For you to maintain your own portfolio of investments, you need to keep up to date with market related information and sentiments. In today’s complex financial markets, this meaning you have to embrace a wide range of information from a surplus of sources. For most individual investors, this is rather difficult if not impossible at times which can be a frustrating attempt to keep on top of the information pile. Investing in a unit trust transfers most of the necessary know how of investing to those who are best equipped to handle it like professional fund managers. Unit trust investing is therefore still one of the best investing methods today.
A unit trust is very affordable.
With a unit trust, a portfolio of marker securities can be held rather than concentrating an investment portfolio of one or two investments or shares. The wider the spread of investments the less variable the investment returns will be. “Not putting all your eggs in one basket”
Unit trusts provide the ability for you to buy and sell without difficulties. An excellent return that cannot be sold does not necessarily mean a good investment as poor liquidity constitutes an additional risk factor for the investor.
The individuals who manage unit trusts are approved professionals. This ensures their decision making is structured according to sound investment principals. Unit trust funds enjoy the depth of knowledge and experience that a fund manager can bring. In the long term, it is this expertise that should generate above average investment returns for unit trust investors.
With unit trust investments, it is possible to spread your funds around to all of the assets classes at the same time. This ensures that the investor can gain the investment exposure he/she requires. This is great as sometimes it is difficult to gain exposure to a particular asset class.