Do You Invest In Unit Trust ?
I owned some public mutual funds and the prices dropped so badly since the day I put in money. Now the loss is about 5%-8%. Anyway, now is not a good time to invest in UT. The financial professional predicted that the market would continue to go down until 2009. If you feel that it’s the best time to go in then you can make a commitment to invest consistently and wait for the market to reach the up cycle again and you can sell off all your units for a handsome profit.
You should make sure that you do not take unit trust as something to earn money but it’s for saving money. The amount that you plan to invest is not money that you plan to use anytime soon. Anyway, it’s better than you put your money into FD that may be cannot counter the inflation rate.
Unit Trust is different from insurance; you can just sell off unit trust easily and get your cash after deducted transaction fees. However, there are terms and conditions for insurance policy. If you terminate the policy, you will suffer by paying penalty and enjoying low return only unless invested for a certain number of years.
Take note: Investing does not necessarily have to be risky. You need to understand what you are investing in. Understand the rules regarding each type of investments and then make an informed decision. Then investing is not that risky.
