If this email is not properly displayed, please click here.
Humanising Finance
October 2015
     
Demystifying unit trusts
 
What are unit trusts?
A unit trust is a fund that consists of individual investors’ money that is invested into a variety of financial assets. The fund is managed by a professional fund manager and invested into various assets that meet the unit trust’s objectives.

For example, if you invest in a China fund, your money will be invested into selected opportunities within China by the fund manager.
 
 
Why unit trusts?
It is common knowledge that simply putting our hard-earned money in a savings account gives us very little interest and erodes the value of our money due to inflation.

Unit trusts allow individuals to tap into the expertise of professional fund managers who will monitor your investments on a day-to-day basis for a potentially better return.
 
 
What are its advantages and disadvantages?
Advantages:
  1. Opportunity to invest into a diversified portfolio of investments in accordance to the fund's mandate and objectives
  2. Ability to access markets that may not be available to individual investors. For instance, it may be difficult for a retail investor to invest directly in an overseas stock market but the individual can do so through a unit trust that invests in this market
Disadvantages: 
  1. Incurring of fees such as sales charges and annual management fees
  2. Unit trusts are generally considered medium to long-term investments, hence may not be as liquid as other investments
 
With so many unit trusts out there, how do investors select which one to get?
When it comes to choosing a suitable unit trust, investors have to bear in mind their risk appetite, their investment horizon and objective, their financial/investment needs as well as their willingness and ability to withstand the volatility of the investment/unit trust.

Unit trusts can be a good way to diversify your portfolio and secure your financial future. Those who are interested should consider speaking to professional financial advisors who can help make recommendations based on your investment goals and risk appetite.
 
Maybank’s team of professional wealth managers conduct a fact finding process to help both the customer and the financial advisor understand the customer’s profile before recommending any unit trust to ensure that it is in line with their risk profile.

Should you be keen to find out more, feel free to visit any of our Maybank branches or make an appointment online to speak with a wealth manager.
 
 

Got a topic you would like to learn about? Let us know at: corporateaffairs@maybank.com.sg

 
ENQUIRIES
This automated electronic direct mailer is not programmed to receive email enquiries or feedback. Please direct your enquiry to cs@maybank.com.sg instead.

UPDATES

If you would like to update your email address, login to www.maybank2u.com.sg or download this form, fill in the relevant sections, sign and mail it back to us.

UNSUBSCRIBE
As our valued customer, you get to enjoy updates of our latest offers. However, if you would like to be removed from our mailing list, please reply to this email with the word 'Unsub' in the subject title.
Security, Privacy & Client Charter | Security alert
 
 
Copyright 2015 Maybank. All rights reserved.