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
There is always a risk of losing money
Like many other investments, investing in unit trusts always involves the risk of permanent loss of capital. If you decide that you want to sell the units you’ve invested in, the price at that time may be less than the price you paid for them initially. Protect yourself by never putting all of your eggs in one basket!