Mutual Fund – time to stop the auto-debit
Ever since March 8th election, our Malaysia’s stock market has been spiraling downwards. Similarly, our funds are going down as well especially equity funds since equity funds are based on the stock market. Bond funds are not as bad (yet).
About 2 months ago, I wanted to move my high-risk equity fund to bond fund but my uncle told me not to do so since China is still quite stable. Now, the bond fund which I was looking at has gone up and my equity fund has gone wayyyy down. Too late to sell or to convert to bond fund.
Then I decided to call up my agent and told her to help me stop the auto-debit. My plan is to stop the auto-debit, take the money and save it up, and then buy in again (with lump sum) once it drops further. I expect most equity funds to drop further in the months to come.
Just sharing with you my decision. I could be wrong and this might be a beginner’s mistake. I don’t know. But I feel it’s worth a try. 
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Comments
@ LawOfArabia
If you notice, the post was all the way back in Oct 2008 when the mutual fund was not that bad YET. I was planning to wait for it to drop further, and get the money saved and get all the units in one go.
But my agent didn’t stop it for me.
Currently, I still invest on a regular basis because the price is really low now. No point to stop now anymore. 
I think you are making a big mistake. Dollar Cost Averaging works wonder during volatile period like now. What you should do is transfer your profit to bond fund and continue to invest monthly, in this way you don’t need to time the market. Because you never know when is the lowest. If one can time the market, everyone is millionaire.