What is a unit trust?
A unit trust pools monies from individual investors and is professionally managed by a fund manager. The monies are then invested in various assets like bonds, fixed income instruments, equities or other asset classes as provided for in the unit trust’s prospectus.
What are the benefits of investing in a unit trust?
The benefits are:
How do I decide which unit trust to invest in?
Your choice and decision should be made based on your goals, risk tolerance and investment time horizon. Different unit trusts invest in different asset classes, markets and sectors, depending on the investment objective and strategy of that particular unit trust. Consequently, they also have different levels of risks and returns.
Are returns guaranteed?
Like all investments, there are risks involved. Unit trusts are no exception and returns cannot be guaranteed. Prices can rise or fall depending on a range of factors including market conditions and investors have to exercise judgment and make their own decisions.
What is the minimum investment amount?
This varies from unit trust to unit trust. Generally, the minimum initial investment amount for most unit trusts is S$1,000. For subsequent investments, the amount is lower, usually between $200 and $500.
Please refer to the relevant unit trust’s prospectus for more details.
What are the transaction fees/ charges involved?
Generally, there are 3 types of transaction fees/charges:
When and where are the purchase prices available?
Unit trust investments operate on a forward pricing basis. This means that unit trust prices are only calculated at the end of the day after all investments and the cost of all transaction activities have been taken into account.
The unit trust’ prices can be obtained by:
Will dividends be paid?
This depends on the type of unit trust you buy. Dividends, if any, are also paid out at the discretion of the fund managers.
Who can invest in unit trust?
You need to be at least 18 years old (as at the date of application for the unit trust) to invest in unit trust. Before investing in any unit trust, please ensure that you have read the relevant unit trusts’ prospectus and the relevant terms and conditions.