UNIT TRUST INVESTMENT!

UNIT TRUST INVESTMENT

It is a fund, managed by a fund manager from an investment company to achieve the fund objective. 

The unit holders (investors), are those that contribute money to that fund, and will have to pay service charge (4 to 5.5%) for initial investment, followed by annual management fee (1 to 1.5%) every year to the investment company for its management.

There are many advantages, but I will just stress on one, and that is care-free investment. If u invest in a good fund, all you need to do is to HOLD & DO NOTHING. Of course the only thing u do is to review its performance once a year only, and receive distributions (dividends) from the fund.

One big disadvantage is obviously the high service charge when you invest in that fund at the start (one-off payment), ranging from 4 to 5.5%. In addition, the company will also charge 1.5% annual management fee from the fund for its services.

So if you are into unit trust investment, your holding period should be a min of 5 years. It's a long-term investment. Any period less than 5 years, you are most likely to see min gains only, due to the high initial service charge. 

In short, all you need to do in unit trust investment is to know how to select a good fund, and monitor once a year, and hold for a min of 5 years. Of course, the longer the better. 

I wish you great success! 
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Would you like me to share my returns from a unit trust fund? :)