The simplest way to explain unit trust operation is that you are giving your hard-earned money to someone that you think you can trust and expect him to use your money to invest wisely so that you could receive some return in medium to long term.
To many people, they afraid of entering stock market as they just can't stand for the market volatility or being burnt during the previous stock market crisis. They scare of being hurt and decide to let the professional do the job instead.
Now, when you decide to let someone else to handle your investment, there are two factors that determine whether their performance is up to your expectation or not. The first is the cost of investment as well as, the second, the quality of fund manager. Technically speaking, a fund manager must abide the operation required in the trust deed, no matter he likes it or not. Furthermore, the personal characteristic and experience of the fund manager will also affect the investment performance of the fund greatly. Therefore, it is quite impossible to expect any fund manager to do what you expect him to do.
Since there is nothing much that the investor could control the fund manager, by letting him to manage your money, you still have to pay him to provide the service. Yes, most of the fund will have initial charge ranging from 2% to 8%. Beside that, annual management fee and trustee fee will be deducted proportionately from the funds daily Asset Value. The Net Asset Value you get is after all these charges. Imagine, how long do you need to get your unit trust investment breakeven?
Since there so many uncertainties on unit trust investment, the best way is to carry out the investment by yourself. Trust me, it is really not difficult at all. Many of my readers of Infinite Wealth as well as those who attended my online course, INVE$T BURSA, have become more confident on stock investment than ever before. You will be able to do your own stock investment advisor with confident, no matter how market moves.
Start to learn now and be yourself.
You - The Best Investment Advisor Ever
Reviewed by Pisstol Aer
Published :
Rating : 4.5
Published :
Rating : 4.5