Market crashes can be nerve-wracking, but they don’t have to derail your financial goals. Whether you’re invested in unit trusts, stocks, or other assets, here are proven strategies to safeguard your portfolio and even turn volatility into opportunity:
Panic-selling locks in losses. History shows markets always recover—even after steep drops like the 2020 COVID crash or 2008 financial crisis. If your unit trust is well-diversified and aligned with long-term goals, staying invested is often the wisest move 13.
Unit trusts already offer built-in diversification across assets (stocks, bonds, commodities), but review your fund’s mandate. Balanced funds (mix of equities and bonds) or fixed-income funds can reduce risk during downturns 27.
Market crashes = sale prices! If you have spare cash (and an emergency fund), consider topping up your unit trust holdings at lower prices. Dollar-cost averaging (regular investments) smoothens entry timing 16.
Ensure your asset allocation matches your risk tolerance. Younger investors can lean into equities for recovery growth, while those nearing retirement may shift to stable funds (e.g., money market or income-focused unit trusts) 610.
Unit trust fund managers actively adjust portfolios during volatility. Trust their expertise to navigate storms—your job is to avoid emotional decisions 47.
Retirees: Keep 1–2 years of living expenses in liquid assets (e.g., money market unit trusts) to avoid selling investments at a loss 68.
💡 BONUS TIP: Use downturns for Roth IRA conversions (tax-savvy move) or review EPF-linked unit trust investments for long-term growth 12.
🚀 Ready to Fortify Your Portfolio?
Market crashes test patience but reward the prepared. Whether you’re a new or seasoned investor, our unit trust solutions are designed to weather the storm.
👉 [Learn more about our crash-resistant funds] -- > skim.com.my
👉 [Chat with our advisor] [[email protected]]
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SK Lim
Your Wealth Partner
Singapore