Spread of Risks
A unit trust fund is pooled to obtain a wider spread of investments, which enables greater returns. At the same time, the risks are diversified.
Ease of Liquidation
A unit trust manager is obliged to repurchase units from a unit holder whenever requested to do so by a unit holder.
Reduction of Administrative Burden
A unit holder is relieved of the substantial administrative burden and time spent on direct research, trading, management and record keeping.
A unit holder’s investments are managed by fully qualified and trained professionals who conduct economic research and use their expertise to manage the unit trust fund which otherwise may not be available to the ordinary investor. By virtue of its research facilities, experience and investment skills, the manager is in a better position to make a more informed investment decisions.
Units of a unit trust fund are generally sold at relatively affordable prices. For a minimum initial investment, a unit holder can avail himself of the expertise of professional fund managers which may not be possible if he were to seek professional services on his own.