Unit Trust 101 : What is Unit Trust? – CekikDarah.com
Editor’s Note: I would to introduce you to our newest contributor, Sheyzal Azman.
He is a Financial Consultant specializing in unit trust.
He was interviewed by the Personal Money magazine in the March 2009 edition.
In this part, he will introduce us to Unit Trust.
WHAT IS UNIT TRUST INVESTMENT?
Unit trust investment is a collective investment method that pools the resources of many individual who have the same investment objective. The investment will be managed by a professional fund manager according to the fund portfolio and objective.
WHAT IS THE BENEFIT OF UNIT TRUST INVESTMENT?
There are many benefits investing in unit trust and best describe as follows:
Your investment will be invest into various type of investment such as bond, share market, money market , REITS and other types of investment depending on your fund portfolio. this is possible because the fund manager has a lot of resources (money) coming from all investors to be invested using different type of investment methods and companies. in comparison if you invest on your own on the share market, you will have limited resources to diversify your investment. Diversification helps to reduce the risk in investment.
Unit trust fund are also easy to redeem when needed with the process usually take only a few days to be ready depend on the unit trust company. several unit trust companies can even provide a speedier services if you are their VIP INVESTOR.
Unit trust is totally legal and all your investment are manage according to the deeds, rules and regulations, therefore you don’t have to be worried about your money falling into a Ponzi or Pyramid scheme. All agents are required to have a license to sell unit trust and it has to be renewed each year. All unit trust companies are also monitored by the Malaysian Securities Commission.
With as little as RM1000 you can open an investment fund account and RM100 is the minimum amount required for an additional investment therefore it is affordable to everyone compare to other investment like properties or share where you need a lot of money to start and invest.
5) Ease of transaction
It is so easy to invest, all you need is to fill in several forms and that’s it.
Nowadays you can even invest online.
6) Competitive returns
Unit trust will give very competitive returns in the form of capital appreciation and also dividend distribution. The longer you invest the more you will get because of the compounded effect on your investment.
7) Manage by professional
The most important thing is your investment will be manage by professional fund manager that have all the data, knowledge and also resources(money) to handle your investment.
Sheyzal AzmanFinancial Consultant
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