Quote:
Originally Posted by zainabusman
For the strong at heart, the Index funds are selling at low prices in view of the downward trend of the market. The IBTC ethical fund for example is selling todat at N1.97. This is lower than its opening price for the year.
Some writers argue that buying mutual funds in a down market is a good strategy unlike buying individual stocks. This is because mutual funds are sufficiently diversified not to fall to zero and will move up if market starts moving up.
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I actually asked IBTC to buy some of its Equity fund when the market was so bullish that I couldn't get anything I asked for. But what really stops an equity fund from falling to zero. The div yields on equity funds are really quite poor and my Pension fund being managed by IBTC sure is a disaster. I would prefer to follow Buffetts advice. "Put all your eggs in one basket, and watch the basket".