7 Reasons to Invest in Unit Trust

My 7 Reasons for Investing in Unit Trusts

1. They are already well-diversified : Unit Trusts buy into a good variety of stocks and bonds thus, risks are well diversified

2. Less Stress : They are managed by professional Fund Managers. You go about your daily life without stressing over the ups and downs of the market cycles

3. You can invest all over the world. Long Story short: unit trusts = invested all over the world in various business sectors = more opportunities

4. You only need a small amount of investment to start with. Investments start mostly at $500 and $1000 to buy you into a well-diversified portfolio. You may have tosell your kidney before venturing into stocks

5. Redemption is immediate. If you sell your stocks, it joins the queue awaiting to be bought by other investors.The price may be different from the price you quoted. With Unit Trust, the issuer is bound by agreement to buy from you at the day's prevailing price...no matter what.

6. It is relatively safe. Long story short: they are well diversified, thus risks are smaller. Fixed Income unit trusts are super safe and in the long run, these still perform better than your fixed deposits.

7. Most important of all, you can reap tremendous returns. Over the long term, unit trust investment can reap very handsome returns. Some good unit trusts have returned more than 200% in a year. That means that an investment of $1000 at the beginning of the year would turn into $3000 at the end of it! Many have given about 15% - 20% average annualized returns every year.