Unit Trusts Investment

What do you know about Unit Trust? If you know how to make profit from stock market, does it mean you don't need unit trust anymore? Or what do you think about Unit Trust? Are you already investing it?

Well, for me, Unit Trust is for long term investment. It is lesser volatile and risk than stock market. Of course, with lesser risk and volatile, the gaining percentage will be lower than individual stock when the market is good, while the losing percentage will also lower. With such system, you won't able to see much profit in short term compare to individual stock, no matter how good the fund performance is.

So why we want to invest in Unit Trust then? Simple, with 4 main reasons that I can think of.

(1) Affordable

Yes, this is always the first reason people invest in Unit Trust. With minimum of RM1,000 in Malaysia, you can invest an Unit Trust fund. And with only RM100, you can do dollar-cost averaging twice or once a month. What an affordable investment!

(2) Lesser risk and volatile

When stock market tumble, the best performance funds will always out beat the index. For example, index falls for 40%, the fund might only falls for 30% or less. So there is no way for you to make a loss in long run, good return is guarantee.

(3) Consistent return without knowing what you invest

You don't have to study individual company annual report, wait for quarterly earnings or broker report, perhaps only fund quarter report. You just need to pick the top performance fund/s and follow a workable system, then you will guarantee get good return in long run.

(4) No monitoring required

You don't need to invest your time to monitor daily or weekly price. You just need to make sure the fund you investing is still the top fund and bring you great profit, that's it.

I noticed many unit trust agents are not professional at all. They don't know what they are selling and they just want to earn commission. I talked to few friends of mine, and I verified my findings is true. I'll try to help them, so they can improve their investment return.

The rule of thumb is, you have to know what you invest, and react when necessary.

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