Google

Sunday, March 22, 2009

Benefit of investing in unit trust

Investing in unit trust brings along many benefits.
The obvious one would be the usually higher returns compared to Fixed Deposit and EPF.
But of course, this will depend on which fund you choose to invest.

Another benefit is you are able to diversify and invest in many companies via lower amount of investments. This is because, when you choose a fund, the fund manager will invest your money together with other fund holders money into several stocks, as well as bonds / money market instruments, depending on the objective of the fund.

Also, these fund managers would need to meet their KPI, therefore they will often strive to get the best returns for your money.

In addition, investing in unit trust allows you to earn dividend as well as capital appreciation at one go.

Unit trust is suitable for people with low-medium risk, who are scared/too busy/don't know how to invest in share market directly.

Tune in for the next part of this article - "The Bad Side of Unit Trust investments - The things your unit trust consultant don't like to tell you"

No comments: