Is it a good choice to buy unit trust? What should I look out for when buying unit trust?

Mutual funds (= unit trusts in Singapore) nowadays are almost obsolete because of their prohibitively high annual management fees (TER - total expense ratio), often 10 times

higher than comparable low cost passive indexing ETFs. And there is evidence that the active ('stock picking') mutual fund mangers are long-term underperformers. Think for Yourself...

With a simple passive indexing investment like, just f.ex., Vanguard S&P 500 ETF (VOO)

your performance over the last 5 years would have been: 9.35% annually ! The annual fees are astonishingly low 0.03% per year.

Ask Yor friend what the annual fees of his fund are, listed in his fund's fact sheet.

there are however, to be honest, rare exceptions of cheap and acceptable mutual funds or index funds:

https://www.avanza.se/placera/pressmeddelanden/...

https://www.thebalance.com/cheapest-index-funds...

There are unit trusts that can deliver decent returns, so 6% is not an unheard of number. However, whether or not one should invest in unit trusts in the first place will come down to a number of factors, including

• Risk appetite
• Preference for asset classes (some UTs are in equities, some are in fixed income, others are mixed)
• Sector preference (some people like tech stocks and hence tech UTs might be appealing)

Analysis of the unit trust also is down to several factors such as

• Volatility
• Peer to peer comparison
• Sharpe Ratio
• etc...

I presume that your colleague is probably buying from the Navigator Platform when you mention that he bought it from Aviva. What is more important is the actual unit trust that he bought.