Fund behaviour

Keeping

Can someone please explain why a particular fund will

Week 1
+0.30%
+0.40%
+0.20%
+0.70%
-4.89%

Week 2
+0.45%
+0.80%
+0.70%
+1.50%
-3.50%

and then 6 months later I've made a grand total of 1.7%

There must be an actual predicable reason as to why it gains ~+3% a week and then in 1 day loses ~3%. It just seems that whatever progress the fund makes all the progress is lost in like a single day.

The fund always just makes small gains over a long period and then a massive drop in a single day. I swear there is some dude with a button in the stock market and he just presses it to reset the progress.

jimjames

Which fund is it? Have you looked at the movement of the relevant index too?

ChesterDog

Yes, if you tell us what the fund is then it will be easier to comment properly.

Equity-based investments do tend to fall more quickly than they climb, although - over time - the distance climbed tends to greatly exceed the distance fallen.

Kendall80

Looks like the performance of my europe fund this past week. Thanks Draghi.

Sam_J12

The day to day movements of a fund matter little and there is a lot of randomness in it. Long term gains are likely to be more predictable. A gain of 1.7% in stocks over the last 6 months isn't that bad actually looking at the performance of markets across the world.

But even 6 month performance isn't that important, when people buy stocks should really be investing for many years. Relax, and try not to check performance every day.

ColdIron

Hard to tell without knowing what fund it is. On the other hand, following daily or weekly movements will drive you mad and ~3.4% pa could be worse

talexuser

Those sort of movements are basically just noise, the ~3% maybe a bit of bad news that panics a few more investors. If that worries you what are you going to think when the next crisis hits and your funds might go down 30, 40 even 50%?

The assumption that funds just carry on up without also going down is not factual, look at the long term trends - we all hope the future will match the past in general terms, the probabilities remain on that side of the argument for the long term.