Benefits of Investing In Units Trust
Unit trusts are investments where investors’ money is pooled together and invested in a range of securities (e.g. shares, bonds, cash etc), and the profits from the investments are typically passed on to individual unit owners instead of reinvesting them back into the fund. Unit Trusts are usually managed by a professional Fund Manager.
Why Invest in Unit Trusts?
Unit trusts offer a variety of benefits to the investor. These include:
Diversification & Reduction of Risk
An investor’s risk exposure is reduced by way of diversification. Investors’ money is always spread across different investment instruments, or within the same category of instrument, but still across different entities.
E.g.: An Equity fund can diversify by buying shares of different companies.
Because unit trusts are pooled or collective investment schemes, investors don’t need to have already accumulated large amounts of money to invest in them. At Bifm, investors can begin investing from as little as P200 per month.
Access to Professionals
Unit trusts are managed by experienced and professional fund managers. While you may not necessarily be clued up on stock market investing, at Bifm you can trust that your money is being managed by experienced and knowledgeable professionals who have the expertise to manage your unit trust fund.
Bifm Unit Trusts offer investors great flexibility in terms of how they invest, how long they invest, and for what purposes they invest. Investors get to decide what their frequency of contribution will be (once-off, monthly or ad-hoc). It is also the investor’s prerogative to decide how long they wish to have their money invested, and lastly, investors can invest in the Bifm unit trusts for many reasons e.g., Emergency fund, Holiday fund, School fees, Asset acquisition, general saving etc.
Exposure to Different Assets & Markets
The pooling together of investors’ funds allows investors exposure to different investment securities some of which investors might not have been able to access were they to go direct to the issuer. As in the case of Bifm, unit trusts can also give you exposure to different markets.
Bifm Unit Trusts are highly liquid and allow investors access to their money within 72hrs.