I'm DCA-ing every month to Syfe, should i be worried that my returns are at a negative value now?

In a global equity meltdown, economy at a standstill, no big surprise most people's portfolio are taking a hit, your are not alone. take a chill pill

Hi good afternoon,

Thank you for your question. It depends on what you are currently investing on, with DCA method. You should not worry if it is only these period that it is dropping or having negative value. Also what is your strategy when you are investing from Syfe, it is for capital appreciation or for dividend, different objective will have different results.

I have came up with 3 tips that you can look into,

(1) How are your investment performing (before covid-19 pandemic) for the past 10 years?

(2) Are they beating benchmark returns as compared

(3) Are your returns from roboadviser consistent as compared to investing by yourself or from a Financial Advisor.

Due to current Covid-19 situation, it is not uncommon that investments returns are dropping or negative. Violatility within this period of time is acceptable. However, what's more important is what you are investing on.

Let's look at S&P500 as reference.

If you look into it's historical value for the past 100 years since 1900s, you can see that it has always been a bullish trend (upward trend) despite all the world war, tech boom, financial crisis and such (that causes temporary decline) however it has always been on upward trend.

So if for example what you are investing on, are very strong companies. In my opinion, you do not have to worry as these negative values are temporary. However if what you are investing on are not as stong company, then perhaps it might be better to restructure and to lower your risk.

Hope this helps!

Take care.​​​