Friday, February 1, 2008

Disadvantages of Unit Trust - Loss of Control

Investors in Unit Trust Scheme lose the right to direct how their savings are invested. If Unit Trust Management Company funds managers invest Unit Trust Scheme investment portfolios in accordance with the prospectus and deed, there is little that we as unit holder can do if we disagree with investment decisions made by the fund manager.

It also said that Unit Trust Management Company fund managers must invest in accordance with the prospectus and deed even if market conditions or investment 'fashion' change.