Saturday, June 9, 2007

Introduction of Unit Trust

What is Unit Trust?
Unit Trust is pooling the investments of many investors, having same objectives and invest in share market,money market,bond,property and etc.

What is the benefits of Unit Trust?
1) Diversification
Don't put all your eggs in one basket. Fund Manager will reduce the risk by invest in
different types of securities,bonds and equities.

2) Liquidity
An investor can sell his units, wholly or partially, at end of today closing price. Unlike share market, you need to find a buyer to sell your share.

3) Professional Fund Management
Professional fund manager will allocate unit holder investment to different type of potential company. Fund managers will do the analysis on company. For those unit holders who knows nothing about investment can just sit back and relax.

4) Investment Opportunities
With as low as RM1000, unit trust holders have the opportunities to invest in variaties of blue chips and potential share.

5) Better return in long run
USUALLY
unit trust will provide a better return in long run compare to saving account or fix deposit. When we think of investment, we need to take inflation rate into consideration.

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