Unit trust is another investment vehicle which I can categorized as moderate risk. However, each fund has it own risk rating and should be accessed individually.
What is Unit Trust?
A investment scheme which allow me to pool my money with other investors (thousands of them) and professionally managed. Investment manager will invest the money on my behalf and distribute the profit/loss back to the unit holder.
Why do I Need Unit Trust? Can I Just Invest by Myself?
I need to understand the benefits of unit trust in order to answer the questions.
The Benefits of Unit Trust
Professional Fund Management: For a small fee, professional fund managers will decide how to invest my money using their expertise and resources. This is what I am lacking. So it is a good idea to hire them.
Diversification: My money will be invested over a broad portfolio of stocks in different companies, sectors, countries or regions. This will reduce the risk involved.
Simple, Save Time and Liquidity: It is easy to purchase unit trust compared to buy stock directly in stock market. It saves me time to study and predict future market in order to make decision. I can redeem my investment and receive cash within two weeks.
What is Unit Trust?
A investment scheme which allow me to pool my money with other investors (thousands of them) and professionally managed. Investment manager will invest the money on my behalf and distribute the profit/loss back to the unit holder.
Why do I Need Unit Trust? Can I Just Invest by Myself?
I need to understand the benefits of unit trust in order to answer the questions.
The Benefits of Unit Trust
Professional Fund Management: For a small fee, professional fund managers will decide how to invest my money using their expertise and resources. This is what I am lacking. So it is a good idea to hire them.
Diversification: My money will be invested over a broad portfolio of stocks in different companies, sectors, countries or regions. This will reduce the risk involved.
Simple, Save Time and Liquidity: It is easy to purchase unit trust compared to buy stock directly in stock market. It saves me time to study and predict future market in order to make decision. I can redeem my investment and receive cash within two weeks.
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