A reader said in a recent posting that shares are very volatile and thus asked me to write something about unit trusts.
Unit trusts or funds are financial vehicles where individuals can pool their monies to invest in certain sectors, themes, country etc at a specific risk profile.
Individuals essentially engaged fund managers to make investment decisions on their behalf.
For that, you have to pay them $$$. The annual fees are usually a percentage of funds under management, regardless whether the fund make money or not.
In addition to that annual fees, you may be required to pay a one-time marketing fee upfront when you first participate in the fund.
Volatility will still be around as it would depend on the type of unit trusts you have selected. Eg. you should have a higher appetite for risk for you to invest in technology funds as compared to investing in essential consumer product sector.
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