What happens if you miss the best 25 days of returns on the Australian Share Market?

At Alman Partners True Wealth we have always advocated our clients to be diversified and patient investors. In the example below, this portfolio is invested into the top 300 Australian shares be size. If you stayed invested for the full time you received an 8% annualised return. If you missed the best 25 days your return dropped to less than 1%.


What does this mean? Out of 3,835 trading days, most of the returns were generated on 25 days.

 

The lesson here for investors is this; It is impossible to time your entry into markets. Secondly, we do not know when these days will come, so once you diversify your portfolio stay patient to collect your expected return.

 

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Stephen Lowry CFP, DFP, FAIM, is a representative of Alman Partners Pty Ltd, Australian Financial Services Licence No: 222107.

 

Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

Note: This material is provided for information only. No account has been taken of the objectives, financial situation or needs of any particular person or entity. Accordingly, to the extent that this material may constitute general financial product advice, investors should, before acting on the advice, consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation and needs. This is not an offer or recommendation to buy or sell securities or other financial products, nor a solicitation for deposits or other business, whether directly or indirectly.

 

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