Newbie investing in unit trusts/mutual funds via Finexis. To do or not to do?

Finexis is a legit financial advisory firm. Their role is to provide financial advice to people who are not investment savvy, or no time to monitor and adjust their portfolio. Of course, it depends very much on the consultant's competency and integrity in offering advice that is suitable/appropriate for your unique situation.

Since you claim to be newbie, another route is invest thru robo advisors. They are like your digital financial advisors who will suggest a portfolio based on your risk profile. It is no longer the competency of specific consultant, but rather the investment strategy/philosophy of the robo advisors that matters.

@YJ has given a good overview on UT vs ETF. Consider his points if you decide to invest on your own (in the future when you are more well-versed with investment) instead of going thru Finexis, other FA firms, or robo advisors.

Indeed, unit trust have high fee, and expensive. Totally agreed, no arguement.

Every instruments have it purpose
Normally, Financial Advisior will construct your investment portfolio using unit trust, because of following reason.

1) FA will have to assume you have 0 knoweldge in investment. Choosing UT allow them to help u automate your investing by RSP (regular saving plan). So you may hands off, no emotion, $$$ will transfer from your bank to your investment account automatically monthly.

2) Normally, UT is buy in units. Example, If your budget is $1000 a month (dollar cost average). You have 2 UT in your portfolio. 50-50% allocation. Current price $11 & $3 respectively. Your $$$ will split equally, $500/11= 45.45 units, $500/3= 166.67 unit, all $$$ invested. However, if you are buying stock, price fluctuate daily if currently is $11 you can only buy 45 shares, you will left $5 un-invested, overtime u will alot of cash build up un-invested.

Remember, FA will always assume you have 0 knoweldge & want you to hands off, automate, invest regularly and carry on with your daily life. Thier job is to help you to achieve your financial goal with a expected timeline instead of beating the market.

You may choose ETF if
1) you have 1 lump sum, u no need to DCA, thus automate is irrelevant. Copy what the unit trust FA recommended and get a ETF that is equivalent.

2) you are DCA-ing, and you dont mind hands on. And can do it regularly, consistently regardless of market up & down.

NOTE

• However, when FA help u to construct a portfolio, there is definately at least 5-8 unit trust. DCA-ing monthly into each will be expensive , transaction fees, if using ETF, assume you copy their portfolio construction. Thus need to select a low comm or 0 comm brokerage.

• choose a brokerage that have fractional shares, so u can DCA accordingly to your budget.