Friday, January 4, 2008

Selecting The Right Unit Trust - How Do I Find A Unit Trust That Fits My Objective?

It used to be simple selecting a unit trust. Today, there are a multitude of different unit trust funds competing for investment ringgit.

Perhaps a simpler way is to first identify your investment objectives. If you want your money to grow a larger sum in the future to pay for an objective and your risk tolerance is higher, you may choose a growth fund to do the job.

On the other hand, if you need an ongoing income stream to pay for expenses and your risk tolerance is low, a better choice may be a bond fund.

You may have different investment objectives, risk tolerance and time horizons at any one time, which warrants owning a mixture of different unit trust funds for different investment purposes.