This is an investment scheme that enables many investors who share the same financial objectives to pool their money to be invested and managed by professional fund managers for mutual benefits.
All unit trusts normally operate on a dual pricing basis whereby investors purchase the units at a selling price and redeem them at the buying or repurchase price.
An important benefits of unit trust is diversification where investors can access a broader range of securities than they could on their own. For the small investors because of their limited resources, unit trusts offer better exposure to the different classes of assets. Even though there is a long-term risk to owning mutual funds, if you invest prudently and for long-term, mutual funds should outperform safer investments like bank deposits or bonds and inflation over time.
No comments:
Post a Comment