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UNIT TRUST - Coggle Diagram
UNIT TRUST
Types of Fund
Income fund
Equity fund
Bond fund
Balanced fund
Aggressive growth
Fund Islamic fund
Real estate investment trust
ADVANTAGES
Diversification
Fund with variety of objective
Record keeping
Professional management
high liquidity
Affordability
Safe
Disadvantages
High annual expenses
Transaction cost
lower return
load fee
market risk
Parties involved in Unit Trust
Management Company
responsible to collect fund from investors
Trustee
a third party of agreement between unit holder and unit management company
Investor
A Unit Holder is a person who buy the ut from UT management company
Types of UT management company
Closed end fund
it refers to fund involved fixed capital base
Open end fund
it refers to fund that is no limit that can be trade by investors
Defintion:
one type of investment where Unit Trust Company pooled investors' money before invests in selective investments