Unit trust investment has become a popular choice for local investors.
In Singapore, investments in unit trusts has grown from $1.5 billion in 1995, to more than $8.5 billion today. In fact, new funds are launched almost every month. There are several reasons for the growing popularity.
Low Outlay
You can get started investing in unit trust with a relatively low amount. When you invest in a unit trust, your money is pooled with money from other investors. This allows investors with small amounts to invest, to have their money managed by the full-time professionals fund managers, who would otherwise be available only to large corporations and wealthy individuals.
Diversification
Unit trusts also represent an efficient way to build a diversified portfolio. By investing in a unit trust, you are buying into a diversified portfolio of investments, rather than an investment portfolio consisting of one or two investments or shares. In theory, by not putting all your eggs in one basket, your risk is better spread out.
Multitude of Funds to Choose From
There are also many different funds from which to choose from, to satisfy your investment objectives. They can be used to buy into domestic stocks, government bonds, and also foreign securities. Investors are also able to determine the riskiness of the fund, by looking at the type of assets which the fund is invested in.
If you would like to learn more about investing in unit trusts, please contact your trusted FLA Organization financial planner for more information today.
