Strategy to invest in Unit Trust

There are few methods to invest, but what I advise is to apply the Tactical Fund Management, you can reduce the risk of losses and protect your gain.

1. lump-sum investment (not so recommended)
2. Ringgit Cost Averaging (strongly recommended)
3. Asset Allocation

Lump-sum investment refers to invest one shot fund at the price,wait the fund price rises or distribution of dividend. You will very happy while the price appreciate or distribution of dividend. The bad situation is while the price drop below the price you purchase, you only have 2 option: 1st is wait the price go up, 2nd choice top up while the price is lower,because it will average your price. Remember don't panic and sell your fund if you are not urgent for the money. You MUST always remember whenever market crash ,it will come back.

Riggit Cost Averaging(RCA) is suitable for fresh starter.Start with initial RM1,000, after that every month top up RM100, at the end of that, you will purchase at different price with fixed amount of RM100. That means you also will average your price of purchase, when the market boom, you will gain it. When market drop, you also use RM100 to buy, but  you may grab more units while. Be in your mind, market sure come to us, you just have to save enough bullet to grab the profit. Unit Trust is long term investment tools.

Asset allocation is to diversify your investment into low risk,moderate,aggresive fund.
Eg. you have RM100k, based on your own risk characteristic, you can put 50% into bond fund, 50% to the equity fund. Because bond fund can provide you low risk(low return) ,and the equity provide you high risk(high return),whenever your equity fund drop, the bond fund still can cover your losses with the gain.