What is Unit Trust?

To put it in layman’s terms, Unit Trust is a pool of funds invested by various investors and it is managed by professional Fund Manager. Fund Manager will provide the professional investment service to you and you pay them a reasonable fee.

Unit Trust is for people like you – with excessive cash but do not know what to do with it but still want to earn better returns than Bank’s Deposit Interest Rate. And,

• You do not know how to invest
• You do not know what to invest
• You do not know when to invest
• You do not know how to manage risk

To make life simple, let the professionals do the job by tapping on their investment knowledge, experience and skill.

Extra note: The term "Mutual Funds" is also widely used especially in the US. Unit Trust is more commonly used in European countries like the UK. The concept of Mutual Funds is similar to Unit Trust.

***Next: Types of Unit Trust.***