china india fund...what to do??

ana_conlon

first of all can I start of by saying I know nothing about stocks and shares ...my mother and sister recently invested 20K into the china India fund and have lost over 6k of it in a couple of months ........its particularly

misfortunate that this fund has been doing so well for year and as soon as my family invest it goes t*its up ...........

Basically I’m asking for advice should we pull the rest of the cash and live with the lost or risk staying in and hope for an improvement in the market?? I do realize no one knows for sure but I’m hoping that someone would have a more educated guess and advice would be greatly appreciated because although it not a massive sum of money its allot to us:(


ana

portomar

it is a large amount of money to most people, me included. unfurtunately, im completely uninformed on prospects for the india and china areas. perhaps you could post the stocks it holds?

gordon_gekko

ana_conlon wrote: »

first of all can I start of by saying I know nothing about stocks and shares ...my mother and sister recently invested 20K into the china India fund and have lost over 6k of it in a couple of months ........its particularly

misfortunate that this fund has been doing so well for year and as soon as my family invest it goes t*its up ...........

Basically I’m asking for advice should we pull the rest of the cash and live with the lost or risk staying in and hope for an improvement in the market?? I do realize no one knows for sure but I’m hoping that someone would have a more educated guess and advice would be greatly appreciated because although it not a massive sum of money its allot to us:(


ana

that fund was performing extremley well and it still should be , the problem with that fund and every other fund right now apart from commodities and even its fallen a little is no country no matter how well there economies are doing ( and india and china are booming ) have any independance from what happens in the usa
nothing in india or china is causing that fund to tank lately , its all down to the usa
if the usa economy is in the tank , the rest of the worlds markets suffer , its that simple , that will probably change in the future as the usa has a less disproportionate influence on the global economy but for now its a case of , if the usa farts , the rest of the world smells it


if i had a lump sum to invest right now , id stick it in the 5.1% savings account in irish nationwide
no fund has done aswell as that in the past 6 mths

shawnee

I also invested , not quite that amount in the India fund, made great progress for a while, but then like practically every share and fund at the moment it collapsed. I now plan to sit it out and hope that it will recover, at the moment I do not need the money. It does not please me to see that my investment has lost but hey that's a risk that I took and if it was up 30 per cent I would be delighted, so I now plan to sit it out until it rises again. It could however take a couple of years to come back, but I am confident that it will return to its wiinning ways.

tom-thebox

bottom guessing, is a common occurrence, its still a risky business and a gamble, if it wasnt everyone would be millionaires

DJDC

so I now plan to sit it out until it rises again. It could however take a couple of years to come back, but I am confident that it will return to its wiinning ways.

That couple of years to a real investor is a serious problem. The capital could be earning risk free interest in a bond or savings account, not to mention the oppurtunity cost of investing you are losing.You are essentially losing about 5% returns a year which is the risk free rate until the fund value increases above the level at which you entered so I 'sitting it out' isnt an easy decision.

Basically I’m asking for advice should we pull the rest of the cash and live with the lost or risk staying in and hope for an improvement in the market?? I do realize no one knows for sure but I’m hoping that someone would have a more educated guess and advice would be greatly appreciated because although it not a massive sum of money its allot to us

Equity markets in the BRIC zone have taken a significant hit in the last few months and the outlook for the region is uncertain to say the least. The decoupling theory has been proven wrong and the return of the bull market cannot yet be predicted.Im guessing you invested in this fund purely based on its past preformance?

ana_conlon

DJDC wrote: »

Im guessing you invested in this fund purely based on its past preformance?

Thanks everyone for your replies ........yea we invested because it looked so promising as soon as we put our money it it started to take a nose dive

dunkamania

DJDC wrote: »

Equity markets in the BRIC zone have taken a significant hit in the last few months and the outlook for the region is uncertain to say the least. The decoupling theory has been proven wrong and the return of the bull market cannot yet be predicted.Im guessing you invested in this fund purely based on its past preformance?

Equity markets have performed similarly worldwide, its more a result of investors pulling money from markets than anything else.

A common misconception about decoupling is that it applies to equity markets, when in fact it applies to economic performance.
Decoupling has held so far and I think it will continue to do so more or less.

I would remain bullish on emerging markets, especially relative to US and Europe

DJDC

Equity markets have performed similarly worldwide, it’s more a result of investors pulling money from markets than anything else.

Where did I write or even imply that they weren't. The birds on the street know that global equity markets have tanked mate. Hardly a gem of wisdom.

A common misconception about decoupling is that it applies to equity markets, when in fact it applies to economic performance.
Decoupling has held so far and I think it will continue to do so more or less.

Now you a not speaking any sense whatsoever. Decoupling is a phrase not a technical economic term. To quote Satyajit Das in this recent blog

"The investment theme du jour is “decoupling” - equity markets have decoupled from debt markets, emerging markets have decoupled from developed markets and the US dollar has decoupled from just about everything."

Wider Article: http://www.wilmott.com/blogs/satyajitdas/index.cfm/2008/2/25/Investing-Orthodoxy--Decoupling-Decoupled

And even if decoupling was based purely on economic growth, analysts predict China and India are to have slowest rate of growth in 2008 since 2002/2003. To suggest the BRIC zone is completely decoupled from the US crisis is absurd. Find me one good source saying they have been proven completely decoupled.

I would remain bullish on emerging markets, especially relative to US and Europe

Definitely. Imagine a third of the world’s population becoming middle class in the next 30-50 years. Imagine the investment opportunities, consumption demand and human capital available.EM is the place to be for the foreseeable future.

portomar

DJDC wrote: »

EM is the place to be for the foreseeable future.

EM?

Blackjack

portomar wrote: »

EM?

Emerging Markets