Local investors are always optimistic about markets to take fortune turns. However, this is not always the case and when markets experience a bear run; investors are consequently forced to hold their money back. They do this out of fear that they may suffer substantial losses in the unstable market. In such cases, investors don’t need to hold back their money back when there is a reliable unit trust in Malaysia. A unit trust is one of the investment avenues where new and existing investors can put their money and accumulate wealth. A unit trust is a good avenue for investing money in short-term because they will give an investor high returns compared to bank fixed deposits and savings interests.
What is a unit trust
A unit trust commonly referred to as mutual fund or collective investment is an investment fund which is professionally managed. It involves pooling together of many investors contributions to invest again in line with the unit trust investment goals such as buying financial securities. These financial securities include shares or equities, bonds, cash, bank deposits among others. The various benefits associated with unit trust include
- Reduced risk; since a fund holds many financial securities this diversification leads to reduced risk
- The investments are managed professionally since unit trusts employ portfolio managers to manage and supervise the investments
- There is daily liquidity since the unitholders may sell and buy their units daily
- Individual investors have a chance to participate in foreign markets through unit trust funds. This provides investors with opportunities to penetrate into inaccessible markets.
The best unit trust in Malaysia for asset and wealth management is the OCBC bank which provides various ways in which you can invest as stated below.
- An investor could make a one-time investment into a unit trust fund and benefit from the immediate advantage of the current market. This is known as lump sum investment.
- Investors could also follow an OCBC stabilizer program which systematically spreads an investor’s one-time unit fund investment amount over twelve or six month time. This program comes with benefits which include a 3% guaranteed cash bonus, and autonomy to select the fund of own choice, consistent investing where an investor can invest consistently through the volatile market and benefit from the averaging of the dollar cost.
- The monthly investments where an investor can regularly invest from a minimum of RM100* every month and in the long run, even out fluctuations and risks of the market.
However, before investing in OCBC unit trust in Malaysia, you need to make various independent evaluations and decide whether the product is appropriate. There are bodies to consult such as legal, tax and accounting firms. This is because the unit trust funds are not bank deposits and are subject risks associated with investments such as specified and general investment risks. The net value of assets fluctuates in that they can drop or go up and the past performance does not suggest future performance. This is an indication that the payable distributions and the net asset may rise or fall. These facts should be considered before any investor makes a decision to invest with trust unit.