How do you choose the right unit trust for you?
7 TIPS ON INVESTING IN UNIT TRUSTS
- Compare returns to its relevant index
- Watch out for high fees
- Don’t time the market
- If you choose to invest in unit trusts, hold for the long term
- There is always a risk of losing money
- Don’t forget to diversify your investments
- Remember, unit trust companies and consultants are there to sell you a product. It’s up to you to do your own research
- Quiz: Unit Trust
Remember, unit trust companies and consultants are there to sell you a product. It’s up to you to do your own research
- A unit trust company makes money no matter how well (or badly) your investment performs.
- The unit trust consultant who sells you the fund makes money from a commission at the point of sale (Remember: the upfront fees, which can be as high as 5 to 6%, goes straight to your sales agent as their commission). Always be cautious of the consultant’s advice and remember that their main goal is to get you to buy the product from them.
- A unit trust consultant won’t advise you on other investment options other than unit trusts. Also, for any reason whatsoever, he/she may only promote certain funds to you instead of highlighting others. So keep yourself informed by doing your own homework and staying aware of the other funds that are out there!