Unit Trust Investment
By matcargo
@matcargo (52)
Malaysia
June 18, 2008 6:18am CST
Investing in unit is batter than directly invest in stock market or just put the in Fixed deposit?
1 response
@sdas86 (6076)
• Malaysia
18 Jun 08
Hi,
If you do not have knowledge in stock market investment, then it would be better and safer to put your money in unit trust investment.
Unit trust investment can average 5% to 10% per year and it depends on the skills of the manager of the funds.
If you are not familiar with stock market, I think that it is important that you learn some knowledge about it because stock market is the best investing machine to make your money grow. Even, unit trust can be considered as stock too.
Unit trust is pooling where the money of investors are collected to invest in stock market. Then, the earnings are divided amongst the investors depend on the number of unit at hand.
The weakness of unit trust is that it is having high fees and you don't know what the manager do to your money, how the manage invest and how well he control the fund.
So, it is always better to learn knowledge of stock investment and invest your money yourself. 
@tigertang (1749)
• Singapore
18 Jun 08
I think you've summed up how unit trust works quite well. Unit trust are an ideal investment for those of us who don't have much time, money, knowledge or the risk appitite to invest directly in the stock, commodity or derriviative market. Unit trust have less risk to them and the returns are way better than fixed deposits or basic bank accounts. (in Singapore Unit trust yield approximiately 8% per annum versus 2% per annum for local currency fixed deposits.)
However, one should be comitted to leaving your investment in a unit trust for sometime. The charges are high and chances are you will only see your investment start to make money after a three year period. One should also realise that even seasoned stock market professionals can lose money, particularly in times of economic uncertainty. However, when you look at unit trust over a long term, they tend to make good money and someone who invest a good portion of his or her income in a unit trust over sometime can expect to see some very healthy returns.
@sdas86 (6076)
• Malaysia
19 Jun 08
Hi,
You are right. The unit trust are affected by the economic. Investment in unit trust needs time and it is a long term investment.
It can be a good investment vehicle when the economy is good. When the economy is bad, do not put money in it because we never know when the bubble will burst.
