Safe and reliable – Unit Trust

I’m pretty sure you know that you can increase your wealth from investing. When you hear the word investment, are you thinking of stocks and shares? People become skeptical about stocks thinking that money will definitely be lost due to the level of risk. However, if someone tells you that there are investments that have little or no risk; Do you think it’s a link?

Personally, I am not a fan of bonds or fixed income securities. Investing in bonds is a waste of time and sometimes money. However, the best investment that I really love because of the transparency and the returns are unit trusts. Another term for the trust unit is mutual funds.

A unit trust is a legal trust that holds investments and other assets for the benefit of the unit owner who shares a similar investment objective. The investment portfolio is managed by a professional fund management company that strives to meet the investment objectives of the unitholders.

The trust unit is divided into equal parts called units. Investors buy and sell these units to the trusted unit manager. An investment trust is established by means of a trust deed.

There are advantages and disadvantages of investing in mutual funds. In fact, in any type of investment, there are advantages and disadvantages. Unit trust serves investors who do not have much financial knowledge about investing. As the investment trust is run by professional fund management, people who spend time and money studying investment, I am sure your money is in good hands.

The advantages of the trusted unit are affordability, professional investment expertise, diversification, liquidity, security, convenience, and compatibility. Where the most disadvantages for the trust unit are the risk (all investments have risk), the level of care and the high cost base.

There are other factors to consider when investing in mutual funds as well, but here are some of the features to consider the next time you want to invest.