I was browsing one time for some strategies in UITF especially on how to use the media as a tool on predicting the next fall or rise of the exchange index for stocks and uitfs.
But I stumble on one poster, describing the difference of a “Palay Planting” or rice farming versus UITFs.
The poster remarked that while spending 10,000 php of rice seedlings may yield twice for its price once sold; the fund and the money used to buy it stays the same.
However, when it comes to UITF, spending 10,000 and redeeming it later for profit, may actually be detrimental due to the fact that the shares/UITF spent with 10,000 Php is not its original shares anymore (like. getting 500 shares from 1,ooo Php but then later, you sold it. That same amount that you will invest after gaining the profit may not be able to buy 500 Shares but instead, 250 Only. )
That’s where the dilemma is when dealing with UITFs or Shares.
However, one strategy is to buy a share/unit and then sell it/redeem it later on a LONG TERM basis.
You could actively watch the UITF index on the said company and buy on the LOW period, eventually redeeming it on a HIGH period.
Some might say that the latter strategy may be hard with UITFs due to the forecast or report being late for a day or so. But here’s the thing; you are not looking for the result…. you are looking for a PROSPECTIVE or PROBABLE cause or reason it might FALL and then predict when IT WILL RISE UP!
That is how you manage such UITFs. Do this strategy and you will gain 80% probable profitability (a lot higher than most strategies I heard of). But hey, if you play the long ball… then go ahead and wait. But those who wait are not invulnerable with the world’s NATURE nor its people.
I also believe miscalculations should not be a deterrent on investing, due to the fact that investing is also a learning process.