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Tips for Investing in Volatile Markets

Tips for Investing in Volatile Markets

The volatile markets can make many investors nervous, but it’s important to stay calm and invest with a long-term mindset. Here at AtlasTrend, we stick to fundamentals and not emotions and see market dips as potential buying opportunities.

This information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs

Sharemarkets have been volatile over the last year – from uncertainties driven by the U.S. Presidential elections, geo-political stability and relations with China, the impact of the global pandemic and now inflationary concerns from ongoing government stimulus measures as well as the pace of rollout of the COVID-19 vaccinations and uneven recovery across different economies.

Volatile markets tend to induce investor anxiety but can also create potential opportunities to seek long-term investment returns.

We examine how it can pay to invest with a long-term mindset, stick to fundamentals and not emotions, and see market dips as potential buying opportunities.

Tips for Investing in Volatile Markets

Check out our top 3 tips to for investing in volatile markets

    • Invest with a long-term mindset: Investing in the sharemarket can sometimes be volatile, with periods of positive and negative returns. It can be worthwhile to stay committed to investing if you believe in the long-term prospects of what you’re investing in.
      Taking our Trends as an example, if an investor had panicked during the negative performing months and decided to sell down their investments, and not reinvested, they would have missed out on the eventual positive investment return delivered since then.
    • Stick to fundamentals: There are many factors impacting the sharemarket such as the political or economic environment, which can cause unpredictable movements that swings quickly when investors overreact.
      We believe the key is to understand what’s driving the share price movements and whether it impacts the fundamentals of what you’re investing in. For instance, just because there are periods when the value of the Trends may fall, it doesn’t mean the structural trend of online shopping, big data or clean disruption has come to an end.
    • Take advantage of buying opportunities: We saw the sudden downward shock to sharemarkets across the globe at the onset of the coronavirus in February to March 2020.
      For investors that panicked and sold their investments, they would have locked in the gains or losses of their investments. Smart investors and the best fund managers often look for dips like these and see it as an opportunity to invest in some great companies with attractive long term prospects at lower valuation.

Tips for Investing in Volatile Markets

Investing in the sharemarket can inevitably have its ups and downs. But if you believe in the fundamentals of what you’re investing in and stick to course, it can pay off by investing with a long-term mindset. Let’s put this into context. Let’s take a look back at how each of our three managed funds (which we call Trends) have performed since they’ve launched.

Firstly, let’s see what we can learn from analysing the monthly returns of the Trends.

Tips for Investing in Volatile Markets

Investment returns are not guaranteed. Past performance is not a reliable indicator of future performance. Refer to full important notice below.

Out of the 66 months since the fund launched, the AtlasTrend Big Data Big Fund has experienced 46 months of positive returns and 20 months of negative returns.

Despite 20 months of negative returns, the Trend has delivered +106.14% (or +14.13% per year) for investors since launch to 30 April 2021.

Investment returns are not guaranteed. Past performance is not a reliable indicator of future performance. Refer to full important notice below.

Out of the 66 months since the fund launched, the AtlasTrend Online Shopping Spree Fund has experienced 49 months of positive returns and 17 months of negative returns.

Despite 17 months of negative returns, the Trend has delivered +106.48% (or +14.16% per year) for investors since launch to 30 April 2021.

Investment returns are not guaranteed. Past performance is not a reliable indicator of future performance. Refer to full important notice below.

Out of the 35 months since the fund launched, the AtlasTrend Clean Disruption Fund has experienced 24 months of positive returns and 11 months of negative returns.

Despite 11 months of negative returns, the Trend has delivered +46.39% (or +14.05% per year) for investors since launch to 30 April 2021.

Now, what does a chart of the performance of the Trends over time reveal?

Since inception, all three Trends have delivered strong positive returns (to 30 April 2021) and outperformed the MSCI World Daily Net Total Return ex Australia Index. This MSCI Index measures the equity market performance of shares listed on the exchanges of 23 of the world’s major developed economies ex Australia factoring in reinvested net dividends.

If an investor had invested $10,000 in the AtlasTrend Big Data Big Fund or the AtlasTrend Online Shopping Spree Fund since inception (9 November 2015) and held on to their investment to 30 April 2021, it could have grown to over $20,000 over this time.

If an investor had invested $10,000 in the AtlasTrend Clean Disruption Fund since inception (6 June 2018) and held on to their investment to 30 April 2021, it could have grown to over $14,000 over this time.

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About AtlasTrend

AtlasTrend is an online investment service that lets everyday Australians learn and easily invest in disruptive growth trends – big data, e-commerce, clean disruption. Each of AtlasTrend’s three managed funds invest in a portfolio of international shares that drive or benefit from these long term trends.

Important notice:
Atlastrend Pty Ltd (ABN 83 605 565 491) (AtlasTrend) is a Corporate Authorised Representative (No. 001233660) of Fundhost Limited (ABN 69 092 517 087, AFS Licence No. 233045) (Fundhost) and Arrow Securities Group Pty Ltd (ABN 30 165 731 144, AFS Licence No. 448218) (Arrow). Any advice contained in this communication is general advice only. None of the information provided is, or should be considered to be, personal financial advice. The content has been prepared without taking into account your personal objectives, financial situations or needs. If you consider it necessary you should seek your own advice before making any financial or investment decisions. The information provided in this communication is believed to be accurate at the time of writing. None of AtlasTrend, Fundhost, Arrow or their related entities nor their respective officers and agents accept responsibility for any inaccuracy in, or any actions taken in reliance upon, that information. A copy of AtlasTrend’s financial services guide can be found at www.atlastrend.com/fsg.

Any managed investment fund product (Fund) mentioned in this communication is offered via a Product Disclosure Statement (PDS) which contains all the details of the offer. The PDS is issued by Fundhost as responsible entity for the Funds. Before making any decision to make or hold any investment in a Fund you should consider the PDS in full. The PDS is available at www.atlastrend.com/pds or by calling AtlasTrend on 1800 589 778.

Investment returns are not guaranteed. Past performance is not a reliable indicator of future performance. Disclosed investment returns assume reinvestment of all distributions. For the Clean Disruption Fund performance is shown net of fees. For the remaining Funds performance is shown net of fees from 7 June 2018 and prior to that performance is shown gross of any fees. Click here for more details about current and previous fee arrangements.

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