A tip I followed: Aberdeen New Dawn

d712

At the start of the new tax year I read an article in the Telegraph where 'expert' analysts recommended a fund to invest in.


If the analyst had made a recommendation the previous year then it's performance was mentioned as well.


The analyst with the best recommendation the year before (it had gone up by 47%) suggested Aberdeen New Dawn. I went with that as part of my portfolio.


Since then it has gone down by 12%. Every time I check it has seemed to have gone down further.


The fund's objective is 'to provide Shareholders with a high level of capital growth through equity investment in the Asia Pacific countries excluding Japan'.


I'm not blaming anyone other than myself. I went with it and it hasn't done well at all so far. I'll hold onto it because I'm sure it will go up again given time.


However, just out of interest, what could have caused it to fall by so much in a short time period.


Are there any significant events that have caused this?


Thanks

Glen_Clark

d712 wrote: »

Are there any significant events that have caused this?


Thanks

All the Emerging Market funds seem to be down.
As I understand it, in this perverted economic world created by QE (money printing) good economic news from America, which would have caused share prices to rise, now suggests they will start unwinding QE and raise interest rates- and that causes share prices to fall - Especially in Emerging Markets because the thought is that money will flow out of the Emerging Markets back to better investment opportunities in America.

bigadaj

It's a specialist fund in a fairly volatile area, so it is going to vary over time.

If you and invested a year earlier then you'd have gone up by nearly 50% and dropped by say 12% so would still be up by a third or more.

Fashion investing is often troublesome, and following tips from newspapers isn't exactly inside news, and is often connected to advertising revenues so the objectivity of such information should always be questioned.

What you probably want to review is your overall asset allocation and see if this fund fits into that. I guess it's an active fund so will have relatively high charges, though Aberdeen have a good track record and reputation in Asia and emerging markets so not worth immediately dismissing it without some thought and review.

kidmugsy

If you keep checking your equity prices then you are not cut out for equity investing. Either stop fidgeting and fretting, or sell up and put your money into Premium Bonds.

d712

kidmugsy wrote: »

If you keep checking your equity prices then you are not cut out for equity investing. Either stop fidgeting and fretting, or sell up and put your money into Premium Bonds.

????????? Have you had a bad day or you always so needlessly abrupt?


If you keep writing responses like that then I'd say you are not cut out for posting messages on internet forums.


I'm not fretting or fidgeting, I said I was going to hold onto the investment.


If you actually read my post properly you will know I was asking for the factors that may have caused this fund to drop significantly in a short space of time.


Fortunately that question has been answered by other members of this forum, politely too I might add.

d712

Glen_Clark wrote: »

All the Emerging Market funds seem to be down.
As I understand it, in this perverted economic world created by QE (money printing) good economic news from America, which would have caused share prices to rise, now suggests they will start unwinding QE and raise interest rates- and that causes share prices to fall - Especially in Emerging Markets because the thought is that money will flow out of the Emerging Markets back to better investment opportunities in America.

Thanks for your response, polite and to the point.


kidmugsy, please take note.

d712

bigadaj wrote: »

It's a specialist fund in a fairly volatile area, so it is going to vary over time.

If you and invested a year earlier then you'd have gone up by nearly 50% and dropped by say 12% so would still be up by a third or more.

Fashion investing is often troublesome, and following tips from newspapers isn't exactly inside news, and is often connected to advertising revenues so the objectivity of such information should always be questioned.

What you probably want to review is your overall asset allocation and see if this fund fits into that. I guess it's an active fund so will have relatively high charges, though Aberdeen have a good track record and reputation in Asia and emerging markets so not worth immediately dismissing it without some thought and review.

Thanks bigadaj. Another polite response.


Two out of three isn't bad I suppose.

bowlhead99

d712 wrote: »

kidmugsy wrote: »

If you keep checking your equity prices then you are not cut out for equity investing. Either stop fidgeting and fretting, or sell up and put your money into Premium Bonds.

????????? Have you had a bad day or you always so needlessly abrupt?

If you keep writing responses like that then I'd say you are not cut out for posting messages on internet forums.

d712 wrote: »

Thanks for your response, polite and to the point.
kidmugsy, please take note.

d712 wrote: »

Thanks bigadaj. Another polite response.
Two out of three isn't bad I suppose.

If you can't handle salient observations about the futility of checking equity prices every two months, and you judge the quality of each response on a 'politeness' scale, then:

I'd say you are not cut out for posting messages on internet forums.

masonic

Don't follow tips. If you DYOR, you'll be armed with the information needed to evaluate the performance of the funds you pick.

jimjames

At the risk of getting the same response you need to remember it's a long term investment and frequently checking prices will not help.

What other investment do you have?

I own Aberdeen new dawn and have done for over 15 years. In that time the price has gone up over 5x. That's why you look long term not a few months.

kidmugsy

d712 wrote: »

????????? Have you had a bad day or you always so needlessly abrupt?
.

What a cry-baby.