Are unit trusts good investments?

The short answer is yes. A unit trust offers a cost effective manner to access a diversified portfolio of investments. As opposed to buying individual shares and bonds to build your own portolio. These usually come in the form of annual management fees which are net off your investment holdings.

Is it good time to invest in unit trust?

Besides, when considering investing in a unit trust, anytime is a good time to invest, as a regular savings plan is essential to reduce the effect of market fluctuations on the average investment cost (dollar cost averaging principle).

Can you lose money in unit trusts?

You may lose a substantial amount of the money you invested in certain situations. The risks of investing in the fund are described in the product offering documents such as the prospectus and the product highlights sheet. Fees can also reduce your returns.

What are the disadvantages of unit trust?

Disadvantages of Unit Trusts

• Unit Trusts are not allowed to borrow, therefore reducing potential returns.
• Bid/Ask prices exist – with the price that you can buy a unit for usually higher than the price you can sell it for – making investment less liquid.
• Not good for people who want to invest for a short period.

What is the benefit of investing in unit trusts?

The main advantages of investment into a Unit Trust fund is the reduction in investment risk by way of diversification as well as having approved professional investment managers manage the funds. Unit trust investments generally tend to invest in a range of individual securities.

What are the risks of investing in unit trusts?

Some of these risks associated with investments in unit trust funds; wholesale funds and/or Private Retirement Schemes are interest rate fluctuation risk, foreign exchange or currency risk, country risk, political risk, credit risk, non-compliance risk, counterparty risk, target fund manager risk, liquidity risk and …

What are benefits of investing in unit trust funds?

Benefits of Investing In Units Trust

• Diversification & Reduction of Risk. An investor’s risk exposure is reduced by way of diversification.
• Affordability.
• Access to Professionals.
• Flexibility.
• Exposure to Different Assets & Markets.
• Liquidity.

What is the risk of unit trust?

Some of the risks associated with investing in a unit trust include: Market Risk – Fluctuation in the market caused by uncertainties in the economy, political and social environment will affect the NAV of the unit trust.

What are the disadvantages of investing in a managed fund like units trusts?

The drawbacks: Portfolio managers can’t actively manage the assets held by a UIT. What’s more, investors typically have to pay a sales charge, one-time organizational cost and annual expenses such as trustee and supervisory fees.

What are the advantages of investing in unit trusts?

Who is the owner of Syfrets unit trust?

Syfrets, owned by Nedbank, had become the leading unit trust brand since it set up an institutional asset manager in 1987. The Syfrets Growth Fund, run by Tony Gibson, took a dynamic and independent approach at a time when other equity funds were packed with stodgy house shares and rarely looked at up-and-coming mid- and small caps.

Who is the founder of Syfrets Growth Fund?

The Syfrets Growth Fund, run by Tony Gibson, took a dynamic and independent approach at a time when other equity funds were packed with stodgy house shares and rarely looked at up-and-coming mid- and small caps. But Nedbank was not prepared to reward its staff through profit share; the investment staff should have been grateful that they had a job.

What can I do with unit trust funds?

You can select from focused Equity funds or a selection of Balanced funds that provide access to a spread of equity, property, cash, and fixed income instruments. W&I domestic unit trust funds provide daily access to your investment. Whilst offshore unit trust funds trade weekly.

Which is the unit trust fund of Investec?

Investec Wealth & Investment (W&I) domestic unit trust funds include the W&I Equity Fund and W&I Dynamic Equity Fund, W&I Balanced Fund of Funds and Q&I High Equity Fund. Our offshore range of funds includes World Axis Global Equity Fund, World Axis Core Fund and World Axis Cautious Fund.