Advantages Of Investing In Unit Trust

Advantages Of Investing In Unit Trust

Overview

1.Unit trust are affordable:
Investors can choose to invest in a unit trust by means of lump sum or they can do a monthly debit order. This allows them to be flexible and plan ahead of time. unit trusts are designed to benefit low income earners as the monthly debit can even start from R500 per month. this allows investor to build their portfolio over a long period of time and does not put pressure on their finances.  

2. Unit trust are managed by professionals:
 Investors do not suffer a lot of loss as they have professional people to guide and control their unit trust. These professional are well informed on the right investments to make that will benefit the investors. They also act as stewards for the investor’s money and will ensure that it increases over the years to benefit the investor. The knowledge and experience that the managers provide can benefit the investors excessively. It will also, in the long run, increase their investments returns. 

3.Diversification of Risk:
Unit trust allows for diversified risks as they invest in a diversified portfolio. This will decrease chances of failure as when one investment fails the other might do well. It focuses on the proverb that you must not put all your eggs in one basket.  

4.Transparency:
Investors are not at risk of mismanagement of funds or embezzlement as they are well aware of how their funds are being managed. All information with regards to their investments is made available to them. The law requires that they are informed of any changes and new details with regards to their portfolio management.  

5.Unit trust are easy to sell:
If you are in need of money you can put in notice with days and receive your money. This is ideal if you have an emergency that needs cash that you need to attend to. 

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