How to make Gains from a Falling MarketIt is generally considered that in order to make gains from a unitised investment, the value of your units must constantly rise - but is this always the case? See for yourself...The graph shows the number of units purchased by a yearly contribution of GBP 10,000 in two example funds - Fund A where the price rises steadily and Fund B where the price falls and then recovers to its original level. Gains are made from the falling market because your contributions buy a larger number of units as the prices of these units have decreased. This means that each year a larger number of units are added to your contract:
|