6 advantages of investing in unit trust
Unit trust or mutual fund is still a new industry in Malaysia compared to Western countries like USA where they already have more sophisticated funds like hedge funds.
A few example of unit trust companies in Malaysia are like Public Mutual, TA and many more.
The main advantages that one should look into when investing into unit trust are as follows :-
High Liquidity
Buy and sell anytime you want to sell at the unit trust offices. Call your respective agents if you want to buy or sell your units. It’s getting better, unit trust industry is taking a step forward where buying and selling of units can be done online.
Zero knowledge? No problem
Know nothing about investment? Let the professional people in the respective investment houses invest you money for you. Fundamental? Technical Analysis? NO need crack your head. Let them do the thinking.
Save Time
No need sit in front of your computer to monitor the prices daily. Let your agent do the monitoring for you. (Make sure you have a good agent)
Diversification
Take unit trust as another form of investment where you diversify your portfolio. Don’t just concentrate on one but concentrate on many like equity, gold investment, fixed deposit, asset accumulation and many more.
Low Capital
A startup capital. Only RM 1000 can you start investing in unit trust. So everybody can invest!
Hassle Free
Just a simple form to fill in and a few signatures will do. Wallaaa.. you are done.
Conclusion
Unit trust investment is an investment which doesn’t guarantee returns where most agent claims to be. It is another form of investment where one should put some of it’s eggs into it but not all.
I personally have a little money in unit trust but it’s only 1% of my total money i have cause i am a high risk taker. My favorite tool is still the equity market.
In short, no harm investing in unit trust but please find a reliable agent and hope for the best.
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4 Responses to “6 advantages of investing in unit trust”
By johnny ong on Jun 6, 2009 | Reply
unit trust will grow over time. in usa, shares are being traded by unit trust companies. only very rich retail players buy direct at the stock market
By Horlic Lim on Jun 19, 2009 | Reply
For me, i use Unit Trust as my regular monthly ‘forced’ savings tool rather than a investment tool. And the fact is, its work very well for me!
By ChampDog on Jun 21, 2009 | Reply
Johnny, I thought people do buy stock directly? No?
By Kampung Boy on Jul 1, 2009 | Reply
Horlic is basically is doing dollar cost averaging method for his unit trust investment.
Horlic, your method of investing in unit trust is very good. Keep it up and i am sure you will get the reward you are looking for.
^^