Benefits of Investing
Besides the potential for capital growth over the long-term period, the investment scheme also provides other recognized benefits that makes it attractive relative to other investment avenues.
Amongst the benefits are the:
Diversification involves the process of spreading risk over a broad portfolio of stocks and bonds in different companies, sectors, countries or regions. The fund facilitate the diversification process through providing small investors with an avenue to pool their savings for the purchase of a diversified portfolio of stocks that will bring returns at lower risks to unit holders compared with investing directly in stock markets.
2. Professional Management:
The scheme maintain in-house professional fund manager with the expertise and resources to manage the assets of the fund. The investors thus benefit from this professional fund management of their investments in the fund at an affordable (shared) cost.
Unit holders may redeem all or part of their units on any Business Day and have their proceeds mailed to them within 10 days.
4. Ease of Transactions:
Unit trusts do not require cumbersome administrative or paperwork or record keeping on the part of unit holder in managing his investments.
5. Capital Gains:
Through participation in securities, unit trust investments provide the opportunity to reap capital growth as part of the return on a unit holder’s investment.