Some investors invest in Unit Trust Scheme by making regular (e.g monthly) contribution or investment in Unit Trust Scheme with series of smaller lump sum investments. Contributions are not contractual and can be stop at any time without any penalty.
This is a disciplined, useful and flexible way for investors to accumulate capital for future needs. By making regular contributions over a period of time, the sum (including investment returns) accumulated at the end of the period may be expected to be significant compared to the amount of each regular contribution.
At the end of the period, the proceeds from disposal of the units will represent the accumulation of all contributions, plus returns generated by each contribution. Clearly, the amount accumulated is likely to be greater the longer contributions are made and the units held.
This form of saving is the basis of Retirement Saving and also applicable for Children Education Saving.
Investing in Unit Trust Scheme through regular saving is very attractive to smaller investors because they can participate with a capital outlay of typically as low as 100.
This is a disciplined, useful and flexible way for investors to accumulate capital for future needs. By making regular contributions over a period of time, the sum (including investment returns) accumulated at the end of the period may be expected to be significant compared to the amount of each regular contribution.
At the end of the period, the proceeds from disposal of the units will represent the accumulation of all contributions, plus returns generated by each contribution. Clearly, the amount accumulated is likely to be greater the longer contributions are made and the units held.
This form of saving is the basis of Retirement Saving and also applicable for Children Education Saving.
Investing in Unit Trust Scheme through regular saving is very attractive to smaller investors because they can participate with a capital outlay of typically as low as 100.
