What & Why Invest in Unit-Trust?

There are many investment instruments available for you to invest. You are encourage to place your money into various asset classes accordingly to your Risk factor.

Unit-Trusts are a practical alternative form of investment. You may have already invested with your insurance agent or Bank planner with your CPF or cash savings. A unit-trust pools money from many investors which is then invested in a variety of asset in order to meet specific investment objectives. the pool is managed by a team of full time professionals and a trustee is appointed to protect the interest of the investor.

You invest in a unit-trust by buying units in the trust. The price of each unit is determined in relation to the trust's net asset value (NAV). This is the market value of the trust's net asset that is make from the Investments, cash and other assets minus expenses, payables and other liabilities, divided by the number of units outstanding.

The NAV is usually computed daily to reflect changes in the prices of the Investments held by the fund.

Unit-Trust offer several advantages. First, you can select a fund or a combination of funds to cater to your specific investment Goals and Tolerance for Risk. If, you are nearing a retirement and have low tolerance for risk, you can invest in unit-trust like Bond fund or Balanced fund. On other hand, there are unit trust that are suitable for investors looking for higher potential returns and willing to accept higher risks.

Second, unit trust allow you to invest into a diversified portfolio with a minimum investment of as a little as $1,000. Also a unit-trust with $40 million in asset can hold hundreds of different shares and can also negotiate lower transaction costs such as brokerage changes.

Third, Unit Trust allow you to invest in Securities that you may be unable to access as an individual investor. These securities includes bond that usually required a minimum investment of $100.000. It may also be difficult for you to invest directly in overseas stocks whereas you can conveniently invest in a unit trust investing in international stock markets.

Fourth, fund invested in unit trust are managed by professional fund managers and analysts. You can therefore benefits from their expertise and full time attention to investing the funds.

Lastly, buying and redeeming unit trust is simple and easy. Most unit-trust allow daily buying and selling of units. You can get updated values of the price of your unit trust from the daily newspaper and your servicing Financial Adviser.