A unit trust is a collective investment fund that allows investors with similar objectives to gather their savings and invest in stocks or assets. Professional fund managers then manage the funds and try to generate profit for the owners.
Unit trusts bring plenty of advantages for their investors. These benefits are usually not applicable to individual investors. Check them out:
While an average investor may not have the skills, professional fund managers have the background and experience to handle a unit trust. Not only do they know about investing, but they also know how to make sound decisions.
A unit trust allows investors can start investing in a low amount of money. Sometimes, it can get as low as RM100. Lower capital investments also mean there are lower risks.
Liquidity is how we can easily convert investment back to cash. Unit trusts have high liquidity as you can easily buy or sell units. An example of an investment with poor liquidity is properties.
When you pool money with other investors, you have the advantage of buying in bulk. Investing in more significant amounts also allows fund managers to get access to wholesale products and yields. For example, unlike unit trusts, individual investors cannot directly access the Malaysian Government Security.
Unit trust investors don’t have to worry about scams or frauds as various legislations highly regulate these unit trust. Regulations allow investors to invest in a safe investment mechanism.
Achieve your investment objectives with RHB that offers a variation of over 100 unit trust funds. Visit https://www.rhbgroup.com/products-and-services/unit-trust/overview now!