Good Potential Returns
In the long run, unit trusts have the potential to generate better returns when compared to more popular investments like fixed deposits and traditional insurance policies. In 2006, I bought Public Regular Sector Fund when the CI was 900 points. In 2007, when the CI was at 1450, I sold and made 41% return. My other 3 funds I bought in 2003 gave me an average return of 20%.
Less Risky Due To Diversification
Unit trusts are designed to spread your money cross a large number of different securities. This reduces the impact of having a single investment go wrong or underperformed.
Professional Management
When you invest in unit trust, you are indirectly hiring a full time, experienced professional to look after you investment. The cost of these professional are shared by all unit holders.
Ease Of Access To Money
Unit trusts provide easy access to the money you have invested. Unlike fixed deposit and insurance, you will be penalized if you redeem before its redemption period.
Before you invest in unit trust, you must get the right agent who can give sound financial advices.
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