Unit Trusts are financial products that buy a number of shares and other investments such as property, term deposits, and cash. Expert asset managers make the buying decisions within a predefined mandate. The managers also have to act within a certain legal framework governed by the Financial Service Board, which makes it a safer investment. Asset managers are also more likely to make better investment decisions than the average person would.
When you buy units in a unit trust, you are spreading your savings across a range of shares or other investments within the fund. That means that your money is diversified which leads to a lower risk rating. Unit Trust are also more cost efficient and transparent compared to insurance type products or investment policies.
Examples of Unit Trust Investments
Unit Trusts are only conduits to the actual assets such as shares, bonds, cash and property. Depending on your risk profile, you may make up your own combination of Unit Trusts to match your needs.
For instance, a long-term investment would have more than 50% invested in shares whereas a short-term investment would have more than 50% in cash. Our product providers offer some of the best Unit Trusts out there and we only pick those that have shown a good track record.
For more information on Unit Trusts and why you should consider them as an investment, visit the Why Unit Trusts page.