The trouble with switching in and out of funds

The trouble with switching in and out of funds

During periods of underperformance, even the most experienced investors get tempted to switch funds in search of better returns. However, switching funds in response to short-term market conditions can jinx your investment success over the long term. After a flat few years, 2018 was particularly difficult for local investors, with the FTSE/JSE All Share Index […]

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The biggest risk to Investors

The biggest risk to Investors

The biggest risk to investors : their own capitulation especially as harsh market reality leads to investor fatigue The last five years on the JSE have been incredibly hard. Investors in the local market have received returns only barely above inflation. As the graph below shows, this is one of the worst five-year periods on […]

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Signs of Spring?

Signs of Spring?

2018 saw South African investors endure their fifth year of equity returns of close to zero, driven largely by an exodus of investors out of emerging markets. The last month of 2018 saw this nervousness spread to developed markets on the back of fears around the China-US trade war, mounting concern around the US Government […]

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South African investors feeling jaded

South African investors feeling jaded

Feeling slightly jaded or disillusioned by your investment portfolio? You’re not alone. For the best part of five years, investors could be excused for thinking that they’ve been trapped in a Groundhog Day of horrible market conditions. While global markets have rallied, especially in the US, South African investors have sadly missed out. After prolonged […]

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Why cash can be the riskiest asset of all

Every investor would have heard of equity and listed property referred to as ‘risk assets’. They would also have seen a graph which shows the relative risk of different asset classes, with cash at the bottom as the ‘lowest risk’ and equity at the top as ‘highest risk’. Intuitively, this also makes sense. Cash in […]

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Why you should stay calm when markets get volatile

The last six months have been a rollercoaster ride for global and local equity markets After a good November, the local market was shaken by Steinhoff’s accounting scandal early December 2017. This was followed by numerous reports by Viceroy Research causing several shares to significantly drop in value. Luckily this was followed by positive news […]

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Investing in tough times

In times of stress, the human impulse is to take action. When the economy and investment returns start to sink, this instinct could drive investors to do something – anything – just for the sake of taking action. This is precisely the wrong reaction in challenging times. There are many knee-jerk short-term responses, all of […]

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Unit trusts are a great investment

I have been working for Personal Finance, first as a sub-editor and now as a writer, since October 2008, or just over eight years. In that time, an important thing (and there have been many, many others) I have learnt has been the value of unit trusts as an investment vehicle. Unit trust funds fall […]

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