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INVESTMENT IN ISLAMIC UNIT TRUST - Coggle Diagram
INVESTMENT IN ISLAMIC UNIT TRUST
DEFINITION
A collective investment scheme that obtains money fromm pooling savings money from various investors who share the same financial objectives, investment strategy and risk
ADVANTAGE
Affordability
Diversification
liquidity
investment exposure
wholesale investement costs and access to other asset classes
Professional fund management
comfort of regulation
DISADVANTAGE
The Fees
Less Control of Your Investment
Brain Dead Portfolio
Not Suitable for Short-Term Investment
TYPE OF SHARIAH BASED UNIT TRUST
Balance Funds
Equity Funds
Fixed income fund
Money Market Fund
Syariah fund
OPEN ENDED FUNDS VS CLOSES ENDED FUNDS
SHARES
In an open-end fund, shares are issued and retired on a regular basis, with new shares being issued to a purchaser of the fund or retired when someone wants to sell.
A closed-end fund issues its shares only when the fund is launched, and any new investors must buy shares from existing investors, so supply and demand determine the fund’s price.
TRADING
In an open-end mutual fund, shares can be bought and sold at the end of each day at the fund’s closing
closed-end funds trade based on supply and demand throughout the day and can trade at either a premium or discount to the fund’s