Leave sentiment aside when deciding to sell unit trusts

There is no place for sentiment if you are into investments.

You have to review your unit trust investment portfolio and assess whether your unit trusts are outperforming the benchmarks set by the funds managers. If the unit NAV (Net Asset Value) or cost has been hovering at roughly the same dollar cost when you first purchased it some years back, then it is time to sell off and park your funds somewhere else. We do not have to hold on to hope that it will increase in value in the future.

I have a unit trust that had permanent diminution in value and even at half the value from the cost when I originally purchased it, it is better to cut loss and move on to other investments.

I also have unit trust that hardly moved in value when other funds were doing well, then it is time to sell them too.

Once you have sold these unit trusts, do not watch their pricing later on. What is sold cannot be undone and you should not feel regret.

Written on 4/3/2007 11:12 AM

Copyright © 2007, the author known as LKT in Singapore.

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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