UNIT TRUSTS

Unit trusts are managed by professional fund managers. Using monies pooled from investors, they actively invest in different assets according to a fund’s stated investment objectives.

In Singapore, retail investors can buy into both local and foreign funds, which are grouped under Collective Investment Schemes and regulated accordingly.

Benefits of Unit Trusts

Professional Management

Lean on the advice and recommendations of professional financial experts. When you invest in unit trusts, you are also entrusting your funds to savvy money managers who have many years of experience in picking assets and investment vehicles.

Diverse Investment Options

Investing in unit trusts also means gaining access to markets that may not be available to regular investors, for example, frontier markets or specialised assets such as ethical investments. This gives investors the ability to invest in a broader range of assets and markets.

Spreading Out of Risks

Unit trusts are usually diversified. Depending on its investment objectives, a unit trust may invest in a range of assets across different industries, growth stages or geographical regions, allowing for a more optimal distribution of risks.