Unit trusts often have a name that reflects their objective for example Global Technology Fund or Far East Growth Fund. This is in contrast to a close-ended vehicle such as an investment trust where there are a fixed number of shares in issue.
What is a unit trust for dummies?
Unit trusts are the pooled resources of thousands of investors who have entrusted their money to a fund management company. The trust does not give the shares to the investor, but combines them in a portfolio. The management then divides the portfolio into many equal “units”.
Can a unit trust be sold at any time?
This means you are able to sell a unit trust at any time. Although, when investing in a unit trust, you should be expecting to make a commitment to it for the medium to long-term, ideally five years or more. Unit trusts allow you the option of taking any profits as income.
How are unit trusts used to make money?
Unit trusts make money by investing in assets such as company shares, property, bonds and other investments as well as some cash assets. You can choose to invest in ‘passive’ unit trusts which follow an investment index, or you can opt for funds investing in a particular market sector or region of the world.
Where can I find list of unit trust funds?
The list of funds authorised or recognised by MAS for sale to retail investors is available on OPERA. What is a unit trust? If you invest in a unit trust or fund, your money is pooled with money from other investors and invested in a portfolio of assets according to the fund’s stated investment objective and investment approach.
How does a unit trust work in Singapore?
How it works In Singapore, local and foreign funds offered to retail investors are regulated as collective investment schemes. A fund manager manages the unit trust or fund. They are paid a management fee from the fund, typically based on a percentage of the assets they manage.
