Monday, 25 May 2015

Why Invest in Unit Trust?

Why Invest in Unit Trust?

•  Professional Investment Management
The fund managers who take care of your unit trust funds have access to information and statistics from leading economists and analysts. Consequently, they are in a better position than individual investors to identify opportunities for your investment to grow.

•  Diversification
Unit trusts allow you to broaden your portfolio. With your nest-egg spread across a basket of securities, your overall investment risks are reduced.

•  Liquidity
An investor can sell his units, wholly or partially, at the following trading day's unit buying price. Units have a high liquidity, that is, they can be readily converted into cash.

•  Ease of Transactions
Unit trusts provide investors with a simpler, more convenient and less time-consuming method of investing in securities. The paperwork that comes with managing your own portfolio of shares and bonds are handled by the fund manager.

•  Security
The interests of unit holders are protected by the appointment of an independent trustee to hold the fund's assets on behalf of the unit holders. The trustee will also ensure that the fund manager will always manage the fund in accordance to the Deed of the fund and the Guidelines issued by the Securities Commission.

•  Affordable and Flexible
The minimum initial investment amount is low as compared to investment in shares and/ or bonds. Furthermore, additional investment can be made in even smaller amounts than the minimum investment amount

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