5 Reasons Why Unit Trusts Are Like Buffets

5 reasons why unit trusts are like buffets

Join the investment game by trying a bit of everything. Units trusts (also known as funds) are a great option to consider if you’re like that hungry foodie who needs a taste of every dish.


When it comes to investing, diversification is always a good way to balance risk and reward in your portfolio. Unit trusts are exactly that, offering a varied selection of investments so you don’t need to pick them individually.

Unit trusts let you invest across a wide range of markets, industries and sectors. They also come with varying risks and rewards so you can always find something to suit your appetite:

Fixed Income Funds: Funds that invest in bonds and payout a fixed amount on a fixed schedule

Equity Funds: Mutual funds that invest primarily in stocks

Balanced Funds: A mix of bonds, equities and commodities

Understanding your risk profile

A fund manager takes care of your unit trust investments – watching the market, selecting investments and adjusting the mix continuously. With access to investment information and research, he can decide on the fund’s strategy and make sharp long-term decisions to manage the funds.

Buffets offer a huge variety at a price significantly lower than if you had ordered all the items à la carte. Similarly, unit trusts enable you to invest in a suite of assets that can include blue-chip stocks at an affordable price, starting from as little as S$1,000.

It’s entirely up to you. Most unit trusts are not locked in for a definite period, and can be sold and converted into cash at any time. So, invest as much as you are comfortable with, using a timeframe that suits you.

  1. Give yourself a head start
    Jump the queue and get into it with a lump sum from your bonus, inheritance or savings.
  2. Grow it steadily
    Keep the momentum you’ve got going, by adding to the pot with regular monthly contributions.

Disclaimers and Important Notices

This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.

Thank you. Your feedback will help us serve you better.

Was this information useful?

That's great to hear. Anything you'd like to add?
We're sorry to hear that. How can we do better?
Enter only letters, numbers or @!$-(),.