Unit trust has enjoyed growing popularity in Singapore in the past decade.
You may have some experience in investing in Unit Trust, but do you know the following details?
Here are 3 interesting facts about unit trusts which you may not be aware of.
1. Liquidity
Unit offer more liquidity than stocks.
Most unit trusts in Singapore are open-ended. This means the fund manager issues new units whenever an
investor invests, and buy back units from an investor when they want to redeem. Thus, investors may
convert their units into cash easily.
2. Security
Investors has investment security investing in unit trusts.
All unit trusts registered in Singapore are regulated by the Registrar of Companies and Businesses. A
trustee is appointed and oversees the management process to ensure it complies with the trust deed, and
acts for the benefit of investors. However, this does not mean you won’t make any loss, because there is market and other risks.
3. Forward Pricing
Most unit trust in Singapore are forward priced.
Unlike stocks, the fund manager cannot quote a price for an order to buy or sell for the actual day. Instead, the manager quotes the last bid and offer prices calculated for the unit trust. This is usually calculated based on the previous day’s valuation, at which unit buyers and sellers from yesterday will have to deal at.
If you’ll like to learn more about investing in unit trusts, just contact your trusted FLA Organization financial planner today.
