A friend of mine asked me this very interesting question which I would like with you today.
“Why should I invest with Unit Trust Investment Scheme while actually I can invest myself with equity market?”
Wow! For your information my friend is a long time player with equity market where he makes his living out of it.
Here is my answer to him.
In the past decade, the local unit trust industry has burgeoned into one of the most popular investments for individuals. The virtues of unit trust funds are numerous. They are totally transparent investments - you see all costs and their daily value is easily obtained.
The prime reason for the popularity of equity unit trusts is that their underlying investment is in the stock market and this gives individual investors the chance to grow their capital under the guidance of an expert, the fund manager.
Unless you are likely to inherit great riches, the way to wealth for most people is to invest in assets that give the best chance of capital growth in the long term. The stock market has proven, over the past 30 years, to be the best vehicle to achieve this.
But equity unit trusts are not without their health warnings. They are definitely long-term investments to be held for a minimum of three years. If you intend to liquidate your investment within three years then equity unit trusts are not for you; rather go for an income unit trust fund (if it's for at least a one-year term) or a bank account or money market unit trust fund (for shorter periods).
Investors in equity unit trusts need to be brave - the stock market rises and it falls. Hardy investors will sit through the down times and build up a treasure chest of wealth for their old age.
Personally Invest –> Worried about the up and down of the equity market
Unit Trust Scheme –> Let the Fund Manager Worried about it
May be you guys can share you opinion or you may have different answer to this question…
“Why should I invest with Unit Trust Investment Scheme while actually I can invest myself with equity market?”
Wow! For your information my friend is a long time player with equity market where he makes his living out of it.
Here is my answer to him.
In the past decade, the local unit trust industry has burgeoned into one of the most popular investments for individuals. The virtues of unit trust funds are numerous. They are totally transparent investments - you see all costs and their daily value is easily obtained.
The prime reason for the popularity of equity unit trusts is that their underlying investment is in the stock market and this gives individual investors the chance to grow their capital under the guidance of an expert, the fund manager.
Unless you are likely to inherit great riches, the way to wealth for most people is to invest in assets that give the best chance of capital growth in the long term. The stock market has proven, over the past 30 years, to be the best vehicle to achieve this.
But equity unit trusts are not without their health warnings. They are definitely long-term investments to be held for a minimum of three years. If you intend to liquidate your investment within three years then equity unit trusts are not for you; rather go for an income unit trust fund (if it's for at least a one-year term) or a bank account or money market unit trust fund (for shorter periods).
Investors in equity unit trusts need to be brave - the stock market rises and it falls. Hardy investors will sit through the down times and build up a treasure chest of wealth for their old age.
Personally Invest –> Worried about the up and down of the equity market
Unit Trust Scheme –> Let the Fund Manager Worried about it
May be you guys can share you opinion or you may have different answer to this question…
