heisenberg
Registered User
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- 20
Around this time last year I decided to dip my toe into the investing world and decided to purchase some shares of a mutual fund. I thought it would limit the risk and seeing as it is professionally managed that they would have greater knowledge on what markets to invest in than I ever would.
The fund is diverse enough with 50% in equity, 40% in bonds and 10% in cash. Unfortunately it has not panned out the way I had hoped. The investment has dropped over 10% in value in less than a year.
I had intended for this to be a medium term investment, maybe a 5 year term depending on how the returns faired. But now I have fears that I may never even get my original investment back. Whilst I have not invested a huge amount of money, it is still significant to me. If I lost it all, it wouldn't be the end of the world.
Do you have any advice for a novice investor such as myself? I originally set a lower limit of 15% loss in value before I cash out, but as I have a limited knowledge of mutual funds, I'm not sure if this is a wise decision, especially as I had envisaged a 5 year term.
I understand that no one can predict the future behavior of a fund, but can anyone provide advice on the best approach considering the current stock market conditions?
The fund is diverse enough with 50% in equity, 40% in bonds and 10% in cash. Unfortunately it has not panned out the way I had hoped. The investment has dropped over 10% in value in less than a year.
I had intended for this to be a medium term investment, maybe a 5 year term depending on how the returns faired. But now I have fears that I may never even get my original investment back. Whilst I have not invested a huge amount of money, it is still significant to me. If I lost it all, it wouldn't be the end of the world.
Do you have any advice for a novice investor such as myself? I originally set a lower limit of 15% loss in value before I cash out, but as I have a limited knowledge of mutual funds, I'm not sure if this is a wise decision, especially as I had envisaged a 5 year term.
I understand that no one can predict the future behavior of a fund, but can anyone provide advice on the best approach considering the current stock market conditions?