As promise i will share abit on how to invest in Unit trust or mutual funds and be profitable even if the market is not doing well.
The concern of alot of people for lump sum investment is timing
1)timing: if you invest in the correct time, you will be able to buy low and sell high.
Next how do you know when is the low and when is the high???
The fact is it is hard to predict, even with technical and fundamental analysis, it cant pin point to the lowest low and the highest high. So the way to invest in lump sum investment in unit trust is to buy in with a certain percentage when the market come down and sell on the way up. However constant buying and selling will incur a hugh cost in fees if you are trading on stock or ETF.Thus unit trust is the only way to do it as there is free transaction fees.
How do you know how much percentage when the market go up or down is when you sell or buy?
That is the magic of this investing strategy, you can DIY too. Screen through some major funds and the major Indexes to find the max and min volatility. Then measure all the dips, corrections, up trend in term of percentage. Get an average out. Then test it on all the funds that you selected and major indexes.
From here you would have a better understanding of this strategy, of course if a chef review his recipe too much, soon his restaurant would be empty. This are some of the things that i can review to let you folk understand the concept of this investing concept.
