Investor Insights: Stay on Track to Get Ahead | Mackenzie Investments

Investor Insights

Stay on Track to Get Ahead

Many people react to the market’s ups and downs by making emotional decisions about their investments, buying when the stock market is nearing a high, and selling when the market reaches low points. This type of emotional investing leads to investors sitting on the sidelines during some of the market’s biggest gains.

Keeping money in the market over the long run means investors get the full benefit from all up-market movements. Over the past 15 years, investors who stayed invested even during the worst periods ensured full participation during the best recorded days.

MSCI World Index, March 31, 2002, to March 31, 2017

Source:

Mackenzie, Morningstar as of March 31, 2017. For illustrative purposes only.

Timing markets is difficult to do well, and costly to get wrong

Missing even a few of the best days can be expensive. Over the past 15 years, investors who kept $10,000 invested in MSCI World outperformed those who missed the best 10 days by $7,729 ($13,357.18 in TSX), or 3.21% p.a (4.26% in TSX).

$10,000 invested in MSCI World from March 31, 2002, to March 31, 2017

Source:

Mackenzie, Morningstar as of March 31, 2017. For illustrative purposes only.

$10,000 invested in TSX from March 31, 2002, to March 31, 2017

Source:

Mackenzie, Morningstar as of March 31, 2017. For illustrative purposes only.

Speak to your financial advisor for more information.

 

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Index performance does not include the impact of fees, commissions, and expenses that would be payable by investors in the investment products that seek to track an index.

The content of this document (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it.