How to start investing in Unit Trust?

1. Who and Where?

You can choose to visit a Bank or Unit Trust Management Company. Or more directly, talk to a UTC (Unit Trust Consultant, generally known as Unit Trust Agent). Make sure you choose the right person to manage the Unit Trust for you, do not choose the unqualified and irresponsible agent.

2. How to make decision?

• Understand your Risk Profile – Aggressive, Moderate or Conservative*
• According to your Risk Profile, choose the type of Unit Trust you want to invest – Equity, Balanced, Bond, Money Market, etc*
• Decide which market you want to go for, Asian, Far-East, Global, Local, etc*
  *please refer to my previous blog for details

3. What to prepare?

Usually photocopy of your Identity Card or Passport. And obviously, money! Either cash or cheque, my suggestion is to write a cheque.

4. How much?

Depends on the Unit Trust, some minimum entry is RM500, some RM1000.

5. Where to get money?

• Make sure you have extra money and you do not have outstanding balance in credit card! Someone who has outstanding balance in credit card asked if he should invest in Unit Trust. My answer to that person was obviously a “NO”!
• For Malaysian, if you have worked for quite some time, you can withdraw part of the money from EPF Account 1, I will share more about this later.

***Next: Strategies***