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Unit Trust (Other factors to consider (Time horizon (age of investor…

- - - - full time with relevant expertise and resources to manage investment
    - - investment made in a composition of assets/stocks across industry sector or even countries
    - - investors save time as fund managers manages investment full time
    - - ability to convert investments into cash easily and conveniently
    - - cheaper than direct investment as initial amount can be less than or equal to $1,00
  - - - Restricted to the types of funds but have no control of the composition in asset class
    - - Not entitled to certain benefits/privileges as compared to direct investments
    - - Diversification may reduce the risk but it does not eliminate it as market price of unit trust will fluctuate
    - - such as redemption fee and initial sales charge can be avoided if investor manages his own investment
- - - - paid to trustee for providing custody service of fund asset
    - - paid to fund manager for managing investment
  - - - charged when buyer sells unit trusts
    - - some funds allow investors to switch to another fund managed by same fund manager
    - - charged when investor buys unit trust