What is the fee structure? This will differ depending on where did you invest with. If its directly from a platform like ifast, typical fees may involve sales charges (about 5%), switching fees if you decide to move your investments into another fund, platform fees and fund management fees. If you buy through an insurance company, may still have sales charges, administrative charges, policy charges, costs of insurance, fund management fees. May not have 100% allocation into funds from the start as well. Usually will have unlimited switches for free. Unit trusts as a whole may not be fully transparent as you won't know the full extent of the stock counters the fund is buying into, and you won't be able to sell it on your own unlike a counter on a stock exchange. Some funds may also be a a sub fund of a bigger fund. Next - what is your purpose for using unit trusts as an investment vehicle? For retirement? To build up some assets for something else? I'd suggest learning to invest on your own instead of using unit trusts as an investment vehicle. The fees alone will erode a big portion of paper gains when you want to liquidate, if there are any paper gains that can be had in the first place. Regardless of whether the fund makes any gains in a given year, fees are deducted. To me, it's not worth investing your hard earned cash into something that first lines the pockets of fun houses and/or representatives who market the product to you. Take control of your investments journey instead of leaving it to chance. Hope this helps
What is the fee structure? This will differ depending on where did you invest with. If its directly from a platform like ifast, typical fees may involve sales charges (about 5%), switching fees if you decide to move your investments into another fund, platform fees and fund management fees. If you buy through an insurance company, may still have sales charges, administrative charges, policy charges, costs of insurance, fund management fees. May not have 100% allocation into funds from the start as well. Usually will have unlimited switches for free. Unit trusts as a whole may not be fully transparent as you won't know the full extent of the stock counters the fund is buying into, and you won't be able to sell it on your own unlike a counter on a stock exchange. Some funds may also be a a sub fund of a bigger fund. Next - what is your purpose for using unit trusts as an investment vehicle? For retirement? To build up some assets for something else? I'd suggest learning to invest on your own instead of using unit trusts as an investment vehicle. The fees alone will erode a big portion of paper gains when you want to liquidate, if there are any paper gains that can be had in the first place. Regardless of whether the fund makes any gains in a given year, fees are deducted. To me, it's not worth investing your hard earned cash into something that first lines the pockets of fun houses and/or representatives who market the product to you. Take control of your investments journey instead of leaving it to chance. Hope this helps