Actually, it is not, it is a survey and statistic run that proven if you have this kind of patient (wait for at least 5 years ??), and the fund selected is not really that BAD (well, be realistic, we have people score all As' and some score nothing, so does Mutual Fund)....
I had checked out several funds, seems like this is the acceptable timeframe one needs to wait for their fruit grows if they are prepare not to do much 'watering' and 'gardening'
For sure, this don't apply to those who is in 'Unit Trust TRADING" .... they managed their investment differently.
I am taking one fund to show the example.
Say, an investment of RM10K, comparing with FD & EPF return.
Green line = investment return
Yellow = EPF return
Blue = FD return
This chart shows an investment for 17 years. (2009 -1992 = 17 years)
Suprisingly, even in the last round of global crisis where the return is badly affected, but still the return is better then EPF & FD. Kind of 'down turn proof' already.
Same fund, but invested 5 years ago.
The return is impacted and return is lower than EPF and FD at early year of 2, and, it is bad during the down turn.
However, it picks up again when the economy recover.
If a fellow panic and sell off during the down turn, this must be the fellow that you met once upon a time and tell you UT sucks where he loses huge in the game.
Hence, a person who don't have enough patient, might not able to play the UT game well and win in the game.
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