Tuesday, January 8, 2008

Advantages of Unit Trust Scheme - Ready Access to Funds

Most Investors require that their investments be liquid, i.e. the investment can easily be sold within a short period of time. Unit Trust Investment provide this benefit, as units can be bought and sold readily through Unit Trust Management Company, Institutional Unit Trust Agent and Person Dealing in Unit Trust.

An investment that is expected to produce an excellent return but which cannot be sold does not necessarily constitute a good investment, as poor liquidity forms an additional risk factor for investors.

Currently most UTMC (Unit Trust Management Company) will pay the proceeds of the repurchase of units to unit holders in less than 10 days of receiving the repurchase request.