Sunday, 6 September 2015

Investing in Unit Trust

Benefits of investing in unit trust:
1. Diversification
Diversification involves the process of spreading risk over a broad of portfolio of asset classes which include but are not limited to stoks and/or sukuk. Further diversification can also be achieved by the diversification process by providing you with an avenue to pool monies for the purchase of a diversified portfolio of stocks and/or sukuk that will bring returns at lower risks compared with investing directly in stocks and/or sukuk markets.

2. Professional management
Unit trust funds are managed by professional fund managers with the expertise and resources to manage the assets of the fund. You can thus benefit from this professional fund management of investments via the fund at a shared (affordable) cost.

3. Liquidity
You may redeem all or part of your units on any Business Day and have you proceeds mailed to you within 10 days.

4. Ease of transactions
Unit trust funds do not require cumbersome administrative or paperwork or record keeping on your part in managing your investments.

5. Capital gains
Unit trust funds which seek to achieve capital growth over the long term provide the opportunity for you to chieve capital gains.





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