Recently, my friend ask me for advice on her investment.
She told me that her investment is sitting on 22% losses over a 6 years investment time frame.
I told her that i am not able to make any decision just based on this figure. Then she showed me her investment details.
I am kind of shock, because it is managed by a professional finance advisor.
A look at the details, i identified some problems with the investment methodology.
1) It was a skewed portfolio, with all components investing in funds investing in a particular country.
2) All the $$ was invested in Unit Trusts.
3) The investment started with purchase of unit trust at the asking price which is 5% above the bid price.
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