1) Unit holders
2) Trustee company
3) Fund manager
4) Asset management company
Below figure illustrates how Unit Trust works for your money:
What is Unit Trust?
"A Unit Trust is a vehicle which enables individuals, corporations and institutions who have common investment objectives to pool their money and the professional fund managers than used this pooled money to acquire investments that would meet these objectives."
Benefits of investing in Unit Trust
Access to professional fund management
Minimization of Risk through diversification by spreading investment in broad range of asset classes and portfolio management
Liquid investment and ease of redemption
Expose to most security with minimum outlay of capital
Able to practice dollar-cost-averaging strategy
Why Investment is Needed?
The primary objective of investment is that the invested asset will provide income in the future or appreciate and be sold at a higher price, in which the investor has to forgoing current consumption for greater consumption in the future.
What is Investing?
Investing is:
•The outlay of money usually for income or profit
- Webster Dictionary
Allow your money work for you and enhance your wealth!
Investing is NOT:
•Gambling - to bet on an uncertain outcome
•Speculating - to assume a business risk in hope of gain;
especially : to buy or sell in expectation of profiting from
market fluctuations; to take to be true on the basis of
insufficient evidence
How to start?
•Step 1: Know yourself
What are your investment objectives?
•What are your constrains?
•What risk level are you comfortable with?
•How much time do you want to spend on investment?
•What is your edge?
Step 2: Know the investment option
What are the investment option available?
•Who can you engage? E.g. financial planner / consultant,
bank, unit trust company, unit trust consultant & etc
How is the engagement procedure?
