent annual financial statement and semi-annual financial statements if published thereafter. The value of investments and the income received from them (if any) may be volatile and could change substantially within a short period of time. Past performance is not a guide to future performance. The investment returns are denominated in the base currency of the fund. US dollar / HK dollar based investors are therefore exposed to fluctuations in the US dollar / HK dollar / base currency exchange rate.
BEFORE MAKING AN INVESTMENT, YOU SHOULD REFER TO THE RELEVANT OFFERING DOCUMENTS AND IN PARTICULAR TO THE INVESTMENT POLICIES AND THE RISK FACTORS. YOU SHOULD ENSURE THAT YOU FULLY UNDERSTAND THE RISKS ASSOCIATED WITH THE FUND AND SHOULD ALSO CONSIDER YOUR OWN INVESTMENT OBJECTIVE AND RISK TOLERANCE LEVEL. YOU ARE REMINDED THAT YOU ARE RESPONSIBLE FOR YOUR INVESTMENT DECISION AND SHOULD NOT INVEST UNLESS THE INTERMEDIARY WHO OFFERS OR SELLS THE FUND TO YOU HAS ADVISED THAT THE FUND IS SUITABLE FOR YOU AND HAS EXPLAINED WHY, INCLUDING HOW BUYING THE FUND WOULD BE CONSISTENT WITH YOUR INVESTMENT OBJECTIVE. IF IN DOUBT, PLEASE SEEK INDEPENDENT FINANCIAL AND PROFESSIONAL ADVICE.
This website contains information on Aberdeen International Fund Managers Limited ("AIFML") and the Luxembourg-domiciled mutual fund schemes which it manages. The information and products contained within this website are restricted to investors within Hong Kong. There are important legal and regulatory restrictions which apply to this website. These are laid out in the Disclaimer section which you are advised to read before proceeding. By proceeding, you are representing that you have understood and accepted the restrictions set out in the Disclaimer section.
Third party websites provided by hyperlinks on this website are completely beyond the control of AIFML. Accordingly, AIFML accepts no responsibility for the accuracy, completeness and legality of the contents of such third party website, or for any offers, services and products contained therein.
© Aberdeen International Fund Managers Limited