Mutual Funds Basics

Investing in unit trusts is easier than you think. It's a great way to save for those medium to long-term goals.

Unit Trusts are a form of collective investment that allows investors with similar investment objectives to pool their funds to be invested in a portfolio of securities or other assets.

Unit holders do not own the securities in the portfolio directly. Ownership of the fund is divided into units of entitlement. As the fund increases or decreases in value, the value of each unit increases or decreases accordingly. The number of units held depends on the unit purchase price at the time of investment and the amount of money invested.

The return on investment of unit holders is usually in the form of income distribution and capital appreciation, derived from the pool of assets supporting the unit trust fund. Each unit earns an equal return, determined by the level of distribution and/or capital appreciation in any one period.

Investing in Unit trust transfers most of the necessary know how to those best equipped to handle it-that is the UTT -AMIS (Fund Managers).

BENEFITS

There are other substantial benefits that one may gain by Investing in Fund managed by UTT AMIS;