Unit Trust (mostly) are a bad investment, they are also called mutual funds,
or at least both vehicles are rather similar even with slight structural differences.
bad, because:
-the fees are often much to high (average ca. 1.4% per year, up to 3.0% per year !, a fee you almost can not get back over long-term, and also think of yearly net inflation to add to calculate net returns)
-mostly (index funds aside) they rely on the assumption that an active mutual fund managing team can outperform general broad market indices, which is wrong as empirically proven by studies in finance.
Conclusion: avoid Unit Trusts, and better stick ultra longterm to passive indexing ETFs.
There are, of note, also nomenclature differences dependent on the country where the vehicles are domiciled. F.ex. in the U.S. there is a very successful and recommendable, technology heavy ETF called QQQ, the issuer calls it
a "unit investment trust (UIT)", which is not like a mutual fund and not comparable to Singapore unit trusts, which are mutual fund-like (often expensive, often underperforming as compared to a general market index).
More on what to avoid, here:
https://seedly.sg/questions/what-is-your-genera...
Unit Trust (mostly) are a bad investment, they are also called mutual funds,
or at least both vehicles are rather similar even with slight structural differences.
bad, because:
-the fees are often much to high (average ca. 1.4% per year, up to 3.0% per year !, a fee you almost can not get back over long-term, and also think of yearly net inflation to add to calculate net returns)
-mostly (index funds aside) they rely on the assumption that an active mutual fund managing team can outperform general broad market indices, which is wrong as empirically proven by studies in finance.
Conclusion: avoid Unit Trusts, and better stick ultra longterm to passive indexing ETFs.
There are, of note, also nomenclature differences dependent on the country where the vehicles are domiciled. F.ex. in the U.S. there is a very successful and recommendable, technology heavy ETF called QQQ, the issuer calls it
a "unit investment trust (UIT)", which is not like a mutual fund and not comparable to Singapore unit trusts, which are mutual fund-like (often expensive, often underperforming as compared to a general market index).
More on what to avoid, here:
https://seedly.sg/questions/what-is-your-genera...