Benefits of Unit Trust

Benefits

There are numerous benefits to investing in unit trusts. With so many investment options out there, it really is a good idea to weigh the pros and cons of each type to make sure that it really will be the investment for you.
If you are deciding to purchase unit trusts within your portfolio, here are some of the specific benefits of unit trusts to help you make that final decision:

Security – a unit trust fund has a mandate, which is really a legal agreement that explains the investment goals within the unit trust. So that mandate will really explain whether the overall goal is to be low, medium, or high risk investment. Then you can look at much risk you are willing to take – maybe it shake it up a bit, and have some unit trusts that are thought to be higher risk, and have that are lower too.
Unit trusts are also held in trust, so if the management company goes under, your investment will still be safe.

Recourse – a unit trust are regulated very strictly and so if there is ever a problem with defalcation or fraud, your money is also safe. That helps to take some of the worry off your shoulders.

Professionals – when you decide to purchase unit trusts, you really are entering into an agreement with a whole list of professionals. You have access to an exception amount of knowledge and expertise through the fund managers. They work hard to pool the investments and combine them together in a diversified portfolio.

Performance – you will be able to see how well your unit trust is performing on a daily basis on an investment website. There are also several print media that track performance and they are easy to access. Looking at a unit trusts’ overall performance over its lifetime is always a good idea before you decide to invest. And that information is readily available these days.

Diversification – pooling your money with others, means that you can really leverage your purchasing power and really diversify the risk involved. Most of us don’t have enough capital to buy up enough investments to have a diverse range. So unit trusts give you that flexibility. They also allow you to buy into investments that might not be available for a small amount.

Get your money out – there are no minimum investment amounts or periods of time in which you can stay invested. So you can basically cash out at any time, even with short notice.