Wait to recover the loss on technology fund

Dear Mr Tan,

One of my relative bought about $70,000 worth of NTUC technology fund. It is now worth about $40,000. Will this fund grow back to at least $70,000?

When they bought this fund, no one advice them that this is a risky fund. As you mentioned, there are ups and downs.

When will my relative recover at least back to their breakeven point ? How long will it grow back from 20cents to a dollar

KT

------------------

Dear KT

Your relative will have to wait for the tech fund to reach 35 cents (not $1), before they can recover their investment.

I hope that this can happen within the next few years (but I do not know for sure). Many people expect technology to recover by now, but it seems to be taking longer.

They must have invested at a bad time. Many other investors made the investment at a lower price (or have averaged out on their investments), so they are already making a capital gain in this fund.

I have some personal investment in the technology fund as well, made at about the same level as your relative. So, I will also have to wait.

In my case, I have other investments, so the gain in some funds outweigh the losses in the tech fund.

Tan Kin Lian